Hey everyone,

We’re back with another powerful money loophole! This week, we’re looking at how to grow your retirement by investing in alternatives through a Self-Directed IRA (SDIRA).

Invest Beyond Stocks with a Self-Directed IRA

Most IRAs limit you to stocks and bonds, but an SDIRA opens the door to alternative assets like private equity, real estate, and even pre-IPO investments, all within a tax-advantaged account. This means you can use your retirement savings to access high-growth private companies without losing the tax benefits.

Why This Works for You

Using an SDIRA to invest in private company investments can accelerate growth. For instance, a $10,000 investment in a pre-IPO tech investment could compound tax-free if that underlying company goes public at a much higher valuation. With platforms like Linqto, which allows access to vetted private companies at lower minimums, the potential for tax-free growth becomes accessible and powerful.

How to Get Started (And Diversify Tax-Free)

1. Open an SDIRA Account: Choose a custodian who offers SDIRAs, as regular IRA providers won’t allow alternatives.

2. Fund Your Account: Roll over funds from an existing IRA or make a new contribution.

3. Select Alternative Assets: With an SDIRA, you can diversify into private company investments, real estate, and more.

While fees for self-directed IRAs (SDIRAs) are higher, this cost can be seen as an investment in greater growth potential. With an SDIRA, you gain access to alternative assets like private equity or real estate that aren’t available in traditional IRAs. These assets often offer unique growth opportunities, so while you’re paying more in custodial and transaction fees, you’re also positioning your portfolio to potentially achieve returns that outweigh the costs. For many, the ability to diversify with high-growth alternatives justifies the added expense.

Considerations and Limitations

• Contribution Limits: Annual limits for SDIRAs are the same as traditional IRAs: $6,500 ($7,500 if you’re 50+).

• Prohibited Transactions: Avoid certain assets (like collectibles) or dealings with family.

• Custodian Fees: Expect higher fees than with traditional IRAs due to asset management complexity.

• Diligence: You’re responsible for ensuring compliance, making due diligence essential.

How Linqto Can Help

Linqto simplifies access to high-growth private companies, making it easy to add vetted, pre-IPO investments to your SDIRA portfolio. By offering lower minimums and streamlining accreditation, Linqto brings alternative investing within reach.

Final Thought: Boost Your Retirement with Alternatives

With an SDIRA, you can diversify your retirement strategy by tapping into private market opportunities, potentially growing your nest egg tax-free. Platforms like Linqto make alternative investing accessible, giving you more control over your financial future.

Stay tuned for next week’s money loophole!