Crowdfunding is reshaping the financial industry and has gained a lot of attention over the past few years. A growing number of investors have wondered if they can use their IRAs to invest through different crowdfunding platforms, and the answer is YES!
Midland IRA allows clients to invest through the platform of their choice, as long as the platform itself accepts IRAs.
Crowdfunding has been helping individuals, companies, and groups raise capital for decades. With a self-directed IRA, investors now have the freedom to take advantage of these opportunities, as well. Midland IRA makes it easy for clients to take control of their retirement funds and choose assets they desire as investments.
Benefits of Crowdfunding Platforms
Investors that want to invest in private deals typically have three options to do so. They can find and manage the investment alone, they can join a group that will source deals for them, or they can invest through a professional venture firm. All three of these options can be costly to individual investors. Crowdfunding makes the process efficient and accessible to the masses, so costs associated with these investments are typically less than sourcing these deals in the traditional manners.
Access to new opportunities:
Private companies are not allowed to announce that they are fundraising. Finding and having the opportunity to invest in privately-held ventures as an individual requires having a vast network that can connect them to these companies. Investing through a crowdfunding platform allows direct access to these investments.
Crowdfunding gives investors access to many different asset types including limited partnerships, LLCs, real estate, convertible notes, promissory notes, private stock, and much more.
FAQs on Crowdfunding in a Self-Directed IRA
- What is Crowdfunding?
- What is an accredited investor?
- Do I need to be an accredited investor to invest in crowdfunding using my IRA?
- How do I invest using crowdfunding with my IRA?
- What’s the difference between real estate syndication and crowdfunding?
- How do I find a good crowdfunding platform?
- Are crowdfunding investments ever taxed in an IRA?