Equity Trust Company: Complaints About Traditional IRA, 401(k) Options Abound

Investors have long argued over whether the IRA or the 401(k) is really the best retirement investment vehicle—but according to Equity Trust Company, both have their faults.

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Equity Trust Company

Feb 19, 2013, 06:00 ET

NEW YORK, Feb. 19, 2013 /PRNewswire-iReach/ -- Investors have long debated over the relative pros and cons of different retirement vehicles, in particular the IRA and the 401(k). According to a recent article from Opposing Views that debate is unlikely to subside any time soon. The Opposing Views article makes note of some of the key distinctions between these two different retirement accounts; it has won the attention of Equity Trust Company, which offers investors options for establishing self-directed retirement accounts. Equity Trust Company has responded to the Opposing Views article with a new statement to the press.

According to the statement from Equity Trust Company, complaints about traditional retirement accounts abound, and generally stem from the limited options that they provide to investors. The company notes that self-directed retirement accounts can provide investors with greater liberty to invest as they see fit.

"When investors are comparing the benefits of IRAs and 401(k)s, they should remember that despite their differences, it is perfectly legal to invest in alternatives such as real estate, tax liens, and precious metals with both types of retirement accounts," the company notes. The way to make these unconventional investments is to ensure that the retirement account is self-directed. "People often complain about limited investment options, but with a self-directed IRA or self-directed 401(k), you can invest in assets beyond just stocks, bonds and mutual funds."

Indeed, Equity Trust Company is devoted to helping investors break away from the limitations of stock-and-bond investments. Self-directed retirement accounts, like the ones Equity Trust Company offers, can allow investors to put their money into foreign currencies, properties, and more.

Most importantly, investors do have some limitations when it comes to self-directed retirement investments. A few particular kinds of investment are prohibited by the IRS. Generally speaking, however, self-directed accounts allow for more flexibility that conventional retirement accounts do not offer.

Both self-directed IRAs and self-directed 401(k)s are available, but, as the Opposing Views article notes, it is important for investors to familiarize themselves with the critical differences between these two types of retirement accounts. The article outlines the differences between the two, in such categories as tax benefits, money withdrawals, contributions, and more. Ultimately, the article does not recommend one over the other, but simply urges investors to understand the options that are available to them—a point on which Equity Trust Company agrees.

ABOUT:

Equity Trust Company is the country's leading provider of self-directed IRAs and 401(k)s, with more than 130,000 clients in all 50 states and over $11 billion of retirement plan assets under administration. The company believes in self-directed retirement accounts as ideal vehicles for generating long-term wealth, as they allow investors the freedom to invest funds as they determine. At Equity Trust Company, complaints about restrictive conventional retirement programs are commonly heard, and the company responds to these complaints by providing information about the alternatives available through self-directed programs.

Media Contact: John Tabber, Mark-PR.com (678) 685-8304, [email protected]

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SOURCE Equity Trust Company