Is Wall Street a scam?! Well, actually, while we might believe it is at times, most likely it is not. But with all the rash of problems that Wall Street has realized in the last 12 months, one does definitely wonder. And, since there are plenty of articles devoted to the woes of Wall Street, this one will not do that but, rather, take a higher road of education on what options are available to individuals who wish to protect, nurture and grow their retirement accounts.

It is literally amazing and not so amazing that most individuals (estimated at 98% percent of individuals) do not realize that they are empowered to self-direct their own retirement accounts. Surprising in the sense that this option has been available to them since 1975 and very few know about it. Not surprising in that certain professionals in the financial world feel that it is not in THEIR financial interests to inform people that this option exists.

Now, yes, there are exceptions to individuals not being allowed to do self-direct -- chiefly, that individuals cannot, as a general rule, self-direct retirement accounts from employer plans where they are currently employed.

What is a self-directed IRA or 401K? Well, let's use simple terms. It is merely the opportunity to invest your retirement account assets into practically anything you feel is a good investment. Now, as with all things in life, there are certain investments (i.e., life insurance contracts, collectibles defined under IRS Code) that are not permitted. There are additional restrictions placed so that people do not enter into self-dealing, prohibited transactions and investing with disqualified individuals.

BUT, here is the simple truth: If you could direct your own retirement assets into a plethora of investment opportunities, wouldn't you at least want to consider this? Also, if your retirement account was established in such a way where you could have the best of both worlds in one account -- the ability to invest in both "traditional" (e.g., stocks, bonds, mutuals funds) and "non-traditional" (e.g., real estate, hard money loans) assets -- wouldn't this be the cat's meow (technical term there folks!). Not only is this possible, but it is totally legal; provided, of course, that all IRS and Department of Labor regulations are met and adhered to.

A great quote from Tama McAleese, CFP in Get Rich Slow, notes The Million(s) Dollar Mistake that most individuals can make. McAleese states, "As a result (of others controlling your money), you've been lulled into a sense of security, believing someone else is standing guard over your hard-earned money and, thus, guaranteeing your financial future."

As a simple real-life example of this, an individual that I am quite familiar with had an IRA that held a value of approximately $150,000 12 months ago. Currently, his account value is a little over $53,000! Now, to be sure, self-directing your retirement account assets does not in any way ensure that you will make money or experience greater results, but it puts the power back with the individual who actually CARES about how their retirement account is performing -- the power to research their own investment opportunities and invest in what they believe to be in their short and long-term financial interests.

An amazing statistic from the Investment Company Institute and Internal Revenue Service Statistics of Income Division found that at the end of the 2004 year, there was in excess of $3.475 trillion of retirement plan assets. Of this money, 83%.....that's right, 83% of those funds were invested in stocks and mutual funds. Less than 1% was invested in real estate....even though much of the self-made wealth in this country was as a result of investing in and owning real estate. Think about it. Also, of that "paltry" $3.475 trillion dollars in retirement plan assets invested into stocks and mutual funds, do you think that commissions were paid to brokers....whether an individual achieved gains or lost money? You know the answer to that.

Oh, you might be thinking that the aforementioned statistic goes back to the end of the 2004 year and things have drastically changed as of September 2008?! Well consider this statistic as noted by a July 1, 2008 article in the USA Today which stated that in 2008, the market has lost 2.1 trillion dollars in value, $1.4 trillion in the month of June, alone.

Finally, if anyone believes that the "average" retiree is retiring with financial dignity, consider an important statistic as first published in the November 27, 2005 edition of the Christian Science Monitor. This article identified that the median income of individuals 65 and over was just $15,199. And, unfortunately, a large portion of this income came from social security.

Let's face it.....Hope is not a Strategy! If you are an individual who has done well with the traditional offerings of stocks and mutual funds, congratulations! But, for those of you who haven't and are looking for options and further diversification strategies to the "traditional" world of investing outside of these asset classes, consider self-direction. It may be more lucrative and you won't be relying on someone else to control YOUR MONEY.

John R. Park is President of PGI SelfDirected and co-founding Partner of Fulcrum Investment Network.