Self-directed IRA or not

[Ryan Shanahan]

I'm trying to figure out if using an IRA makes sense.

Hypothetical situation:

$5,000 to invest

Yearly gain 10% = $500

Yearly IRA fee (Fundrise) = $125 or 25% of yearly gain

That seems like a hefty fee. Would that be made up over time with the tax benefits? 

Should I not consider a self-directed IRA with less than $10k to invest, due to the fees?