401K to IRA: Three Reasons Baby Boomers Are Making the Switch

More and more Baby Boomers are making the 401K to IRA switch these days. While each Boomer that takes such action may have a different reason to do so, there are three reasons in particular that this type of activity is picking up. A trend is forming.

Reason #1: Time Keeps on Ticking

Of course, if a Boomer is retired and no longer works for a company that they had a 401K with for many years, it only makes sense that they would do a 401K to IRA switch so they can continue to invest their money as they enjoy their golden years., but, because Baby Boomers are defined by the Census Bureau as those born between 1946 and 1964 that means the Boomers are all either at retirement age or getting there in a hurry prompting them to take action with regards to their retirement investing whether they are of retirement age or not.

Reason #2: Control

Whether retired or not, a lot of Baby Boomers are seeking to take full control over their retirement investments. These Boomers are likely the ones that are doing a 401K to IRA switch and going into a type of IRA that is both flexible and allows for a great diversity of asset investing known as a self-directed IRA. This type of IRA offers check writing privileges and puts the account holder in total control. Many Boomers are even able to make this switch even though they are still employed at a certain company.

Reason #3: Diversity

With all the ups and downs that many of the Baby Boomers have been through over the years many of them are seeking more diversity in their retirement planning. Again this is where a 401K to IRA could work to their advantage should they end up in a self-directed IRA. Self-directed IRAs will allow an individual to invest in all the typical investment vehicles that a standard and ROTH IRA would allow, such as stocks, bonds, and mutual fund, but also will allow for asset investments like real estate and physical gold. This allows the Boomers to have a greater degree of diversity.

Continued Trend

With the first wave of Baby Boomers already hitting retirement age, the 401K to IRA switch will likely be a trend that can be expected to continue, especially with the growing popularity of self-directed IRAs. While self-directed IRAs might not be the perfect solution for everyone, for a generation that is used to taking charge like the Baby Boomers a self-directed IRA allows them to do just that with their retirement funds, as well.

To find out if a self-directed IRA is right for you call 877-339-4559.

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