Self-directed retirement plan

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Self-Directed Retirement Plan

A retirement plan in which the account holder has a great deal of control over the investments made on the account. That is, either the account holder or a designated representative has the ability to make investments with the contributions made to the account. Generally speaking, a self-directed retirement plan exists through a brokerage, which makes investments on behalf of the account holder. The brokerage may charge an annual fee for managing a self-directed retirement plan in addition to the commissions it charges on the individual trades.

Self-directed retirement plan.

If you participate in an employer's retirement savings plan, such as a 401(k) or a 403(b), you usually must select the investments into which your contribution goes from a menu of choices your plan offers.

When that's the case, your plan is self-directed, and the income you receive when you retire is determined in part by the investment choices you make.

Individual retirement accounts are also self-directed, as you choose the way that the assets in the account are invested. Individual retirement annuities may or may not be self-directed, depending on the contract you chose.

In contrast, if you're part of a defined benefit pension plan, your employer is responsible for making the investment decisions. If you own a fixed annuity, the insurance company makes the investment decisions.

References in periodicals archive ?
Blackstone is coming into the market because it recognizes that self-directed retirement plans are growing rapidly," said Keith Allaire, managing director of Robert A.
America stands on the cusp of the greatest wealth transfer in its history, principally from employers' defined contribution plans to myriad self-directed retirement plans.
Let me also add three investment-related trends: the increase in online investing/trading (especially via mobile apps); the decline of defined benefit (DB) plans; and the increase of self-directed retirement plans and savings.
We uniquely cater to a broad range of discerning investors seeking self-directed retirement plans, as well as alternative investment opportunities," said Gleich.
Those who don't have self-directed retirement plans can't hold them in a tax-exempt account, something even the tax efficiency of ETFs can't overcome.
The average investor got much more involved in stocks through self-funded and self-directed retirement plans," Taylor said.
INSURANCE AGENTS serving as investment advisors, as well as sponsors and beneficiaries of such self-directed retirement plans as 401(k)s and individual retirement accounts will benefit from new roles dealing with the issue that have been proposed by the Department of Labor, say officials at the National Association of Insurance and Financial Advisors.
We're seeing clients turn to CPAs for help designing and implementing their financial and investment plans," he added, noting that the rapidly growing number of self-directed retirement plans, coupled with the transfer of wealth to baby boomers from their parents, have transformed financial planning from a privilege into a necessity.
Currently, a total of $675 billion is invested in 401(k) plans, or self-directed retirement plans, according to Access Research of Windsor, Conn.
The judges were impressed that Nicole developed a loan program to help finance real estate through self-directed retirement plans.
PHOENIX -- Entrust Arizona, led by financial entrepreneur JP Dahdah, is changing its name to Vantage Self-Directed Retirement Plans, effective Jan.