Self-Directed IRAs and Crowdfunding — A Combination of Investing Democratization Vehicles
In the investing arena of yesteryear, getting in on the next big thing was almost impossible unless you knew a guy who knew a guy. Equity crowdfunding brought regular folks into the game. Investors, accredited and non-accredited alike, were given the opportunity to purchase previously unavailable equity in pre-IPO businesses. Meanwhile, entrepreneurs had new options besides banging on the doors of venture capitalists and surrendering major stakes in their companies. In this regard, the rise of equity crowdfunding has democratized the start-up field by allowing willing participants on both sides of the table to make advantageous decisions.
In addition to offering a hands-on approach to retirement, self-directed IRAs allow investors to take control by combining their investing expertise with tax-deferred or tax-free benefits.
Self-directed retirement plans have provided a similar ethos of open participation. Tax-advantaged savings plans like IRAs, 401(k)s, and health savings accounts (HSAs) with publicly traded stocks and mutual funds are typically characterized by limited investor involvement and finite knowledge of held positions. In addition to offering a hands-on approach to retirement, self-directed IRAs allow investors to take control by combining their investing expertise with tax-deferred or tax-free benefits. Alternative investments like real estate, precious metals, and private equity — acquired via crowdfunding or otherwise — can be incorporated into self-directed retirement plans with minimal deviation from the standard business practices associated with those assets.
Even before crowdfunding platforms began to emerge, intelligent private equity decisions have produced remarkable results for IRA investors. Prominent stories of multi-million dollar IRAs have emerged over the last several years, prompting many to question how such wealth could accumulate with the relatively modest contribution limits of Traditional and Roth IRAs. In many cases, these savvy investors acquired positions in up and coming companies on behalf of their IRAs. Once those companies rose to meet their potentials, the shares were sold for a substantial — and potentially tax-free — profit. Today, equity crowdfunding provides a similar opportunity to all investors and not just the mega-wealthy.
Since 2003, New Direction IRA has proudly provided the framework for self-directed clients to take full advantage of everything alternative assets have to offer. With over 16,000 clients and nearly $1.8 billion in administered assets at New Direction IRA alone, retirement investors nationwide are beginning to turn away from Wall Street, utilize their business acumen, and trust the research of proven companies instead of the opinions of stock brokers.
The Republic platform already brings investors and issuers together with exceptional efficiency, and soon IRA investments will be optimized at the same level.
New Direction IRA is thrilled to build a relationship with Republic Crowdfunding to unite self-directed investing and equity crowdfunding. The Republic platform already brings investors and issuers together with exceptional efficiency, and soon IRA investments will be optimized at the same level. While creating your account with Republic, the team of professionals at New Direction IRA will seamlessly establish your IRA and help coordinate the transfer or rollover of other retirement money into your new account. Once your self-directed retirement plan is open and funded, you can allocate your retirement dollars toward any one of the exciting opportunities available through Republic with just the click of a mouse.
Originally published at republic.co.
