Celebrating Our Independence


by Peter Rizzo

Life Settlements in a Retirement Account? Think Again.

As we celebrated 246 years of America’s independence, every day people are celebrating their financial investing independence. The majority of most people’s investment portfolio is tied up in their IRAs or 401(k)s.

This has been celebrated by large brokerages and investment portfolio companies for years. People were dependent upon them for their investment choices and disbursement of funds.

That’s not the case anymore, for there’s a tidal wave that is happening in the investment community. More and more people are signing up for self-managed investment plans (401(k)s and Checkbook IRAs). But as our founding fathers found out, with independence comes great responsibility.

To be successful, do the following:

  1. Thoroughly vet your investments. Remember, the higher the return the higher the risk, but you can minimize your risk by totally researching what you’re investing in. You should make sure the downside is acceptable and you have a quick exit plan if the investments start going south.
  2. Invest in what you know. There are many ways to become an expert in different investments. Don’t rely on others unless you completely trust the information they’re giving you.
  3. Don’t be afraid to hire an investment advisor who is your fiduciary. That means they’re responsible to put you in investments that meet your goals, not something that helps them win a sales contest. A good advisor can have access to many different investments that you would not know about.
  4. Know the recording requirements for the self-managed plan that you have. If you have a Solo 401(k). understand when you have to file the 5500ez form. If you have a Checkbook IRA with the LLC, know your state’s recording requirements

These are just a few simple tips and there are plenty more. But if you’ve already taken the plunge and set yourself up with a self-managed plan, then celebrate, for you are ahead of the wave.

If you are still on the fence, be sure to ask whatever questions you have to see if that’s the right direction for you to go.


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