Baby boomers are retiring at roughly 10,000 per day, and their $30 trillion in retirement assets could be part of an $84 trillion intergenerational wealth transfer over the next two decades, according to Cardone Capital. With market volatility, inflation pressures, and longer life expectancies challenging traditional retirement models, some investors are exploring alternatives to better protect assets and potentially boost returns.
Cardone Capital is opening its multifamily property strategy to investors through self-directed IRAs and 401(k)s. The approach, previously limited to high-net-worth clients, allows eligible accounts to invest directly in the firm's multifamily property portfolio. Benefits can include rental income distributions before traditional retirement age, potential appreciation of capital, inflation protection, and exposure to U.S. housing supply-demand fundamentals.
Self-directed IRAs have grown into a $1.3 trillion market, expanding about 30% annually. While they offer greater flexibility than traditional accounts, investors must follow IRS rules carefully, avoid personal use of the property, and ensure income and expenses flow through the IRA. Liquidity limitations, administrative fees, and independent verification of investment legitimacy are also important considerations.
Traditional retirement models relying on a 60/40 stock-and-bond allocation designed for 7%–8% annual returns are being reassessed. Sequence risk — where withdrawals during downturns can permanently affect retirement outcomes — combined with concentrated stock positions and volatile bond yields, has prompted many to consider diversification. In addition, Cardone Capital reports that a majority of retirement account holders are unaware of fees or even the exact investments in their portfolios.
"The traditional retirement model assumes bond yields and stock market stability we can no longer count on," said Ryan Tseko, executive vice president of Cardone Capital. "Investors are increasingly asking whether staying 100% in public markets meets their retirement needs."
Other custodians, including Equity Trust and STRATA Trust, also facilitate self-directed IRA investments in real estate and alternative assets, offering similar opportunities for investors seeking diversification beyond traditional markets.
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