Stock Market Got You Down?
Americans are taking control of their retirement by moving it out of the stock market and into alternative assets. Thanks to evolving technology, a surge in financial literacy, and a desire for more control, investors are embracing Self-Directed IRAs (SDIRAs) in growing numbers. These powerful tools let people break free from the stock market and invest directly in what they know—real estate, startups, private loans, precious metals, and more.
But with more freedom comes more responsibility—and, increasingly, more risk.
Why More Investors Are Choosing Self-Direction
A growing number of investors are managing their own portfolios. In 2024, Barron’s reported that one in three investors went fully self-directed, up from just 21% in 2019. Why the shift? Because investors want:
- Direct control over their retirement dollars
- Broader access to alternative assets
- Simple, affordable platforms with zero trading fees
- Strategies that align with their personal expertise and goals
Financial institutions are responding by expanding self-directed offerings—but savvy investors are moving faster, already leveraging their knowledge to grow wealth in ways Wall Street doesn’t touch.
What Makes a Self-Directed IRA So Powerful
With an SDIRA, you decide how to invest your retirement funds. That means:
- Real estate investors can buy rental properties, flip houses, or lend money secured by property.
- Entrepreneurs can invest in private businesses or pre-IPO startups.
- Alternative asset enthusiasts can purchase gold, cryptocurrency, tax liens, and more.
The SDIRA gives you flexibility, potential tax advantages, and a chance to put your investing knowledge to work inside a retirement account.
But Be Warned—Fraudsters Are Targeting SDIRAs
As SDIRAs gain popularity, scammers are taking notice. The SEC, FINRA, and NASAA have all issued alerts about rising fraud in this space. Why are SDIRA investors vulnerable?
- Custodians don’t vet investments. Scammers know this.
- High-risk, illiquid assets can trap your retirement savings.
- Promoters pitch fake deals through social media, webinars, and even fake custodians.
- Rollovers can be misused to steer investors into shady schemes.
Scammers often push gold, crypto, or “can’t-miss” private placements. They target retirees, new investors, and anyone looking to grow wealth fast. Don’t take the bait.
Protect Your SDIRA Like a Pro
Here’s how you can invest boldly—and safely:
- Do your own due diligence. Research every deal and every promoter.
- Understand your custodian’s role—they hold assets but don’t validate them.
- Stay skeptical of unsolicited pitches or high-pressure tactics.
- Use strong passwords, two-factor authentication, and account alerts.
- Consult a fiduciary advisor before making big moves.
Investopedia and Investor.gov both emphasize the importance of staying alert. You’re in the driver’s seat—make sure you know the road.
Own Your Financial Future—Responsibly
Self-directed IRAs open doors that traditional retirement accounts can’t. They empower you to invest in what you understand and believe in. But they also demand that you take the lead, do the research, and avoid shortcuts.
If you’re ready to self-direct, arm yourself with knowledge and surround yourself with trusted advisors. The opportunity is real—but so is the risk. With a thoughtful, proactive approach, you can turn your SDIRA into a powerful engine for long-term wealth.
uDirect IRA Services, LLC is here to help you build your retirement savings. We are not a fiduciary and we do not offer tax or legal advice. We do not recommend specific investments, rather we guide you through the process to self-direct your retirement savings into assets you choose. To get started, we offer a free consultation. Schedule yours HERE – To open an account, click HERE.
