What can I invest in? How do I invest in it? What is the process?

What can I invest in?

Generally, any investment is permissible given the intention is to generate income or appreciation over a period of time.

A few examples include Private Equities, Private Stock, Futures/Forex Trading, Real Property, and Money Lending. Investments that are not permissible are identified by IRC Section 408 as collectibles and life insurance.

How do I invest in it?

The IRS does not “approve” investments but it does require a third-party administrator to be in place for any brokerage-type or non-brokerage (alternative assets) investments.

  • Investment-related documents will need to be properly titled: “Midland Trust Company as Custodian FBO Your Name # Account No.”
  • Midland will need to be connected with an investment-related contact such as the Fund Manager or Administrator, Broker, Realtor, Attorney
  • Once the investment is identified and contact with the appropriate parties has been made we will provide next steps to you.

What is the process?

Midland’s Process ensures compliance with IRS guidelines as well as having your approval.

  • A document packet will be sent to your email address on file via DocuSign
  • In most cases your verbal verification will be required.
  • Once documents are in good order, we have your authorization, the account is sufficiently funded, and our Compliance Team review is complete, Midland will schedule an outgoing wire to complete the investment transaction.
  • Typical turnaround time varies but 2-3 business days is standard.