Self-Directed Defined Benefit Pension Plans

Take Charge of Your Company’s Pension Assets!

In the real estate investor community, Self-directed IRA plans are a widely known way that investors can take charge of their retirement savings and put it work in financial alternatives and real estate. Pop culture brainwashes us into believing that we need to put our retirement savings into “Wall Street” IRA plans and 401(k) plans. It doesn’t have to be that way. With a Self-directed IRA, the investor directs the IRA custodian to make investments on their behalf. The IRA is on title as the owner of the property investment.

More sophisticated investors have taken the model one step further. They are running their investment businesses as businesses and have set up Self-directed 401(k) plans. The primary benefit of a self-directed 401(k) plan is that the maximum allowable deduction is much higher than for an Individual Retirement Account (IRA). Both the company and the individual are allowed to contribute to the Company’s 401(k).

IRA plans and 401(k) plans are “Defined Contribution” plans. And the government defines the maximum you can put into these tax-favored retirement savings plans.


Small Business owners have forgotten what it was like back in the old days. Back in the old days, companies offered Pension Plans. Pensions offered employees a portion of their salary (a Defined Benefit) in retirement in exchange for committing their careers to one employer.

Where did Pension plans go? Pensions disappeared after Congress authorized  IRA and 401(k) plans. Employers quickly realized that they could slash their labor costs and pass the retirement savings burden to the employee.

Nowadays there are very few employers left that still offer pensions.

Small business owners looking to save for their own retirement shouldn’t be concerned about “the expense” of offering a pension. That “Expense” is their own savings… on a tax-advantaged basis!

A defined benefit plan promises a specified monthly benefit at retirement.  The plan may state this promised benefit as an exact dollar amount, such as $5,000 per month at retirement.  Or, more commonly, it may calculate its benefit through a plan formula that considers such factors as salary and length of service.  Employer contributions are actuarially determined.  If you want to provide an employee with $5,000 per month in retirement, then you need to set aside some amount of money today given growth and time assumptions.


Just like the more well-known “Self-directed IRA” and “Self-directed 401(k), the “Self-directed” Defined Benefit Pension Plan puts YOU in control of your Company’s retirement plan.  You don’t HAVE to place your plan assets with traditional Wall Street brokerages. For most plan administrators and consultants, this is all they know. You need to work with a plan administrator that realizes Wall Street isn’t the only option AND has the actuarial experience to deal with financial alternatives and real estate.

Click the link to speak with a a Retirement Plan expert that can show you how you can (1) take control of your retirement savings, and (2) maximize the amount you can contribute on a tax-advantaged basis.

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