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Use Your Self-Directed IRA to Invest In A Company

Crowdfunding Word Graph

Are you one of the many employees working for “the man”? Whether you have a boss you love or hate you probably at some point have dreamed of being your own boss. Going out and starting your own company and being your own boss does sound very appealing.  I think this is a very common thought because we feel like we work so hard day in and day out just to make the same salary day after day while the owner gets to take all the extra money our hard work made.

The reasons why we do or don’t make the jump to self employment is different for everyone. The great thing to know is that there are other options to those of us who haven’t taken the leap to be our own boss or own our own company. One of the options in particular that is a great option gives you that extra upswing possibilty without all the issues that come with owning a business. What is that option? It is crowdfunding.

Crowdfunding has become a huge industry for small businesses looking to raise some capital. It has especially grown because of the advent of the web. There are now plenty of internet crowdfunding sites that market different companies for you to invest in.  There are different types of crowdfunding websites to be aware of. Many of the crowdfunding websites offer you a way pre-order a product or service before the product/service is actually available. Typically, they use the pre-order money to help them finish the production or concepts in order to actually get a product to your door. For many companies it is a way to get proof of concept and for others it is just a bit of extra cash to finish everything they started so they can start selling to the consumers. For the sake of this article we aren’t talking about those types of crowdfunding sites. What I am talking about here are the crowdfunding sites that allow you to invest a certain sum of money, typically a minimum invested amount with a goal to raise a certain dollar amount. Once you decide the amount you’ll be invested it is clearly stated how you are compensated. It could be a convertible note, equity or in the form of an interest paid back to you. Two sites that are geared toward helping you invest in that dream company you believe in all while getting a little slice of the pie are, CrowdFunder and CircleUp.

One great thing about this type of investment is that it is allowed inside of a self-directed IRA. You can take your IRA monies and invest them into a company of your choosing. With the advent of crowdfunding websites there are endless companies to choose from. Yes there are rules and issues to be aware of when investing with your self-directed IRA and there are also rules to investing with these crowdfunding sites. If you need more help about some of the rules to investing in a company with your self-directed IRA contact us today because we can hep steer you in the right direction. If you need more info about investing in a company on a certain crowdfunding website they will have all the rules and issues to be aware of. 

Today you can start fulfilling some of your dreams to own a company all while doing inside of your self-directed IRA. All of this can be a great way to diversify your retirement portfolio further all while investing in the things that you believe in. Of course with any investment there is risk that is involved. Make sure you do due diligence to make sure you are fully aware of what you are investing in and the risk involved. Some may be much riskier than others and truthfully it may be hard to know exactly how risky many of the investments may be. It should be an investment you are willing to do and potentially willing to lose out on if worse comes to worse. 

Regardless, the possibilities with self-directed IRA investing are endless and investing in a company is one of the more popular self-directed IRA investments. Get investing today with a self-directed IRA and enjoy shaping your retirement portfolio the way you want to.