Retirement Accounts – Who Is In Control?
Are you in control of your retirement account? Who is making money from “your” hard-earned money that you have saved for years? Are you happy with the 1% to 3% return you have got? I am sure a lot of you are asking who is getting 3%. With these low returns do you really think that “you” are the one making the money?
Sure, the economy has something to do with your low return. Things are tough now, money is tight, and no one is setting the world on fire. I am sure I could sit here and give you a thousand excuses why your retirement investments are not performing but that is a job for your financial planner. Think in terms of golf, you could be having a terrible day on the course, but that one good shot is the one that you will remember, just like that one good quarter makes you forget about you retirement account’s past performances.
Now, I am sure that you “think” you are in charge of these accounts because you have picked how you would like your investments allocated, 20%in fund A, 30% in fund B etc. These Funds or Groups A,B,C etc. are recommended by your financial planning firm, these are good groups that have a consistent track record over the years (because if they did not the firm would not have any customers). Please understand I am not criticizing your financial planner (this is how they make a living), I am just saying that if your accounts are not performing well it is a little too easy to take the blame yourself for how the money had been allocated.
Are you familiar with True Self Directed Retirement Accounts? If you are not, now is the time to start to do your homework. If you are comfortable with the Government’s Social Security Program and that Taxes will not be changing the landscape of America just continue to follow yesterday’s path and hope for the best. 97% of retirement accounts follow this plan, allowing someone else to profit from their account. 3% make maximum returns by relying on what they know and investing for themselves.
Unfortunately “yesterday” is not “tomorrow” and tomorrow is what you need to be concerned with. Do the words “self-directed” scare you? Again I am telling you, you need to do your homework! The words “self-directed” should excite you, not scare you. There are so many investment options you have available to you that could be earning tax-free or tax-deferred dollars. Most of us fear the unknown; the more you know the less to fear. So to answer the question “Who is in Control”? Maybe we should be asking “Who Do You want to be in Control”?…