Retirement Investing Strategies for Tax savings
Individual Retirement Accounts (IRA)
Individuals can invest in these offerings through IRAs. With the growth of online offerings many IRA custodians are creating services to make investment in these exclusive offerings more accessible. As Title III of the JOBS act has been passed Equity Crowdfunding for non-accredited investors has become possible. Invest through tax advantaged retirement accounts.
Self-directed Retirement Plans:
In order to gain tax efficiency with your investments retirement accounts are a great resource and self directed plans are a great resource for going it alone and gaining access to these high risks investments. SEC and IRS rules govern what can go into an Individual Retirement Accounts (IRA), and most IRA managers want, or require, you to invest in their own products. For example, an account managed by Vanguard will allow you to allocate your retirement savings into Vanguard funds. A self directed IRA can allow you control, because you take the fiduciary responsibility away from the manager — you are the manager.
There are numerous organizations, typically Trust companies, that manage the mechanics of investment accounts on behalf of others. While traditional Registered Investment Advisors (RIAs) can make money off the fees charged by the assets they manage, the fee structure in a self directed account without an advisor are often lower.
Goldstar and Rocket Dollar offers self-directed tax incentivized accounts. Companies that provide self-directed retirement accounts like IRAs are usually experts in managing the account itself. Additionally, management of custodial services required for the assets you hold and assistance with choosing among possible investments may be covered in self-directed RIAs. These services are paving the way for individuals to invest in startups through these investment vehicles through self-directed IRA accounts that allow for investing in debt and equity through online portals. They have created accounts to help facilitate these transactions.
RocketDollar - Self Directed IRA and 401ks enable you to invest in any asset class allowed by the IRS. Invest securely and easily in Real Estate, Startups, and more."Rocket Dollar helps you unlock your old 401(k)s and IRAs to tap as a new source of capital. You can continue to enjoy the tax benefits of retirement accounts while diversifying your portfolio to invest in alternative asset classes such as startups and real estate." shreas Matt Silk the CEO of TMW Capital.
We spoke with Josh Duckworth the Director of Marketing at GoldStar Trust about how they offer this. Gold Star Trust charges 25$ to create an IRA account and $65 per year to maintain the account. In addition to self-directed IRAs, Gold Star Trust offers a solution for escrow and payment services with fees starting at $500 per deal. Their recent launch of CrowdPay, escrow, payments, custody and tax reporting services can be done via API (Application Programming Interface).
Venture Capital Funds that Invest in Seed
Public Fund Investing: Equidate, SharesPost, SecondMarket
Individuals can decide to invest funds in alternative investment classes including real estate, commodities or private equity. Individual investors can use the above platforms to find investments and authorize the retirement (IRA or 401k) fund administrator or custodian to purchase them on your behalf. Some do the paperwork for you and actually permit you to write checks out of your IRA account to make a purchase. Once you have an account with a Self-Directed Investment authority it's really just a matter of paperwork and fund transfers. The process involves signing a subscription agreement or private placement memo (PPM).
Participation in investment crowdfunding is still currently limited to accredited investors across state lines (interstate), however, many states, have passed their own legislation opening up crowdfund investing to non-accredited investors within state lines.
Many of the above funds incur additional management fees which can reduce your returns. We offer solutions to analyze fees, performance and place and keep track of the investments.
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