Solo 401(k) Success Story: Diversifying Beyond Wall Street with Broad Financial

Key Points 

• John, a self-employed software developer, was seeking greater control and diversification in his retirement portfolio beyond traditional Wall Street investments.
• Broad Financial’s Solo 401(k) allowed John to seamlessly manage both traditional investments (like stocks and bonds) and alternative assets (such as real estate and cryptocurrency) in one account.
• By leveraging both Traditional and Roth funds under the Solo 401(k), John gained flexibility and tax advantages, allowing him to actively pursue his investment strategy with ease and efficiency.

A Self-Directed Solo 401(k) provides self-employed individuals with an unparalleled level of control over their retirement investments. Offering the flexibility to invest in not only Wall Street products, but also a world of alternative assets, all with tax advantages, this unique account can completely change your perspective of investing for retirement. 

One of the most appealing features of Broad Financial’s Self-Directed Solo 401(k) is the ability to combine Traditional and Roth funds under one account, giving investors like John, a freelance software developer, the freedom to pursue a wide range of investment opportunities with ease. This case study explores how John uses Broad Financial’s Solo 401(k) to diversify his retirement portfolio like he never thought possible.

The Vision

John is a successful self-employed individual who has spent years building his career as a freelance software developer. Like many professionals, John has invested in traditional Wall Street products through his retirement account, primarily focusing on stocks and bonds. However, in recent years, he has grown increasingly interested in diversifying his portfolio by investing in real estate and cryptocurrencies. As someone who values control over his financial future, John is eager to find a retirement plan that can support his broader investment goals.

The Challenge

While John’s current Traditional IRA allows him to invest in Wall Street, it doesn't provide the flexibility he needs to expand into real estate and crypto—at least not with tax advantages. The lack of true diversity in his existing retirement plan prevents him from tapping into new markets that could strengthen his financial future. He's a little frustrated by the limitations and unsure of how to begin incorporating new asset classes into his retirement strategy. John also wants to use both Traditional and Roth funds but struggles to find a solution that offers the kind of investment diversity and control he seeks within a single account. This lack of flexibility is hindering his efforts to pursue his vision for investing.

The Solution

Enter Broad Financial’s Solo 401(k) with checkbook control. This plan provides John with everything he needs: the ability to invest in traditional Wall Street products and alternative assets including real estate and cryptocurrency—all within one account. The Solo 401(k) structure allows John to place tax-deferred investments through a Traditional Solo 401(k) and receive tax-free growth through a Roth Solo 401(k), giving him the best of both worlds.

By establishing a Checkbook Solo 401(k) with Broad Financial, John can open a checking account for the plan, which enables him to invest directly in alternative assets, such as purchasing real estate or buying crypto, in real time. The plan offers the ultimate control, empowering him to make investment decisions quickly and efficiently.

The Results

After rolling over his existing Traditional IRA’s funds into a Broad Financial Solo 401(k), John now enjoys a diversified retirement portfolio. He holds both stocks and bonds as well as alternative assets, including a rental property and a growing cryptocurrency portfolio, all managed through his Solo 401(k) with checkbook control. The ability to invest freely has not only given John peace of mind but also enhanced his retirement savings strategy by allowing him to tap into multiple markets and asset types.

Additionally, John benefits from the Broad Financial advantage: transparent pricing, expert support, and a seamless setup process. The team at Broad Financial helped him navigate the complexities of setting up his Self-Directed Solo 401(k), ensuring he met all compliance requirements and maximized the tax advantages available to him.

Why Choose Broad Financial?

• One-Stop Shop: Whether you're focused on stocks or want to explore alternatives like real estate and crypto, Broad Financial’s Solo 401(k) can hold all your investments in one account.
• Checkbook Control: You’ll have total control over investment decisions and can complete everyday investment transactions in real time.
• Expert Support: Our team is always available to answer your questions.
• Transparent Pricing: With flat-rate fees and no hidden costs, you can run your account, your way, knowing there won’t be unexpected fees along the way.

With Broad Financial’s Solo 401(k), John has the level of control and flexibility he’s always wanted. Ready to take control over your retirement strategy? Schedule a call with us today!