Retirement Savings Options Beyond the 401(k) or IRA

Retirement Savings Options Beyond the 401(k) or IRA

Most people know that they must set aside as much money as possible to draw on in retirement when they are no longer actively earning an income. While many employers offer a 401(k) retirement savings account and self-employed individuals can open an Individual Retirement Account (IRA), these options aren’t appropriate for everyone. Some people may earn too much to take advantage of them and others simply want different or additional options. We explore several alternatives below.

Investment in Real Estate

Real estate can make an excellent investment, especially when it comes to saving for retirement. If you already have a 401(k) or an IRA, you should be able to access the real estate sector through mutual fund holdings. Financial experts commonly advise investors to buy a fund that invests money into a REIT, which stands for real estate investment trust. You don’t have to limit yourself to accounts within the United States either. A REIT can allow you to achieve global diversification while providing an inexpensive, liquid, and transparent way to invest.


One reason that people are drawn towards investing in a 401(k) or IRA is the benefit of tax-deferred savings. If you’re looking for investment options beyond these choices, you should know that annuities also offer tax-deferred retirement savings. Annuities also provide you with a variety of investment opportunities with either a variable interest rate tied to market performance, an index interest rate tied to the performance of a specific index, or a fixed interest rate. However, you need to weigh the benefits against the fact that no one can guarantee the performance of an annuity and only the insurance company issuing it can pay claims.

Become a Silent Partner or an Angel Investor

If you have some money set aside in a savings account, investing in a business that is already established might make sense for you. This doesn’t necessarily mean you need to run the business if you prefer to remain a silent partner. In this role, your liability for the business is limited to only the amount that you invested in it.

A riskier venture, but one that could provide greater financial resources for retirement, is to invest in a newly-formed company as an angel investor. New business owners often desire and seek out these types of investors on their own. You could earn sizable financial returns in exchange for your investment as well as have some say in how the company moves forward.

Stocks, Bonds, and Other Brokerage Accounts

Most banks and credit unions offer at least some brokerage accounts. These could include stocks, bonds, certificates of deposit, money market funds, and other more aggressive investment opportunities. You can also open a brokerage account through some online platforms or through your financial advisor. It’s always a good idea to speak to a banker or advisor since each type of account has different requirements, benefits, and drawbacks.

These are just three additional retirement options to consider.  If you’d like to discuss these or any other investment strategies, please request an appointment with an advisor at Aura Wealth, we would love to help.