Self-Directed Investment Outlook
The self-directed IRA market industry is continuing to grow as more investors are learning about all the possibilities and opportunities that are available:
Potential of the Self-directed IRA Industry
- There are more than 45 million IRAs in the US
- 96 to 97 percent of IRAs are held in traditional investments such as the stocks, bonds and mutual funds
- Less than 4 percent of all IRAs are self-directed
- 2 percent of all self directed IRAs are invested in real estate
- The percentage of self directed IRAs is expected to double in the next five years
- Retirement savings reached a record $16.4 trillion in 2006
- An estimated $2 trillion is entering the marketing in the next two years
- Retirement assets account for nearly 40% of household financial assets
Both small business and franchising ownership are growing year after. It was reported that:
Small Business and Franchising
- Small businesses are 99.7 percent of all employer firms
- Have generated 60 to 80 percent of net new jobs annually over the last decade
- Small Businesses employ half of all private sector employees
- Franchising is responsible for 10 percent of the private sector economy
- Franchising employs more than 18 million Americans
Real estate and similar investments provide investors with hard assets that they can control much more readily than the stock market:
Real Estate
- Tax liens routinely provide 15 to 36 percent returns per year
- According to foreclosure listing database RealtyTrac, 1.26 million foreclosure filings were reported in 2006, up 42 percent from 2005
References:
RealtyTrac, Forbes, bankrate.com, Retire Rich By: Nora Peterson, IRA123.com, IRAAA.org, Lien Exchange, Small Business Administration (SBA), Rogue Investor, and CNNMoney
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