Friday, May 26, 2017
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How to Trade Securities

CROWDFUNDING IRAs

Yes... you can invest in crowdfunding projects through a self-directed IRA!

Investment crowdfunding, usually referred to as equity crowdfunding, is a means by which investors (the crowd) can invest in private companies in exchange for shares or interest paying notes. Unlike reward and donation-based crowdfunding, where supporters would normally only receive t-shirts, the occasional product prototype or a word of gratitude for their financial contributions, equity-based crowdfunding offers a return on investment if a company is successful. GoldStar will hold both equity and debt-structured crowdfunding investments in a self-directed IRA.

Jack opens a GoldStar IRA. Through his IRA, Jack invests in Gary’s Gadgetland, an equity-based crowdfunding project. Gary’s Gadgetland is able to raise $10 million from hundreds of different crowdfund investors, including Jack. Jack now owns a share of Gary’s Gadgetland in his GoldStar IRA. Later that year, Gary’s Gadgetland is purchased by Don’s Drones for $50 million. Because Jack had equity in the company through the crowdfund raise, his IRA at GoldStar received a handsome payout.

Crowdfunding investments may involve a high degree of risk so do your due diligence before investing. The return on investment will of course depend on the success (or failure) of the project you are investing in.   Close
Crowdfunding Investors: Open a Traditional or Roth Self-Directed IRA below and give us investment instructions.

or

Download PDF: Roth IRA Kit

CROWDFUNDING ESCROW

Equity crowdfunding regs require that all funds raised go into a third-party escrow account and remain there until the funding goal is met or be promptly returned to investors if the goal is not met. Because funding portals can’t touch the funds, a third-party is needed that can fulfill the escrow requirements of both state and national crowdfunding regulations.

Introducing:
How to Trade Securities

VisitCrowdPay.com to learn more about esrow and payment services for crowdfunding portals. Questions about CrowdPay? Email: team@crowdpay.com

GoldStar does not offer investment advice and does not buy or sell investment products. GoldStar will make no investigation as to the viability or safety of the investment(s) you select. GoldStar is compensated through administrative fees and cash management fees. GoldStar does not receive compensation from crowdfunding web portals, platforms or broker-dealers.

FDIC NOTICE: Crowdfunding investments represented on this website are not FDIC-insured, are not guaranteed by GoldStar Trust Company, and involve risk including possible loss of principal. If held in a GoldStar IRA or CrowdPay account, the un-invested cash portion is FDIC insured up to $250,000.