Self-Directed IRA Provider Expands Investment Options to Include Startup Capital Financing With Private Placement
Bellevue, Washington (PRWEB) July 11, 2013
Because access to startup capital can prove to be one of the most difficult components of growing and expanding a company’s operations, it can often prove a pain-point for getting businesses to the next stage. Angel investors looking to capitalize on growth can now access funds available to within their retirement accounts by utilizing a self-directed IRA with checkbook control.
The checkbook control feature of self-directed IRA account holders allows the investor to access funds within the retirement account by simply writing a check. Gone are the days of needing custodian approval for transferring funds and investing. When it comes to investing in timely deal in real estate and capital formation for profitable business ventures, the IRA becomes a source of funds.
“Most of our partner companies have seen greater growth in areas outside the United States,” says Troy Jenkins, VP of Marketing. “There exists a bit more risk, but we feel those who’re interested in the phenomenal tax-free returns that come with investing in private placement and private equity outside the United States, there are very large opportunities there.”
Silverstone partners help draft private placement offerings for companies looking to offer-up equity as an enticement to obtain investment. Private placement deals are beneficial over public offerings in a number of key ways. First, they do not require the regulatory oversight, time commitment or cost to implement. Second, after the deal is done, privacy remains helpful as the company looks to grow its operations. Finally, private placement can mean huge returns if the company eventually does well. But there are also greater risks.
“Private placements also involve a great deal more risk than other investment opportunities,” says Jenkins. Consequently, most self-directed investors avoid “all-in” strategies and still use their self-directed account to invest in multiple private deals as well as the Fortune 500. “It’s a strategy that involves higher risk to your retirement funds and is not something everyone can or should commit to,” Jenkins says. “You have to be comfortable with the idea of losing whatever money you invest, which is not something that would work for most retirement account holders.”
As in any investment opportunity, whether in private placement deals or otherwise, Silverstone partners require investors be accredited and the company nor its partners make any warrants as to the returns or risk threshold any investment may provide.
About Silverstone
Silverstone.net is a self-directed IRA provider and consulting firm based in Bellevue, Washington. The company helps investors craft the unique structure that allows for tax-advantaged investing in such things as precious metals, real estate, private equity and negotiable instruments. The company works to help individuals maximize their tax-free savings and investment through proper legal structuring.