For many individuals, a good portion of their available investable net worth is held in a retirement account, either in a 401(k) Profit Sharing Plan with their current and former employers or in Individual Retirement Accounts (IRAs). Retirement accounts are solid tax efficient vehicles to grow wealth and invest for retirement. However, due to the administrative challenges, investments are usually limited by most Plans and institutions to deposit type solutions (money market accounts and CDs), stocks, bonds and their mutual fund and ETF counterparts.
While those asset classes and solutions are important and should be part of every investor's portfolio, many investors would also like to tap their retirement funds to invest directly in real estate, small businesses, start-up companies or to create a loan portfolio. Those self-directed investment options can only be conducted through a self-directed IRA (or the rare 401(k) Plan that allows self-directed investments) with an institutional custodian that provides that feature. Traditionally, self-directed accounts were made available primarily through Internet based distant institutions. However, through the Trust Group of the Bank's Trust & Investment Services Department, clients are able to establish and direct such investments in their IRA through their trusted and local community bank. This allows our clients the close local relationship and experience to process the investment allowing those transactions to occur and be administered efficiently and successfully. Self-directed investing within IRAs is subject to strict rules and an independent opinion of qualification may be required or prudent.
For those investors who have 401(k) accounts with former employers, a Plan to IRA transfer to a self-directed IRA with the Bank, as well as a regular IRA for those who want to utilize the Bank's full investment management solutions, is a great way to properly plan for retirement and to create an investment strategy to provide the greatest opportunity to achieve your retirement goals.