Ownership in a private company, LLC, C-Corp, LP, etc.
Be an investor in an entity that is gathering investors to buy a high dollar asset.
Pre-IPO Companies, Crowdfunding, and more
|Step 1||Open and fund your IRA – It takes New Direction IRA two business days to open your account once your application is in the office. Then you will fund the account with a rollover, transfer, and/or contribution. This may take several weeks, so plan for that in your timetable.|
|Step 2||Perform due dilligence and choose a company/entity to invest in.|
|Step 3||Fill out a Buy Direction Letter along with documentation of the investment – (e.g. company operating agreement, strock certificates, etc.) and submit it to New Direction.|
|Step 4||New Direction sends money from your IRA to the company to complete the acquisition.|
Learn the secret to private equity investing with tax advantages
Surprising account types that can be self-directed to buy private equity
Five most valuable investment tips for self-directed IRAs
Straight talk about the types of private equity your IRA can buy
Four powerful strategies for IRAs that have a small cash balance
Use IRS rules to limit the taxes you pay
Free your retirement account from Wall Street volatility
Learn little-known distribution strategies and considerations, and more!
It is the IRA holder's role to perform due diligence. New Direction IRA can service a private equity investment purchase with any private company/entity the IRA holder chooses. The IRA holder researches potential companies/entities and decides when they feel comfortable making the investment.
When considering investing in private companies or investing in private equity, the IRA holder might consider factors like competition analysis, past performance, background check of the company and/or principals, markets, and more. Many investors choose to consult a lawyer or trusted financial professional before making a private equity investment.
|Private Lending||Private Equity|
|Investee||Non-disqualified business/entity or individual||Non-disqualified business/entity|
|Asset Documentation||Your IRA and the borrower sign an agreement, often called a note, that outlines the specifics of the loan.||Equity may be represented in the form of shares of private stock or an ownership percentage.|
|How Your IRA Makes Money||The amount of interest (and points if there are any) you charge is how your self-directed IRA plan earns a profit.||Earns money based upon the performance of the business, from the sale of your IRA's ownership, or through the sale of the entire business at a later date.|