Investors who use self-directed IRAs can use cash from the accounts to purchase shares in hedge funds. Investing in hedge funds can provide the account holders tax-sheltered retirement income and widespread diversity in their retirement portfolios.
Hedge fund investment strategies include:
Examples of hedge fund asset classes:
Hedge funds are typically made available only to sophisticated and accredited investors and, except in limited circumstances, cannot be offered or sold by means of general advertising. Hedge funds are subject to regulation by the U.S. Securities and Exchange Commission and/or the appropriate state securities administrator. Investors should retain independent financial and/or legal counsel to evaluate the risks and merits of investments in any hedge fund before investing.
BENEFITS OF HEDGE FUND INVESTING IN A SELF-DIRECTED IRA
- Self-directed IRAs provide tax-sheltered retirement income on returns and investments
- Hedge funds can add diversity to retirement portfolios
- Unlock your IRA from the traditional investment options of stocks and mutual funds
STEPS TO HEDGE FUND INVESTING
- Open a self-directed IRA account with Midland
- Fund the account by making a contribution or transferring funds from another plan to your Midland account
- Identify the hedge fund and contact the manager
- Complete a subscription agreement for the investment
- Instruct Midland with a letter of direction to send funds to the entity for purchase