Investment Sponsors

What you'll find on this page:

If you are the sponsor or issuer of an alternative investment, you should know that self-directed retirement accounts could represent a major source of capital for the investments you sponsor.

Retirement account funds can't be used for current discretionary expenses—the funds are there strictly for investing or asset-related expenses.

Investor interest in alternative investments

Ever since the economic downturn, more investors have been looking for alternatives to the stock market for their retirement savings and investment accounts. As a result, alternative assets are more attractive to investors than ever before. Many investors haven't been aware that they can hold alternative assets in an IRA, but with greater interest in alternative investments, there's also greater awareness that they can invest in alternative assets in their IRAs or other retirement accounts.

Client benefits

Clients can diversify their investment portfolios and receive the same tax-deferral that they would with stocks or bonds in their IRAs, and for Roth IRAs, they can enjoy tax-free capital gains.

Using retirement funds as capital

The following is a short list of advantages of the IRA market as a source of capital to asset or fund sponsors:

  • There is more than $4.2 trillion in IRAs as of 2010
  • Most of this money is set aside by IRA owners strictly for investing and not for discretionary spending today
  • More than $250 billion in new money flows into IRAs each year from retirement plans as a result of rollovers from those who are retiring
  • Only 3% of IRA money is estimated to be invested outside the publicly-traded stock and bond markets
  • Unlike taxable investments, self-directed IRAs offer investors tax-deferred or tax-free growth

How PENSCO can help

Educate yourself about investing in alternative assets in self-directed retirement accounts. We've been educating professionals and investors for more than 20 years:

  • PENSCO provides extensive and inexpensive education to professionals and individuals alike on self-directed IRA investing.
  • In addition, we have considerable information on all aspects of self-directed investing, including materials that can assist you in both understanding the rules and positioning yourself to become an expert for your clients and prospects.
  • We conduct educational events each year to help you develop your ability to capture a larger share of business from self-directed IRAs and other retirement accounts.

Next steps

Submit your investment for administrative review.

About the document review process

Important items to note prior to any administrative review process:

  • The intended investors should have an open and funded account with PENSCO.
  • Read and carefully follow the appropriate checklist and instructions in the investment kit.
  • "Acceptance" does not mean "approval" and does not imply any endorsement, recommendation, and/or evaluation of the merit or risk of an investment. There is no charge for this review process.
  • If you have questions concerning this submission and review process, please call the Private Placement department at 800-969-4472 to discuss your specific needs.

Once PENSCO receives all required documents

  1. Once we have received all of the required documents for the proposed investment, the documentation package will be sent to senior administrators for review. The reviewers may contact you with questions during this process.
  2. When the review is completed and the investment is either "Accepted", or "Declined", you will be notified.
  3. If the investment is "Accepted" then any investor with a PENSCO account may invest in it.