How Alternatives and Self-Directed Investing Reshape the IRA

A yellow piggy bank in a sea of purple ones.

Over the past decade, retirement investing has undergone a quiet but powerful transformation. Investors are no longer satisfied with portfolios limited to mutual funds and traditional market exposure.

Instead, many are seeking diversification, control and access to alternative assets — a shift that is accelerating the growth of self-directed IRAs (SDIRAs) and other flexible retirement structures.

A recent survey sent to more than 27,000 clients of the retirement platform IRA Financial, with more than 6,000 responses, offers a revealing look at how today's investors are thinking about their portfolios.

Article continues below

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor. Subscribe from just ~~$107.88~~ $24.99, plus get up to 4 Special Issues

CLICK FOR FREE ISSUE

https://cdn.mos.cms.futurecdn.net/flexiimages/y99mlvgqmn1763972420.png

Sign up for Kiplinger’s Free Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

The results suggest that demand for alternative investments is not a niche trend but part of a broader evolution in how Americans approach retirement planning.

Investors want access to alternative assets — without giving up public markets

Perhaps the most striking takeaway from the survey is that investors are not abandoning traditional markets — they are expanding beyond them.

About Adviser Intel

The author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

When asked what investments they were most interested in for 2026, respondents showed strong demand across both alternative and public asset classes:

Real estate: 58.5%
Public stocks and ETFs: 39.6%
Cryptocurrency: 32.2%
Private equity: 31.1%
Gold and precious metals: 28.5%
Promissory notes: 12.4%

The data reflects a growing belief that diversification now means blending traditional investments with alternative opportunities rather than choosing one over the other.

Real estate remains the most popular category, but interest in crypto, private equity and precious metals highlights how investors are seeking assets that may hedge inflation or offer differentiated return profiles.

This shift is influencing how retirement platforms evolve.

For example, in response to client demand, IRA Financial is launching an integrated investment experience in partnership with Interactive Brokers this month that allows investors to hold stocks, ETFs and alternative assets within one account.

Control and access — the primary drivers behind self-direction

The survey also revealed why investors first explored self-directed retirement strategies.

A significant 71.2% of respondents said they turned to self-direction because they wanted to invest in specific assets that traditional plans did not allow.

Another 46.1% cited the desire for greater control over investment decisions, while others pointed to diversification, fee reduction or referrals from trusted advisers.

These responses highlight a broader trend: Investors increasingly view retirement accounts as active investment vehicles rather than passive savings accounts. Traditional custodial restrictions, once considered standard, are now seen as barriers to opportunity.

Alternative assets are growing — but investors still value balance

Despite strong interest in alternatives, most respondents are not allocating their entire portfolios to non-traditional investments:

41.2% hold less than 25% of their assets in alternatives
30.6% allocate between 25% and 50%
Only 11.3% report portfolios heavily concentrated in alternatives

This distribution suggests that investors are not chasing speculation — they are building balanced portfolios that incorporate alternatives alongside traditional holdings.

A similar trend appears when looking at retirement account allocations. Nearly half of respondents reported holding between 25% and 75% of their total investments inside retirement accounts, indicating that tax-advantaged structures remain central to long-term planning.

Not just accredited investors — a broader investor base is emerging

One of the most interesting findings from the survey is the diversity of investor backgrounds.

While 56.4% of respondents identified as accredited investors, nearly half did not, demonstrating that interest in alternative assets is no longer limited to ultra-high-net-worth individuals.

Many investors who may not qualify for traditional private placements are still seeking exposure to real estate, crypto and other non-traditional investments through accessible structures.

Additionally, 77% of respondents described themselves as intermediate or advanced investors, reflecting a growing level of financial literacy among retirement savers.

Meanwhile, 35.1% of participants reported being retired, underscoring how self-direction is being used not just for growth but also for income generation and portfolio management later in life.

Why demand for self-directed IRAs is accelerating

Taken together, the survey results reveal several underlying forces driving the expansion of self-directed retirement investing.

First, investors want flexibility. They are looking for platforms that allow both traditional securities and alternative assets without requiring multiple accounts.

Second, they are increasingly aware of the role diversification plays in managing inflation, market volatility and long-term wealth preservation.

Finally, technology and education have lowered the barrier to entry, making self-direction more accessible than ever before.

A new era of retirement investing

The data from the survey paints a clear picture: Retirement investing is evolving. Investors are moving toward hybrid portfolios that combine public markets with real estate, crypto, private equity and other alternative assets, all within tax-advantaged structures.

As platforms continue to innovate, including new integrated solutions launching in 2026, the gap between traditional brokerage investing and self-directed strategies is likely to narrow even further.

For many investors, the future of retirement planning is not about choosing between stocks and alternatives. It is about having the freedom to invest in both, in one place, with full control over how their portfolios evolve over time.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

TOPICS

Adam Bergman is a tax and ERISA attorney, entrepreneur and one of the leading experts in self-directed retirement planning. He is the founder of IRA Financial, a financial services firm specializing in self-directed retirement accounts that allow individuals and small-business owners to invest retirement funds into alternative assets. Adam founded IRA Financial in 2010 after discovering firsthand how limited, expensive and outdated self-directed retirement solutions were, despite the flexibility permitted under the U.S. tax code.