Have you been contemplating diving into the alternative investment space but haven’t yet taken the plunge? Now might be the perfect time, as the demand for alternative investments continues to escalate. The future of self-directed IRAs is looking good. Find out the trends and predictions below.
Speaking of Alternative Assets
Were you aware that the global market for alternative investments was valued at approximately $13.7 trillion at the end of 2021? From 2015 to 2021, the market expanded at an annual rate of 14.9%. Although this rate is anticipated to decrease slightly, the market value is expected to nearly double over the next 5 years. Looking ahead, experts project that from 2022 to 2027, the market will grow at 11.9% annually, potentially reaching $23.3 trillion globally by the end of 2027.
In light of these trends, the Financial Planning Association notes that investment professionals are increasingly vigilant about this market. As a result, they are conducting more thorough due diligence on diversifying their clients’ portfolios with alternative assets. Most professionals agree that they are likely 1–2 years away from integrating alternative assets, but they are actively monitoring the market. Furthermore, delving into alternative assets provides financial planners with diverse options, as these investments typically have longer holding periods and are not as liquid as traditional stocks or bonds.
Turning to Some of the Hottest SDIRA Assets*
Private Equity and Venture Capital are currently among the most sought-after asset classes. Expected to grow at an approximate rate of 19.1% per year over the next five years, this sector could reach around $4.17 trillion. Hedge funds and interval funds are particularly appealing to investors in this space due to their flexibility and user-friendly approach to alternative investments.
Private Debt
Private debt is projected to increase by 10.8% over the next five years. As traditional banking rates rise, private lending becomes an increasingly attractive option. With private lending, you have the autonomy to set your own terms and repayment structures, which can be particularly enticing for startups seeking loans. This approach can also assist homebuyers who struggle to meet the criteria for traditional loans. Typically, higher interest rates mean more stringent requirements for homebuyers’ approvals, thereby opening doors for private lending to support those in need.
A Partial List
For the purposes of your further research and retirement planning, here is a list of some of the asset classes self-directed savers use in their investment strategy:
Real Estate Investments
Precious Metals
Private Equity
Venture Capital
Tax Liens
Cryptocurrency
Precious Metals
Subscription Agreements
Debt Funds
Mobile Home Parks
Wondering How To Learn More?
It’s important to note that uDirect IRA Services is not a fiduciary and does not provide investment advice. If you’re seeking advice on alternative investments, a great resource is connecting with others who are actively investing in this space. You can meet these individuals at networking and MeetUp groups in your area.
So what’s holding you back? Reach out to uDirect today at info@uDirectira.com and discover how you can secure your share of this burgeoning alternative asset market.
References for Further Insight
– “Survey Finds Increasing Demand In Alternative Investments For Investors” at yahoo.com
– “Global alternatives market projected to double in size by 2027 – Preqin” at Pensions & Investments (pionline.com)
