Understanding how investors are using self-directed IRAs to access alternative investments
STRATA Trust Company conducted its fourth Self-Directed IRA Investor Survey in July 2025. The survey was distributed to self-directed IRA accountholders who collectively have invested $3B in private equity, private debt or credit, and real estate. Nearly 700 investors participated, sharing insights on how they are prioritizing private investments within their broader retirement strategies.
The 2025 STRATA Trust Company Investor Survey examines how these investors are responding to economic uncertainty, reassessing their tolerance for risk, and repositioning their portfolios. The findings provide meaningful perspective for custodians, RIAs, and wealth managers seeking to better understand how self-directed investors are allocating to alternatives, managing risk, and adapting to shifting market conditions.
SDIRA investors often serve as early indicators of emerging trends in private markets. Their allocation decisions and sentiment provide a valuable window into how individual investors are shaping the future of retirement investing and how the broader custody and advisory industry can evolve to support them.
Cautious Optimism in an Uncertain Market
Macroeconomic factors continue to influence investor sentiment. Inflation, rising costs of capital, and global instability have created a more cautious environment, yet SDIRA investors are not pulling back. Instead, they are adjusting their allocation strategies while maintaining exposure to alternative assets.
In 2025, 38 percent of respondents cited overall investment risk as the greatest influence on their strategy, up from 30 percent in 2023. This increase points to heightened awareness of volatility but also to more deliberate risk management. Investors are balancing caution with opportunity, favoring assets they perceive as resilient over purely speculative options.
For financial professionals, this reflects a market segment that is learning to navigate uncertainty rather than retreat from it. For custodians, it reinforces the importance of flexible operational frameworks that can accommodate evolving investment types, documentation, and compliance needs.
The Role of SDIRAs in Diversified Retirement Portfolios
Most SDIRA investors view their accounts as part of a broader portfolio, not a standalone vehicle. Thirty-eight percent of survey participants reported holding less than 10 percent of their total retirement savings in an SDIRA, up from 28 percent in 2023. This increase suggests broader integration of self-directed strategies among investors who are also maintaining traditional IRAs, 401(k)s, or brokerage accounts.
Experience levels remain high. Nearly half of respondents have more than five years of self-directed investing experience, while only 8 percent are new to the space. The performance results are also notable: more than 80 percent reported returns above 5 percent in the past 12 to 24 months.
These findings suggest that SDIRA investors are not only experienced but increasingly methodical in how they use alternative assets to complement traditional holdings. For RIAs and wealth managers, it highlights an opportunity to provide guidance that bridges traditional and self-directed retirement planning. For custodians, it points to the growing expectation for institutional-grade service, digital tools, and transaction transparency that mirror what investors receive from mainstream financial platforms.
Sector Insights: Where Investors Are Allocating
SDIRA investors continue to pursue opportunities in alternative markets, but their preferences are shifting as they respond to changing economic conditions.
Real Estate
Real estate remains a core component of SDIRA portfolios, but allocation trends show clear adjustments. Higher borrowing costs and continued pressure in commercial real estate have reduced enthusiasm for certain property types. Allocations to both direct real estate holdings and syndications declined from 2023 levels. Residential investments, however, are showing modest recovery as investors seek smaller, more manageable projects.
For financial professionals, this pivot may represent a recalibration toward income-producing or short-duration investments rather than speculative development. Custodians may see smaller average transaction sizes but more overall volume as investors spread risk across multiple properties.
Private Equity
Private equity remains the leading alternative sector among SDIRA investors, with 71 percent allocating to it in 2025. Enthusiasm for venture capital has moderated, with 18 percent planning to prioritize it over the next 12 to 24 months compared to 22 percent in 2023. Investors appear
to be focusing on established private equity funds or direct investments with clearer performance histories rather than early-stage ventures.
For RIAs and custodians, this trend reinforces the need for streamlined processes to support capital calls, subscription documentation, and ongoing communication between investors and fund managers.
Healthcare and Medical Technology
Healthcare investments are gaining significant traction. Participation in this category doubled from 2023, with 10 percent of SDIRA investors now allocating to healthcare or medical technology. This growth reflects investor interest in sectors tied to demographic trends, innovation, and consistent demand.
For professionals in the custody and advisory space, this represents a continued broadening of what “alternative” means to individual investors. Healthcare-related private placements and funds often require greater administrative coordination, which highlights the importance of efficient documentation and compliance support.
ESG as a Steady but Secondary Filter
Roughly one-third of respondents continue to consider environmental, social, and governance (ESG) factors in their investment decisions. However, return potential and risk profile remain the dominant criteria for most investors. ESG considerations tend to serve as a screening tool rather than a primary driver of investment selection.
Investor Confidence and Retirement Readiness
Despite market challenges, investor confidence remains remarkably high. Ninety-four percent of respondents describe themselves as “very” or “somewhat” confident in their ability to retire on schedule. This finding is consistent across age groups and experience levels.
For RIAs and custodians alike, this confidence offers insight into investor psychology. Control and choice appear to be significant contributors to optimism. Investors who actively direct their own investments report feeling more engaged and secure about their future. This suggests that transparency, education, and responsive service are not just operational priorities but emotional drivers of investor satisfaction.
Custodians and financial professionals can build on this trust by reinforcing clarity in communications, improving digital interfaces, and offering resources that help investors feel informed at each step of the process.
SDIRA Investors as Early Market Signals
Self-directed investors frequently act as leading indicators of broader investment trends. Their willingness to explore new asset classes and structures provides an early view of where the retirement market may be headed.
The 2025 survey points to a more disciplined and analytical investor mindset. Many SDIRA investors are diversifying within alternatives rather than concentrating in a single sector. They are increasingly evaluating liquidity, due diligence standards, and long-term performance metrics—behavior that mirrors institutional investing.
For custodians and financial professionals, this signals an ongoing shift from transactional relationships to advisory and service partnerships built on data, insight, and education. Investors no longer see self-direction as a niche or high-risk activity. They see it as a tool for balance and opportunity within a comprehensive retirement plan.
Strategic Implications for Custodians and Financial Professionals
The 2025 findings highlight a market that is confident, selective, and increasingly sophisticated. To serve this investor base effectively, several priorities stand out:
- Diversification across account types is accelerating. Investors are managing assets across multiple platforms, which increases the importance of collaboration, standardized data exchange, and efficient transfer processes.
- Sector rotation will continue. The key for custodians and advisors is not predicting which sectors will lead, but ensuring their operations, platforms, and communication models can seamlessly adapt as investor interests change.
- Education remains critical. Investors value autonomy but still seek expert validation. Clear educational resources on asset eligibility, due diligence, and reporting can enhance investor confidence and reduce processing errors.
- Digital service is now an expectation. The standard for transaction management, document handling, and communication continues to rise. Custodians and RIAs who invest in technology that enables transparency and speed will gain a competitive advantage.
- Data-driven insight creates opportunity. Institutions that analyze and share aggregated investor behavior data can identify emerging patterns early and better align service models with client demand.
Why These Findings Matter
The self-directed IRA segment represents a growing area of investor interest, particularly among individuals who value flexibility, control, and access to private market opportunities. While SDIRAs account for a modest share of total retirement assets, their influence on innovation and investor expectations continues to expand.
For custodians, RIAs, and wealth managers, understanding SDIRA investor behavior is essential to anticipating how clients will expect to engage with all types of retirement accounts. The appetite for private investments, greater transparency, and personalized service is reshaping what investors consider a best-in-class retirement experience.
The 2025 STRATA SDIRA Investor Survey reinforces one clear conclusion: investor confidence remains strong, but expectations for technology, service, and partnership are even stronger. By studying how self-directed investors allocate capital, manage risk, and define success, financial professionals can better position themselves to meet the needs of an investor base that is redefining retirement planning and expanding the reach of alternative investing.
To explore the complete dataset and analysis, review the full 2025 STRATA SDIRA Investor Survey Report.