Using Your Self Directed 401(k) to Retire in Thailand

Financial experts often preach that retirement planning should begin from the day one when you start earning. It would involve striking a balance between one’s current spending and future saving. You might have to make a series of tough decisions, including how and how much to save for the future, and selecting an ideal retirement destination. It does appear to be a sound advice, but one that is seldom taken seriously by the young, earning generation of today.

Retirement is one of the most crucial stages of life that everyone has to experience some day or the other. Along with years of determination and sensible planning, the choice of location also plays an important part in the process. Retiring in places like Thailand presents a number of advantages that ultra modern marvel-cities cannot provide. Freedom from urban tumult, easy cost of living, and utterly comfortable, serene and near-pristine living environment are some benefits that Thailand can provide at much reduced cost as compared to the post-retirement life in metropolitan cities.

While everyone would love to lead a comfortable retired life in some peaceful and less expensive place like Thailand, the convolution and the time needed for building a successful retirement plan tend to the make the entire thing appear nothing less than a daunting challenge. However, the task can be accomplished with fewer headaches and much lesser financial pain than you might think. All it takes is investing some serious time and effort, doing your homework, and finding a reasonable retirement savings and ideal investment plan for leading a comfortable post-retirement life in Thailand.

What is Self-Directed 401(k) Plan?

In the ongoing battle to save more for your retirement, a 401(k) investment plan could prove to be a far more valuable asset. However, a 401(k) plan is only as beneficial as the investment choices offered by the plan. It is only with the help of a Self-Directed 401(k) plan that you can get past the restrictive investment menu of the employer 401(k) plans and choose a kind of investment that could help in retiring comfortably.

The Self-Directed 401 (k) Plan, also known as the Solo 401 (k) Plan, is an excellent avenue that can provide the investors with the ability to use their retirement fund contributions for making any kind of tax-free investments without being restricted to the limited investment options offered by the employers and also without the consent of the custodian.

Is Self-Directed 401(k) Plan Important for Me?

Most 401(k) plans offered by the employers do not provide the self-directed options. Rather, they rely on mutual funds, which provide the employees a wide exposure to the different types of bonds, stocks and other options, regardless of the amount of the contribution they make from their paycheck.

Though there is nothing wrong with investing in mutual funds, the number of choices available for the employees in mutual fund investments is the concern. The employers generally lock the employees’ contributions in unfavorable funds and sabotage their retirement prospects. However, if self-directed 401(k) is taken by the employees, they will not only be able to build their own portfolio, but will be able to invest with their own free will.

Using Self-Directed 401(k) Savings for Retirement

The Solo 401(k) plans provide an opportunity to the contributors to turn their retirement accounts into Self-Directed accounts and stay assured for enjoying full financial dependency during their post-retirement days. There is a wide range of investment options including real estate, LLCs, LPs, currency, futures, options, annuities, commercial paper and others that can add to the retirement benefits of an individual’s retirement account.

For those who already have individual retirement accounts (IRA) like traditional IRAs, SEP IRAs, Roth IRAs, Qualified Annuities, Money Purchase Plans, 401(k)s and 403(b)s and others, moving their account to a Self-Directed 401(k) account would definitely be helpful. The only downside of this plan is that some people avoid being in charge of their personal retirement investments. For others, who are willing to participate in retirement investing activities and make their own decisions, there are absolutely no downsides.

Benefits of Retiring in Thailand

With the median IRA figures of the US households touching south near retirement and the over-dependency on the social security benefits, the only way to lead a comfortable life is to move to a low cost country, like Thailand. As compared to the US, Thailand enjoys a low cost of living, which, in turn, makes it a country that people contemplate as a retirement paradise.

A person can purchase a luxurious one-bedroom condominium in the Chiang Mai region for about $55000 or rent it at a cost of $500 per month. With the same amount of money, one wouldn’t be able to find a decent accommodation even in the remotest places of the US. Moreover, the cost of food, transportation and other basic necessities is quite low in Thailand, thereby making it easy for the expats to lead a comfortable life in a budget of about $1500 per month.

On the whole, in order to enjoy a comfortable lifestyle during the post-retirement days, investing in Self-Directed 401(k) plans and planning to flee to places like Thailand are the ideal options to concentrate upon.



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