Four Common Retirement Fears – And How Self-Directed IRAs Can Help

Many Americans are feeling insecure about retirement. And it is no wonder. The days of staying with one company for forty-five years and then enjoying a comfortable retirement thanks to a generous pension are no longer the norm. Plus, everyone hears those rumors—true or not—that Social Security might not be around (at least in its present form) when it is their turn to collect from it.  A Self-Directed IRA may be able to help.

Add to those worries an unpredictable stock market and “safe” investments like treasury bills and CDs that do not yield enough to keep up with moderate inflation, and it is easy to understand why there’s little peace of mind for future retirees.

But there is hope for safeguarding your plans for the future. It is called a Self-Directed IRA, and it gives retirement investors more options—private stock, real estate, precious metals, and more—from which to diversify and gain some sense of security.

Take a look at how Self-Directed IRAs can help you and other investors overcome many of those common fears about retirement:

Inflation will devastate my savings

Every one of us has experienced inflation. Here’s an example: Five years ago, you set aside $18,000 in your savings account for your next car. Today, that same car costs $21,000, while your money has “grown” to $18,050! Your dollars are less valuable than they were five years ago, and your savings could not keep up with inflation.

Traditional IRA investments such as stock, bonds, and CDs usually lose money when inflation is high. Conversely, physical assets like real estate and gold will typically maintain their value during inflationary times. Diversifying into these physical assets through a Self-Directed IRA can help you protect your retirement funds from inflation.

The stock market will collapse, and I will lose everything

Many investors still feel the pain of watching their portfolios cut in half during the stock market collapse of 2008. The fear of it happening again is magnified because now they are ten years closer to retirement. And while 2008 was an extreme case, downturns in the market occur regularly, and it is next to impossible to predict how any future corrections will impact your portfolio.

Self-Directed IRAs give you more investment options to expand your portfolio into different asset groups. This diversified investment tactic can protect your investments by reducing risk—some of your assets may decrease in value while others remain stable or increase. That is why it is important to have asset classes that are complimentary. For instance, gold compliments stocks because there is very little correlation between the two. In other words, when stocks are struggling, gold is shining.

I will not have sufficient income in retirement

After you retire, you will be counting on your savings to generate income for you. Many retirees turn to bonds and CDs because they believe these are low-risk alternatives. Unfortunately, they do not produce enough income to keep up with inflation, so these investors end up trading one risk for another.

One investment that’s available with a Self-Directed IRA, real estate, is an excellent option for generating streams of income. Investment properties can be one good option for post-retirement income streams. Investment properties can create a reliable rental income that is typically higher than those you would earn from the low-risk choices. And unlike stocks, you need not be concerned with market volatility.

I have trouble understanding my investments

Stocks, bonds, and other financial assets are complex, and they can be difficult for the average retirement investor to comprehend. Just tune in to one of the financial channels and listen to the experts. Even they cannot agree on which stock is your best investment choice.

Physical assets, like real estate and precious metals, are easier to understand. Everyone has seen, touched, and experienced these during their lifetime. And with a Self-Directed IRA, you can shift some of your funds into these assets to give yourself more confidence in your overall portfolio.

At American IRA, we believe that a diversified Self-Directed IRA is the best vehicle for growing your retirement account. And we have the experience to handle your transactions, no matter which of the various options you choose to utilize.

Interested in learning more about Self-Directed IRAs?  Contact American IRA, LLC at 866-7500-IRA (472) for a free consultation.  Download our free guides or visit us online at

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