Self-Directed IRAs

How Many Americans Would Benefit from a Self-Directed IRA?

Asking how many Americans might benefit from a Self-Directed IRA is a bit like asking how many Americans would benefit from saving for retirement: the answer is that many could, as long as they incorporate a strategy that makes sense for their long-term benefit. But just how many Americans use retirement accounts and how many use self-direction? And what kinds of benefits might Americans realize if they were to use a Self-Directed IRA? Let’s take a closer look.

How many Americans have a retirement plan at all?

According to Investopedia, 91% of workers who “have access to a workplace retirement plan are using it to save.” However, these numbers can be misleading because of how many people do not have access to such a plan. A 2019 Vanguard report found that “nearly half the population has no workplace savings vehicle of any kind in 2019.” In other words, those who do have a retirement savings vehicle do use it—but many of us do not.

What that means is that many people are out there planning for retirement without a safety net. It’s no wonder the “the mean retirement savings of working households age 32 to 61 is $95,776, according to the Economic Policy Institute.” Although that number includes a wide age selection, it does reflect that maybe Americans could be doing better—especially if many of us do not have a retirement plan of our own.

How a Self-Directed IRA Helps Americans Retire

With that in mind, what might it mean for an American to have a Self-Directed IRA? There are numerous benefits:

  • Carrying an account with you. As we saw above, those that do have retirement plans are able to save money into it, especially with employer help. But with those who do not, it’s far more likely that they do not save much retirement money at all. The mere act of having a retirement account can be a tremendous benefit to people who do not otherwise have the incentive to save. That means that a Self-Directed IRA—an account that a retirement investor can have independent of their job—might be a good incentive to start saving.
  • Tax protections. A Self-Directed IRA is not a unique IRA account. For example, there’s nothing in a Self-Directed Roth IRA that makes it separate from a Roth IRA of any kind. Rather, it’s in the way the investor structures their plans for investing. That means they can utilize the same tax protections in a Roth IRA they would otherwise use. You do not have to be a special person with unique circumstances or a unique investor—you just have to qualify.
  • For those investors who worry about putting money away because they anticipate a dip in the stock market, a Self-Directed IRA can be a tremendous benefit. It means that they can start saving money without relying on these stock market returns. They can invest in real estate, precious metals, and all sorts of other investments. A higher range of options not only helps diversify risk, but helps any investor understand that they can have a good entry point into a lifetime of savings if they are willing to look at the options available.

There are millions of Americans who could potentially benefit from opening a Self-Directed IRA. But as the statistics show, the most important thing is not just having an IRA but being able to save through it. That means investors need confidence in their retirement plan, and that starts with understanding Self-Directed IRA options. 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