If you want to jumpstart your retirement savings there are several things you can do. The first of course is to max out the 401(k) plan taking advantage of any contributions your employer can make. The second is to open a Roth IRA and max it out, with after tax income and let it grow. Then rather than having a second job to earn extra income start a small part-time business. Owning a small business gives you tax breaks now that save you money and it gives you the opportunity to open up an SEP or Simplified Employee Pension plan. This is tax deferred income, but with the help of a skilled financial planner you’ll be able to divert a larger percentage of total income into the SEP this creates more money that can grow without tax burdens taking advantage of compound interest reaching geometric growth proportions.
If you are an entrepreneur and risk taker at heart consider having your Roth IRA in a self directed account. If you are willing to spend time with a self directed Roth IRA your investments that you control can be in areas that grow faster than traditional, passive investments. The foreign currency exchange or forex markets are an example. Selling US dollars to buy Japanese Yen, when it is beneficial for instance, or selling Euros to buy British pounds. A self directed IRA can be used for this type of investment and really jumpstart y our retirement savings.
The US Stock Market is also available if you have a self directed Roth IRA. You can control your self directed IRA and buy and sell stock the way a day trader does with a chance for large gains in your initial working capital.
Another area where you can jump start your retirement savings is in a special and not well known plan the government allows to use your 401(k) money to buy your own business. The account has to be self directed and it is your retirement account that will own the business, so you wouldn’t be able to sell it before retirement and take the money out without paying a penalty, but the business can pay you a salary to manage it, so you’ll be able to make a very good living and control your own destiny. Owning your own business inside an IRA or 401(k) will really jumpstart the old retirement savings.
Real estate is another option. Your self directed IRA, Roth or traditional, can own property which you can manage. You have to be careful of current expenditures, but a good accountant or tax lawyer can help you set up a corporation to control the property, and the benefits for large gain are enormous. Whichever of the methods mentioned you choose, usually self directing your IRA will provide you the control you need over your investments to create larger than average growth. By doing this you take your destiny into your own hands and take responsibility for your own future.