Guidant Financial Group Blog

Although we own no crystal ball, Guidant tends to see trends develop before the general public. Last month Guidant Financial Group released statistics that stated a 131% increase in private loans originated through self-directed IRAs. That is a fascinating statistic because it shows how self-directed IRA investors are adapting to the ever-changing economic climate.

In addition to private lending, Guidant clients who responded to the survey also said there was an increase in alternative assets such as real estate (up 24% from 2005) and tax liens (up 341% for the same period). IRAs holding tax liens increased by a significant percentage: from 1.7% to 7.5%. But, although the percentage change was dramatic, the total number of self-directed investors actually pursuing this investment is still relatively small.

The trends we have seen with our 5,000+ clients prove that the flexibility of a self-directed IRA provides the IRA holder with the ability to diversify into unique investments that may not be as volatile as the stock market . . . or that are at least secured against real property. Tax liens, loans and real property are all interesting ways to generate wealth through a retirement plan.