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Need to Raise Funds? Don’t Overlook IRA Investors


  |  By Christopher Orr, SDIP

Did you know that Americans hold approximately $7.3 trillion in IRAs,[1] and it is estimated that 2% -- or $146 billion -- of those funds are held in self-directed IRAs in assets such as private equity and real estate

Despite the popularity of self-directed IRAs, sponsors seeking to raise money very rarely consider retirement dollars when looking to fund an offering.

But using retirement dollars to invest in these private equity opportunities mean that investors get the added benefit of investing with tax-advantaged dollars. With a traditional IRA, investors can defer capital gains taxes until it's time to take distributions. In a Roth IRA, account holders can avoid taxes on distributions and capital gains.

Retirement funds can also be a good source of capital for fundraisers because they tend to have inherently longer time horizons, which match the longer holding periods required of many private equity investments. Because investors can face penalties if they take withdrawals from their IRA prior to turning 59½, many choose to reinvest their earnings. This could provide you with a source of ongoing capital.

If you want to find out more, sign up to participate in our webinar on April 29. I'll be discussing how fundraisers can access this billion dollar source of capital, and I will explain how to determine if the investment you’re offering is eligible to raise IRA funds. I'll also outline the laws and regulations that your investors will need to keep in mind if they want to use their IRA funds to invest in your opportunity.

But because we know that many fundraisers and entrepreneurs have questions when it comes to raising IRA funds, we will devote a large portion of the webinar to Q&A. Don't miss this opportunity to have you questions answered when it comes to learning about the potential capital available through self-directed IRAs.

If you can't attend the webinar, download our guide on how to expand your capital raising through self-directed IRAs.

[1] Investment Company Institute data as of Dec 31, 2014

This Blog does not provide investment, tax, or legal advice nor does it evaluate, recommend or endorse any advisory firm or investment vehicle. Investments are not FDIC insured and are subject to risk, including the loss of principal.

PENSCO Trust Company performs the duties of an independent custodian of assets for self-directed individual and business retirement accounts and does not provide investment advice, sell investments or offer any tax or legal advice. Clients or potential clients are advised to perform their own due diligence in choosing any investment opportunity as well as selecting any professional to assist them with an investment opportunity. Alternative investments are not FDIC insured and are subject to risk, including loss of principal. Other than the Opus Affiliates, PENSCO is not affiliated with any financial professional, investment, investment sponsor, or investment, tax or legal advisor.