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There are different types of retirement plans you can choose from depending on your needs and preferences.

Each of these retirement plans has its own procedures in terms of application. Each also has its own benefits and requirements.

Among the many different types of retirement plans are a 401(k) plan and a Self-Directed IRA. These two are the most popular and most commonly known plans in the United States. They may both be popular, but these plans are quite different from each other.

Before we go deeper into just how different they are though, let’s first define what a 401(k) plan and a Self-Directed IRA are. A 401(k) is a retirement plan that is sponsored by a person’s employer. In this plan, an employee invests or saves a portion of his or her paycheck into this retirement plan before taxes are taken out. In this case, the employee doesn’t pay their retirement taxes until they starts withdrawing some of the money from the account.

A Self-Directed IRA, where IRA stands for Individual Retirement Account, allows people to have alternative investments for their retirement savings or funds. These are provided by certain financial institutions in the United States. In a Self-Directed IRA, people can invest in either real estate, precious metals, bonds, the stock market, etc.

Some of the differences between a 401(k) and a Self-Directed IRA are the following:

● As mentioned earlier, a 401(k) doesn’t require a person to pay taxes while they are still making a deposit. Paying taxes will only begin when he or she starts withdrawing money from that account. For a Self-Directed IRA, any contributions a person makes is already taxed, so they no longer have to make any payments when they start withdrawing. In a way, this can mean going for Self-Directed IRA can provide a better idea on how much money you actually have in your retirement account. You don’t have to think of the amount to be deducted for taxes when you withdraw.

● The 401(k) plan is known because a good number of businesses are on this. However, the reality is that not all businesses can be qualified for a 401(k). This is because the 401(k) plan is designed for those who are self-employed and their spouse who doesn’t have any full time employees on board or on their payroll list. Those who own bigger enterprises with full time employees often have to go for the Self-Directed IRA, instead. Thankfully, a Self-Directed IRA is still considered to be the best option for retirement planning.

● A Self-Directed IRA is basically one of the newest types of retirement plans that is comparably more flexible than other plans. In a Self-Directed IRA, the account holder or investor can choose to put his or her money anywhere they want. They can either put it in mutual funds, real estate, precious metals, stocks and more. A 401(k) is more of a workplace retirement account that is often offered as an employee benefit, where part of the employee’s paycheck goes into the fund.

If you’re interested in starting your own Self-Directed IRA as part of your life planning, you can consider making precious metals as your investment. At our company, Capital Gold Group, we can provide you with gold, silver and other physical precious metals you need for your IRA.

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