Keeping your funds in your existing 401k plans gives you limited investment options but when you decide to get a self directed IRA, you can have the freedom that you want over your money.
When it comes to retirement funds, people have several options. One is to maintain the 401k plan but this gives you less control over your money.
Cashing out your funds, meanwhile, is another option you have.
However, you have to know that when you do this, you will be taxed greatly upon withdrawal. The last and probably the best option you have is to rollover your 401k into a self directed IRA.
This can be a wise decision because self directed IRAs provide you full access and control over your funds.
You can invest your money anywhere you want, as there is no one who can prevent you from using the money.
There is a custodian who can guide you but the decision is still in your hands. If a self directed IRA real estate is something that interests you, then you have all the liberty to make property investment.
The sky is the limit, as you can invest in private or public properties. You can also consider venturing into residential and commercial property business, or make real estate partnership. It’s all up to you.
If by any chance you’re not into real estate business, you can still invest your money in other industries, including mutual funds, bonds, silver and gold, stocks, foreign currency, and loans.
Just remember to be cautious and to take your time in making investments.
The more diverse your investments are, the higher your chance of overcoming a financial crisis.
However, you have to ensure that you know a lot of things about the industry you want to invest in.
This way, you can make wise and strategic decisions and avoid wasting your retirement funds.