Opportunities for Financial Advisors in the ALTS Space
Historically, self-directed individual retirement accounts (SDIRAs) emerged to give individual investors a way to diversify their retirement holdings beyond publicly traded markets. In the years following the 2008 financial crisis, these accounts were heavily used for residential real estate—especially distressed assets that offered compelling opportunities for value and income.
But since then, the landscape has shifted dramatically. SDIRAs are no longer niche vehicles limited to real estate or precious metals. Today, they are increasingly used for private equity, private credit, real estate syndications, venture capital, digital assets, and more. The modern SDIRA has become a bridge between traditional retirement structures and the rapidly growing world of private and alternative investments.
And perhaps the most exciting evolution is how these accounts are now being used by financial advisors themselves—not just by individual investors.
A Misleading Name, A Powerful Tool
Despite the name “self-directed,” these accounts are not solely for do-it-yourself investors. In fact, many SDIRAs are managed in close collaboration with financial professionals. Advisors can use these accounts to help clients allocate funds into non-public investments that align with long-term goals—assets that aren't available through standard custodial IRAs or brokerage accounts.
What distinguishes SDIRAs is flexibility: they allow advisors to offer a wider range of strategies—particularly in the private market—while maintaining the tax-advantaged structure of an IRA. Working with an alternative investment custodian, advisors can maintain control over investment direction, client reporting, and integration with planning tools—without having to confine their clients to ETFs and mutual funds.
In essence, SDIRAs are not only viable for advisors—they’re becoming essential.
Real Enthusiasm from the Field
The growing demand for SDIRAs among advisors, accountants, and estate planners was clearly visible at the recent Triple Treat Mixer, co-hosted by CalCPA’s Peninsula/Silicon Valley Chapter, the Financial Planning Association, and a leading local estate planning council. Held in Silicon Valley, the event brought together a diverse and energized group of professionals from all three fields.
Conversations at the event revealed how eager professionals are to explore the intersection of tax planning, estate strategy, and private investment access. Many attendees were excited by the potential of SDIRAs to combine time-tested tax advantages with access to newer asset categories and alternative strategies.
This strong cross-disciplinary interest confirms what we've seen firsthand: self-directed IRAs are no longer on the fringes—they’re at the center of forward-thinking wealth planning.
Backed by Market Data and Regulation
The broader retirement account landscape is massive—IRAs held approximately $17 trillion in assets as of late 2024 (Investment Company Institute). While SDIRAs account for a smaller slice of that total, interest is accelerating due to client demand for diversification, income generation, and portfolio resilience.
Advisors should be aware that SDIRAs come with important regulatory considerations. The IRS prohibits certain transactions (e.g., self-dealing, investing in assets involving disqualified persons), and advisors must also comply with fiduciary standards set by the Department of Labor for retirement accounts. This includes acting in the client’s best interest and disclosing conflicts of interest.
Fortunately, modern SDIRA custodians—like Alts Custodian—are designed to help both investors and advisors stay compliant while streamlining reporting, titling, and transaction administration.
Conclusion: A Smarter Retirement Framework
The term “self-directed” may imply individual control, but in reality, SDIRAs are one of the most advisor-enabled vehicles in the retirement space today. They allow financial professionals to bring institutional-style investment strategies to retirement clients—whether through real estate, private funds, infrastructure, or other illiquid opportunities.
Events like the Triple Treat Mixer reinforce a clear takeaway: there is strong appetite among professionals to rethink retirement investing. With the right custodian and tools, financial advisors are uniquely positioned to lead that charge—delivering value, diversification, and deeper relationships through the smart use of SDIRAs.