Many advisors are not familiar with the genuine self-direction, non-traditional retirement industry. This industry administers retirement plans equipped with plan flexibilities, which allow account owners to purchase anything allowed by law. Genuine self-direction is the tool you need to help your clients invest in “what they know.” Consider the following:
Don’t be deceived. Any plan offering account owners three or more asset options is considered self-directed. This has necessitated the addition of the qualifier “genuine” to self-direction because real self-directed plans allow account owners the freedom to invest in anything allowed by law.
Non-traditional investments. “Anything allowed by law” includes assets like real estate, gold, promissory notes, closely held stock, options, leases, IPO stocks, private REITS, franchises, tax lien certificates, and oil and gas leases, to name a few. These are the assets your clients want to purchase because they are comfortable investing in “what they know.”
Genuine self-direction. Retirement plans offer plan owners a tremendous amount of flexibility. However, not all plans offer this flexibility. It’s because it’s in the best interest of those who offer the plan to limit plan options – you must establish a relationship with a self-directed plan administrator to offer your clients access to all available retirement plan flexibilities and asset options.
Immediate need. Retirement plans have provisions allowing clients to address pressing financial needs, such as saving their primary residence from foreclosure, before retirement or penalty free. Wouldn’t your knowledge of these provisions and assistance in getting certain clients out of serious financial difficulty build deeply rooted long-term trust?
When you allow your clients to invest their retirement funds in what they know, your clients begin to believe you place their best interest ahead of your own. There is no better trust- building opportunity. Your clients want the investment freedoms and flexibilities afforded genuine self-direction, so help them – this is your competitive edge.
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Curtis L. DeYoung founded American Pension Services Inc. in 1982, a neutral third-party administrator, for the purpose of allowing investors to self-direct their retirement funds as broadly as the law allows. For more information visit www.americanpension.com.