Your Retirement May Be Growing — But Its Buying Power Is Shrinking

Why saving in traditional retirement accounts isn’t the same as investing for long-term security. 

Most professionals believe they’re doing the right thing. 

• They save consistently in 401(k)s and IRAs. 

• They invest in diversified stock-bond portfolios. 

• They trust long-term market returns to secure their future. 

But here’s the uncomfortable reality: 

A growing retirement balance does not guarantee a secure retirement. 

If your savings can’t keep up with inflation and currency dilution, you may be losing purchasing power — even while your account appears to be “up.” 

The Risk Most Retirement Planning Misses 

The real question isn’t how much your retirement account grows. 

It’s what that money will actually buy when you need it. 

According to U.S. government data, the dollar has lost over 85% of its purchasing power since 1971- not because people invested poorly, but because inflation quietly compounds over time. 

A retirement account can increase numerically and still fall behind in real-world terms. 

Why I Chose Ownership Over Passive Returns 

Earlier in my career, I made a decision that wasn’t conventional. 

I withdrew my retirement savings and invested directly into building equity. 

At the time, I didn’t use a Self-Directed IRA. I needed all my available capital to build. I was fully committed — all in. 

Looking back, the structure could have been more efficient. But the principle was clear: 

I wanted ownership, not just exposure. 

Returns Pay You. Equity Builds You. 

There’s a critical difference many investors overlook: 

Market investing often focuses on dividends, interest, and price appreciation 

Equity investing focuses on ownership in real businesses, real products, and long-term platforms 

Returns are typically taxed. 

Equity compounds. 

Returns depend on market behavior. 

Equity depends on execution, innovation, and demand. 

I wasn’t trying to beat the market. 

I was trying to build something that lasts. 

Why Real Products Matter More Than Paper Assets 

Owning equity in real operating businesses is fundamentally different from passively holding financial instruments. 

I focused on industries with durable demand, regardless of economic cycles. 

Healthcare stood out: 

• Non-cyclical demand 

• Demographic tailwinds 

• Innovation-driven growth 

• Long-term structural expansion 

That foundation supports long-term value creation and not just short-term yield. 

What I Would Do Differently Today 

If I were making the same decision today, I would structure it differently. 

A Self-Directed IRA (SDIRA) allows eligible investors to: 

• Invest retirement capital into private equity 

• Diversify beyond public markets 

• Potentially grow value tax-deferred or tax-free 

• Focus on ownership instead of income 

SDIRAs aren’t for everyone. They involve specific rules, fees, and prohibited transactions. Education and proper guidance matter. 

But they offer something traditional retirement accounts often don’t:  

Control. 

The Lesson That Changed How I Think About Retirement 

The greatest risk isn’t volatility. 

It’s believing you’re protected while your purchasing power quietly erodes. 

Saving is important, but saving alone is not investing. 

Long-term security comes from owning assets that endure beyond market cycles. 

Educational Resource 

If you want to learn how self-directed retirement accounts work and why some professionals use them to access private equity, you can explore resources here:  

👉 https://www.iraclub.com/partner/kicventures/  Disclosure

This content is for informational purposes only and does not constitute investment, tax, or legal advice. Investment opportunities involve risk, including the possible loss of principal. Investors should consult their own financial, tax, and legal advisors before making allocation decisions. Nothing herein constitutes an offer to sell or a solicitation to buy any security. Self-directed retirement strategies may not be appropriate for all investors