There has been a lot of interest in venture investing in the past couple of years. While most traditional VCs and PE firms tend to get involved with growth companies in later stages, angel investments tend to help entrepreneurs in the very early stages of their company’s life. A lot of entrepreneurs typically start with a small capital raised through friends and family, and that typically leads to angel investors as the next step. What most entrepreneurs don’t realize is the incredible market that is available to them in those very early stages of their company’s life, and that is the retirement market. There are many diverse types of alternative assets permissible in retirement plans, and angel investing is one of them.
The IRA market as a whole is a $7 trillion+ market that is available to entrepreneurs if they know how to access it. What most of them don’t realize is the fact that they are already speaking to the correct people who have retirement accounts they just don’t realize that retirement funds can be used to invest in their businesses. It is a win-win situation as the entrepreneurs get the needed capital to grow or continue their new business venture, and the dividends from the investment go back to the investor’s IRA tax-deferred or even tax-free.
Self-directed retirement plans allow plan owners to choose their own investments to grow retirement income. These are the people who like control over their own retirement funds. They have the freedom to invest in things they understand and also in assets they want to explore. Alternative assets allowed in self-directed plans are plentiful and include angel investments, real estate, precious metals, private equity, hedge funds—and much more.
At Midland Trust, we help a multitude of angels and entrepreneurs make investments through retirement accounts daily. The question we get often from entrepreneurs is, “How do I find these IRA investors?” The answer is very simple: if you are talking to any investor, you are most likely talking to an IRA investor. You as the entrepreneur just need to bring it up, as most people don’t realize they can use their retirement funds for these types of investments.
Our staff at Midland has decades of experience and expertise in this industry and we enjoy helping individuals find the incredible freedom that self-directed IRAs and other plans offer. If you’d like to take control of your own retirement planning future, contact us today.