Table of Contents
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Key Takeaways
- Self-Directed IRAs – Allow investment in startups, gold, real estate, and more
- Startup Equity – Greater control over assets with long-term growth potential
- Gold IRA Benefits – Consistent performance, inflation protection, and portfolio diversification
- Market Protection – Gold moves opposite to stocks, shielding assets from downturns
- Setup Process – Requires a custodian; fund via transfer or rollover from an existing IRA
An IRA allows you to save for retirement and invest your money in real estate, stocks and bonds, mutual funds, and more. You can also use your IRA assets to invest in startup equity, through startup funding platforms or “accelerators” that bring investors together and provide other services to new businesses. An IRA allows you to save for retirement and invest your money in real estate, stocks and bonds, mutual funds, and more. You can also use your IRA assets to invest in startup equity, through startup funding platforms or “accelerators” that bring investors together and provide other services to new businesses.
How Can You Use Your IRA to Fund Startups?
Investing in startups or precious metals such as gold and silver is not normally an option with traditional IRAs, but a self-directed IRA allows you to choose exactly where your funds are invested. You get far greater control over the division and investment of your assets, which makes this the perfect option for long-term startup investments.
Why Should You Invest in Startup Equity with a Gold IRA?
These are some of the main benefits of buying gold or other precious metals with a self-directed IRA:
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Consistent Market Performance
With high demand for the metal in emerging markets such as China, negative interest rates and rising levels of debt, the value of gold has grown tremendously and consistently in recent years. Gold has outperformed the stock market by over 300% in the past 10 years.
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Unaffected by Market Downfalls
Unlike mutual funds, stocks and bonds, gold is not affected by fluctuations in the market. It moves in the opposite direction to most other investment vehicles, which makes it less vulnerable to economic ups-and-downs. If you want to keep assets safe, gold is the way to go.
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Keeps Pace with Inflation
The price of gold has continued to rise throughout the years, keeping pace with the rising cost of living. Since it’s not subject to market fluctuations and the Government can’t just print more, gold is a lot more dependable and offers more purchasing power than paper money.
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Diversifies Your Investments
If you want to diversify your portfolio and balance high-risk investments with secure assets, purchasing gold is the right move. The precious metal offers more value and security than any other investment option, protecting your assets from market risk and fluctuations.
How Does the Process Work?
First, you need to set up a self-directed IRA with a custodian, which could be a bank, credit union, trust company, etc. The IRA custodian holds your assets, keeps a record of them and oversees the administration of your account. You can also create an underlying LLC (owned by the IRA). The LLC acts as the investment arm for your IRA. Using this method, there are precious metal investments you can take possession of and store where you wish.
You can move any portion of existing IRA assets into precious metals in two ways:
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Transferring to a Gold IRA
Assets need to move directly from one custodian to another when you transfer your existing IRA to a precious metals IRA, so you need a check from the old custodian made in the new custodian’s name instead of yours.
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Rolling Over to a Gold IRA
You can withdraw funds from one IRA account and move them to another. The rollover needs to be completed within 60 days to avoid being treated as an early distribution, and it can only be done once in 12 months for each IRA.
