Investing in startups through an IRA: Republic

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IRAs (individual retirement accounts) offer Americans a valuable (and tax-advantaged) way to save money for retirement.
In a traditional IRA, taxes are only collected when the money is withdrawn (during retirement). This allows your investments to grow and compound for a much longer period of time before taxes are taken out, and can significantly boost after-tax returns.
To learn more about the basics of IRAs, and the differences between a Roth and Traditional IRA, head on over to Investopedia.
Since they were introduced in 1975, IRAs have played a key role in retirement planning for millions of Americans. But until recently, the assets you could invest in through these vehicles was often limited to publicly-traded securities such as mutual funds, ETFs, individual stocks, and bonds.
Alternative (self-directed) IRAs
Over recent years it has finally become possible to invest in private startups through a “self-directed” IRA. Investing in startup companies through an IRA could have substantial long-term tax benefits if gains are realized.
If you already have a self-directed IRA, you can learn how to invest through it on Republic here. If you’re interested in opening an IRA that can invest in startups (and other alternative assets), today we’re going to look at three companies who offer self-directed IRA services which can invest in startups.
First up is AltoIRA. AltoIRA offers their customers the ability to invest in startups, cryptocurrency, precious metals, real estate, and other assets. The firm has its simple, transparent pricing listed on their website and next month you will be able to use your AltoIRA account as an investment entity and payment method directly on Republic.
RocketDollar is another provider of self-directed IRAs. Like AltoIRA, you can invest in a large range of alternative assets including startups, real estate, gold, and loans. RocketDollar offers a “solo” IRA for self-employed folks and even ran a successful campaign with Republic recently.
New Direction Trust Company also offers self-directed IRAs (and 401ks) and their customers have used Republic since 2018. The investment options are similar to those offered by other providers, and include real estate, private loans, startups, and private equity.
As we mentioned earlier, it is already possible to make investments on Republic through a self-directed IRA. However, we’re working to make it even easier in the near future, so stay tuned for announcements if this option piques your interest. And let us know about other providers you want us to integrate and collaborate with.
SheWorx Update: Founders + Funders Digital
We’re still riding high from seeing many of you virtually at our SheWorx Founders + Funders summit a few weeks ago! We heard from an impressive group of founders and investors. If you did not attend and would like access to the video recordings of the talks, you can sign up here for free access.
Founders: didn’t get a chance to sign up for Speed Mentoring at F+F Digital? Apply to join the AWS & SheWorx Mentorship Program for an additional opportunity to get mentored by their network of veteran startup founders and industry experts.
Special Event: TPI Member Spotlight
As part of our partnership with The Player’s Impact (TPI), we’re excited to announce that Wendell Carter Jr. will be the focus of TPI’s Member Spotlight on Thursday August 20th @ 5pm ET. Wendell will provide insight into what it’s like to be a rising star in the NBA, how he is planning for his financial future, and how he is taking the charge on Athlete Fan Funding at Republic. RSVP for this special event, free, here.

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