Social Security is in the Red

Are you sure you really want to count on social security? For the first time in it's history, social security is paying out more than it's taking in. No need to immediately panic. There's still a $1.2 trillion reserve to pay retirees, but how long will that last? The Fed is projecting a $19 Billion deficit over the next 2 years. Check out the gritty details in this MSN article.

Historically, most Americans have supplemented their Wall Street based IRA/401(k)/Pension savings with social security checks. The long term viability of that strategy is in jeopardy, even if it hasn't infiltrated "conventional" wisdom. Alternative strategies exists and individuals are rebuilding their retirement portfolios right now using a wide range of "non-traditional" investments.

If you think you don't have time to look at alternative strategies, you're mistaken. Find a professional that specializes in self-directed investing and let them do the heavy lifting. It's a small investment in time that will pay huge dividends when you retire...and do have time.

A Revitalized Retirement Plan Can Reduce Business Costs AND Improve Participation

Here’s a dilemma every small business owner is facing these days. How do you reduce current costs without sacrificing your growth potential? Here’s one QuickBooks line item to consider…your retirement plan. A revitalized retirement plan can help reduce your administration costs while improving employee attraction, retention and participation.

Most small business owners establish their 401(k) early in their life cycle. Because of the small size, the broker establishing the new plan modifies an existing “off-the-shelf” plan for the business owner. These plans are usually chocked with unnecessary fees to help offset the relatively small amount to be invested. And the investment choices are usually limited to a few staid mutual funds. While the plan provides all with some nice tax deductions, it’s overpriced and not helping participants save for their retirement.

But now that the business, and its plan, has grown, it's a great time look at other options. While it will require a small investment in time, a revitalized plan will save money, help increase participation levels and provide you with a competitive advantage when attracting, retaining and MOTIVATING key employees.

With trust in Wall Street waning, the fastest growing segment of the retirement market is self-direction. The law allows retirement investments beyond stocks and mutual funds. Investments in real estate, commodities and private placements are just as viable as buying stock in Google. Your inability to purchase gold or rental properties with your 401(k) is not due to IRS regulations, but the rules of you current, overpriced plan. Modifying your plan to include a broader range of investment choices will allow for portfolio diversification that will help increase participation, including that of the business owner!

To get started, find a consultant that either specializes in self-directed plans or isn’t beholden to one particular Wall Street custodian. With a little information, they can prepare options for your review that will dramatically improve your retirement plan and lower your monthly administrative costs. No small feat in today’s challenging business environment.