Kathy took ownership in a company pre-IPO with her IRA.
How did the process begin?
Kathy heard about a great opportunity to invest in a growing, local tech start-up after attending a meet-up where she learned they needed additional capital to expand the business before going public.
What made self direction interesting?
Kathy was familiar with the company and knew the industry, so she was excited to learn that she would be able to use the capital she had in her own IRA accounts to support a company that she personally vetted and whose values she shared.
Why New Direction Trust Company?
Kathy heard about NDTCO through a friend and was impressed with their experience and “can do” attitude. She felt confident they would be the right partner for her as she took her first steps into self-directed investing. With NDTCO as a middle-man for her funds, Kathy was able to invest $400,000 from her IRA and take a 5% ownership of the company pre-IPO and negotiate the terms of the deal directly with the business owner.
What were the results?
Kathy’s Self-Directed IRA account was listed as owner of the asset itself and all returns flowed directly back into her retirement savings to maintain its tax-advantaged status. Once the company went public, she recognized a gain of 5% over what she could have managed with the stock market.
After the IPO, NDTCO’s service team and digital platform made it easy for her to liquidate her shares within her IRA so she could find another company she was passionate about to invest in.