One of the simplest methods of raising capital for private ventures is tapping into investors’ IRAs & 401(k)s. Many investors have stagnant retirement accounts and are unaware that they can be invested in alternatives like your fund. Your investors will be pleased to learn that their retirement portfolios can be diversified to include private equity funds, hedge funds, and startups. This is a win-win all around as your fund experiences an upsurge in funding from retirement accounts while your investors benefit from a largely unknown diversification strategy.
According to Pew Research population projections, an estimated 10,000 baby boomers retire every day. Consider the growth your firm can experience by capitalizing on this trend. As baby boomers retire, thousands of them are eligible to roll their employer plans into an IRA. Their newly available IRAs can be invested in standard brokerage products, or they can be invested in alternatives like your fund.
Consider reaching out to your current investor base and educating them about investing their IRA with you. They’ve already shown confidence in your approach by investing personal money with you. Now it’s time for them to invest their IRAs with you as well.
The primary concern for Fund Managers in introducing the Self Directed IRA option is that the custodian will not deliver the high level of service their investors has come to expect. Fund Managers are afraid of risking their hard-earned relationships by referring an IRA Custodian whose standards doesn’t match their own. That is where Madison Trust Company’s service-based model kicks in.
Self Directed IRAs are also an excellent way to onboard brand-new investors. The most common objection from prospective investors is that their personal assets are tied up. With a Self Directed IRA, you can accept their IRA money and open the door to a powerful and vigorous revenue stream for your fund.
Madison has introduced numerous safeguards to ensure that our service is unmatched. When an investor contacts Madison, they will be answered by one of our in-house, knowledgeable Self Directed IRA Specialists. Additionally, Madison’s support staff receives CISP training from the IRA Institute so that they are equipped to field any questions your investors may have about their Self Directed IRA. Lastly, Madison believes that great service does not have to come at a great price. Madison’s custodial fee is among the lowest in the industry. For more information, please visit our fee schedule page.
Fund Managers and Investment Sponsors alike have come to rely on Madison Trust Company to seamlessly channel their investors’ IRA money into their fund. Madison remains at the forefront of the industry due to its impeccable service and flawless investment execution. Join the ranks of forward-thinking companies who’ve significantly increased AUM through Madison’s Self Directed IRA platform.
First, a new or existing investor can open a Self-Directed IRA with Madison Trust by completing our easy online application.
Next, your investor will fund their Self-Directed IRA by transferring or rolling over funds from an existing retirement account, such as an IRA or 401(k).
Finally, your investor will instruct Madison Trust to wire their retirement money directly to your fund.