{"id":19234,"date":"2018-05-28T10:32:50","date_gmt":"2018-05-28T14:32:50","guid":{"rendered":"http:\/\/www.escapeartist.com\/?p=19234"},"modified":"2020-06-24T14:26:02","modified_gmt":"2020-06-24T18:26:02","slug":"use-ira-invest-business","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/use-ira-invest-business\/","title":{"rendered":"How to Use Your IRA to Invest in a Business"},"content":{"rendered":"
Usually, you can only invest in the approved vehicles provided by your bank or firm when managing your IRA. That is, unless you have opted for the self-directed variety. In a self-directed IRA, your options are more open and flexible. This means that if you have business endeavors ahead of you, you might even be able to use your IRA to benefit those goals.<\/span><\/p>\n What is a Self-Directed IRA?<\/b><\/p>\n This classification of IRA is different from other types because you can individually decide where your investment will be applied. This IRA allows you to invest in assets not usually included within traditional IRA\u2019s. Those are more often used in stocks, bonds and mutual funds. With a self-directed IRA, you can choose alternatives for your investments, such as real estate, coins and precious metals, and businesses and startups!<\/span><\/p>\n For the self-directed IRA you choose a custodian to manage your funds for you, rather than choosing a brokerage or bank to do so. The custodian houses your alternative investment assets and provides appropriate record keeping for these assets. This person is more passive than a traditional bank or brokerage firm.<\/span><\/p>\n Investing in a Startup with Your IRA<\/b><\/p>\n If your long-term goals include starting a business, you can set up your self-directed IRA so that you can start building equity for that business. You have to know ahead of time that you won\u2019t be withdrawing from this account for a few years (at least). The average exit for a startup is seven years from inception, so your goal is already going to be long-term.<\/span><\/p>\n