As an investment sponsor raising capital for startups, venture capital groups, and other private equity or debt investments, you rely on finding qualified investors. Many IRA owners have funds that are readily available for investing and are often seeking more personal, meaningful investment options and ways to diversify their portfolios. It’s a perfect match!

 

Substantial Available Assets

Allowing investors to use their SDIRAs to invest in your offering opens a large source of funding for your investment deals. Currently, IRAs hold over $12+ trillion in retirement savings.¹ IRAs tend to hold long-term, sticky assets, as investors wait until retirement to begin withdrawing from their tax-deferred accounts. Also, IRA assets will continue to grow at an exponential rate as baby boomers retire and younger generations continue to job hop. When people leave their former employers, most want to preserve the tax nature of their retirement plan savings and consolidate their accounts to reduce expenses and administrative tasks. IRAs are the go-to savings vehicle to help investors preserve and consolidate their tax-advantaged savings from a variety of sources.

Tax Options for Investors

IRAs are also valuable tax-planning tools for investors. Unlike a taxable account, a Traditional IRA allows investments to grow tax deferred year over year until removed from the IRA. With a Roth IRA, investment growth is not only tax-deferred, but tax-free if withdrawn through a qualified distribution in retirement.

Investors can also choose to pay tax on their Traditional IRA assets before they retire – or at any time – by converting their pre-tax savings to a Roth IRA. The converted assets will be taxable in the year converted, but future investment growth will be tax-free. Roth IRA owners are never required to withdraw these assets during their lifetime, making Roth IRAs an important element of retirement income and estate planning tax strategies. Your investment can be too—if held in an IRA.

Easy Investment Onboarding

For issuers and sponsors of investments, partnering with the right IRA custodian is essential. At STRATA, we keep track of all IRS compliance and reporting requirements for IRAs, facilitate IRA investment transactions, and handle IRA administrative functions. Establishing a relationship with an IRA custodian like STRATA can give you an edge when it comes to capital raising. Simply accepting investors’ retirement funds may introduce another funding source for an investor to consider—but we can also help streamline the process for investing SDIRA assets in your particular fund or entity. SDIRAs can be used for investing in nontraditional assets such as real estate, private equity LPs, LLCs, company stock, hedge funds, private debt, investment crowdfunding, structured settlements, and more. With STRATA’s online platform, your investors can open an IRA, electronically submit their documents for funding their IRA, and invest in your offering.

Learn More

See how other SDIRA investors leveraged their IRA throughout the pandemic and how this impacted their investment strategies in STRATA’s 2021 Self-Directed IRA Investor Survey Report. 

Self-directed IRAs are often an overlooked source of funding for investment sponsors. If you are raising capital for a Reg D, private equity, or debt investment, self-directed IRA options might be ideal for your investors.  Learn more about the benefits of tax-advantaged investing by talking to a self-directed IRA expert today at 866-979-1496—or you may submit your inquiries online. 

¹ Investment Company Institute, ICI Research Perspective, “The Role of IRAs in US Households’ Saving for Retirement,” January 2021