Crowdfunding With Your IRA to Diversify Your Retirement

By Yvonne Garcia, CrowdFunding Beat guest contributor and
The Entrust Group, Traditional crowdfunding – pooling investments from dozens, hundreds or thousands of investors – doesn’t take full advantage of the resources afforded by the medium. Did you know that crowdfunding is now becoming more popular for retirement account owners, who use it save for the future? In fact, we have seen that trend increasing.

With a self-directed IRA or an Individual 401(k), one may invest in real estate, LLCs, private placements, and other assets via an online portal for crowdfunding. A self-directed retirement account is one that can hold more than the traditional stocks, bonds and CDs offered by financial institutions. It offers a truly-diversified portfolio; one that is much less susceptible to market fluctuations. While self-directed IRA investors have always had access to alternative investments, they have not always had the option of investing online.

Start-ups and small companies are often attracted to finding private investors because of financial institutions’ tightening their lending practices. Obtaining capital from a self-directed IRA owner is often simpler than getting a bank loan.

These types of investments have the potential for higher returns in retirement plans than traditional assets, but they also pose more risk because companies offering investments are not required to provide as much information as they would with a registered offering. Entrust encourages our IRA investors to perform due diligence and research all potential investments and companies.
A self-directed IRA comes with rules defined by the IRS, but the most important component is that a custodian must hold the investment as a part of an “arm’s length” transaction. When making an investment, the money must come directly from the IRA, and the legal documents must be in the name of the IRA. This is where we come in. The Entrust Group works with investors who wish to self-direct their retirement into nontraditional asset types and strategies such as crowdfunding.
How it Works
The process of crowdfunding online with your self-directed IRA is relatively simple. In fact, in just three steps, you could be funding the next big startup:
1. Open and account and sign up for The Entrust Group myDirection Card. This tool is necessary for online investing with your retirement funds.
2. Fund your account by transferring or rolling over funds from your existing custodian to Entrust.
3. Receive your card and start investing online.
It’s that simple!

To learn more about how self-directed accounts work with crowdfunding, visit us at

About The Entrust Group
For more than 30 years, The Entrust Group has provided account administration services for self-directed retirement and tax-advantaged plans. Entrust can assist you in purchasing real estate with your retirement funds, and administer the buying and selling of assets that are typically unavailable through banks and brokerage firms.

Entrust does not promote any investments. Rather, Entrust provides the administration, information, and tools to make self-direction straightforward and compliant. We help you get started quickly and stay with you every step of the way.

INFOGRAPHIC – Crowdfunding with a Self-Directed IRA
Webinar: Crowdfunding Within a Real Estate IRA

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