On the pattering heels of the Crowdfunding revolution, comes the insertion of self-directed IRA investing. Not content to sit on the sidelines, and perhaps goaded by the excessive fees associated with saving for retirement, the community or crowd, is taking matters into their own hands.
It’s about time!
Self-directed IRA Investing
The IRA has been around since the 1970’s and 401k’s have been around since the early 1980’s. Today individuals can invest their IRA funds in a number of alternative investment classes, including real estate, precious metals or private debt/equity.
Just so we’re clear, I’m not an investment advisor and even if my nose is stuck in an iPad (a lot) learning tons of perhaps useful info, it doesn’t make me an authority. So make sure to seek advice from the experts. Better yet, you can join Breakaway and Accuplan on October 28th at 11 AM PDT and learn the latest tactics and tips for investing with your self-directed IRA by signing up for our webinar:
Here’s what I know so far: Basically, you as an individual investor – probably interested in controlling your own destiny (and fees!), can seek-out investment opportunities like real estate, private businesses or even precious metals and can now authorize the administrator or custodian of your IRA (or 401k) to purchase them on your behalf (or on the behalf of the IRA/401k).
It Gets Better
Now that’s pretty awesome, but it gets even better. Here’s why: Add Crowdfunding to the mix. It’s a method for everyday people (both accredited and non-accredited investors, under certain conditions) can now invest in companies or real estate offerings. Some brief history: In April of 2012, Obama signed the JOBS Act that, among other things, opened the door for the general public to invest in startups and real estate ventures.
The self-directed investing concept is a one-two punch recipe that combines your IRA/401k and ample crowdfunding opportunities, making you an investing powerhouse!
Depending on the arrangements with your custodian, they will do the paperwork or actually permit you to write checks out of your IRA account to make the purchase. Once you have an account with a Self-Directed Investment house, it’s really just a matter of performing your due diligence, filing out the appropriate paperwork and transferring funds by signing a subscription agreement or private placement memo (PPM) for instance.
Tipping the Scale
This is only the tip of the iceberg. Hopefully this information is helpful. Feel free to share the excitement and explore the nuances that are unfolding on the crowdfunding horizon. Indeed we are making history as thought leaders and visionaries usher in new ways of raising business capital. Crowdfunding is tipping the scale for the business community to reach out and turn social capital into business capital. The financial status quo is changing. Are you ready?
To learn more, join us for our next webinar.