Embracing the Future of Self-Directed Retirement Accounts: The Universal IRA and Modern Portfolio Design 

The following was written by guest blogger Casey Roberts, Chief Business Development Officer at Equity Trust Company.

As the Chief Business Development Officer at Equity Trust, a leading self-directed IRA custodian, I find myself at a pivotal inflection point in my career. My journey, which began with years of consulting clients and managing financial advisors in the world of traditional investment approaches—stocks, bonds, mutual funds, separately managed accounts, and even life insurance—has more recently led me to the world of alternative assets.

Although I’m no longer providing advice or guidance, I am on a mission to introduce alternative assets to those seeking broader options for their retirement accounts. Interestingly, investor demand is growing. A 2022 PWC survey found that 62% of high-net-worth individuals are actively seeking to increase their exposure to alternative assets, driven by their desire for diversification.

For this reason, I’m excited to represent Equity Trust as we introduce the groundbreaking Universal IRA. This unique approach harmonizes traditional investment strategies with alternative markets, reflecting the evolving landscape of modern portfolio design. A concept that seemed inconceivable just a few years ago is now a reality, presenting nearly endless potential for retirement investing.

A new era of investment flexibility

For decades, my work centered around guiding clients through the intricacies of traditional investment vehicles. Stocks and bonds were the mainstays of portfolio design, offering a relatively straightforward path to diversification and risk management.

However, the financial landscape has shifted significantly. Today, investors are not only seeking greater flexibility but also looking to diversify into alternative markets such as real estate, private equity, and cryptocurrencies.

This shift has driven the creation of the Universal IRA, a retirement account that integrates these diverse asset classes and removes friction points that many investors find overwhelming.

The Universal IRA: A game changer

The Universal IRA represents a significant evolution in retirement account design. It is engineered to seamlessly incorporate both traditional investments and alternatives, addressing the growing demand for a more versatile approach to portfolio management. By removing the barriers traditionally associated with integrating alternative assets into retirement accounts, the Universal IRA empowers investors to explore opportunities beyond conventional markets.

Real estate, for instance, has long been a favored alternative investment for its potential for steady income and long-term appreciation. With the Universal IRA, investors can hold real estate investments directly within their retirement accounts, unlocking new possibilities for wealth growth.

Similarly, private equity and venture capital investments, which were once the domain of high-net-worth individuals and institutional investors, are now accessible through the Universal IRA, providing a broader range of growth potential. These assets, in addition to cryptocurrency and others, sit alongside a traditional brokerage account for simple self-directed management.

The role of alternatives in modern portfolio design

The integration of alternative investments into retirement accounts is not just a matter of convenience but a strategic shift in portfolio design. Modern portfolio theory traditionally emphasized diversification across traditional asset classes to manage risk and optimize returns.

However, the inclusion of alternative assets introduces new dimensions to this approach. Alternatives often exhibit low correlation with traditional markets, offering the potential to reduce overall portfolio volatility.

For example, cryptocurrencies, despite their volatility, can offer diversification benefits. Similarly, private equity investments can provide access to high-growth startups and innovative ventures that are not available through public markets. Real estate offers tangible assets with income potential and long-term value appreciation.

By incorporating these alternatives, investors can build more resilient and dynamic portfolios that are better equipped to navigate market fluctuations and seize emerging opportunities.

A journey of discovery and innovation

Transitioning from traditional financial consulting to advocating for the Universal IRA has been a profound journey. It has expanded my understanding of how modern portfolio design can be revolutionized by integrating alternatives. This evolution is not merely about adding new asset classes but about reimagining how individual investors approach retirement planning in a rapidly changing world.

The Universal IRA is not just a retirement account; it is a reflection of a broader trend toward more personalized and flexible investment solutions. It represents a commitment to innovation and a recognition that the future of retirement planning lies in embracing a diverse array of investment opportunities.

As I look forward to the continued development of the Universal IRA and its impact on the investment landscape, I am excited about the possibilities it opens up for investors seeking to build robust and adaptable portfolios. The journey has reinforced my belief that the future of finance lies in blending traditional wisdom with modern innovation, creating a more inclusive and forward-thinking approach to retirement accounts.

Equity Trust Company is a directed custodian and does not provide tax, legal or investment advice. Equity Trust Company is not a fiduciary and does not endorse, recommend, or opine on suitability of any specific asset class or investment. Any information communicated by Equity Trust is for educational purposes only, and should not be construed as tax, legal or investment advice. Investing involves risk, including possible loss of principal. Whenever making an investment decision, please consult with your tax attorney or financial professional.

ETC Brokerage Services provides self-directed brokerage services to individual retirement and other custodial accounts for which its affiliate, Equity Trust Company, serves as custodian. ETC Brokerage Services is a broker-dealer registered with the SEC and a member of SIPC and FINRA.

Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value.