Investing in Breweries (and Other Local Businesses) with IRAs and Other Tax-Advantaged Accounts

As the COVID-19 recovery continues, aspiring entrepreneurs will certainly spot opportunities in new business ideas and ventures. Many of these will be local and may include your favorite craft beer brewery. 

Ready to invest in breweries? Click here to open a self-directed account with NDTCO today! 

Private breweries had been popping up prior to the pandemic, and consumers – and beer connoisseurs – are now re-entering the market. To meet demand, owners and founders often look to their customers and local investors to help finance business growth. If you’re looking to diversify your retirement portfolio, or if you’re simply fascinated by the business of breweries (and other industries) and want to own a piece of a local establishment, consider using your retirement funds. Self-directed IRAs, Solo 401(k)s, and Health Savings Accounts, among others, are all eligible accounts to be a part of something special. 

Avenues for Investment 

One of the more accessible means of brewery investments is through crowdfunding websites. These platforms allow prospective investors to browse opportunities and join others with similar interests, supporting fledgling companies with smaller dollar private equity commitments from individuals. 

While some crowdfunding platforms will accept investments from anyone, others restrict investments to accredited investors. However, becoming an accredited investor is now easier than you may think. Note that if you are accredited, your tax-advantaged plan is also accredited. 

Your self-directed account could also make a direct equity investment in a brewery. Similarly, your account(s) could also issue private loans should debt be a better security for the given company. These investments are often negotiated between the parties and can be as flexible in terms as needed. 

How to Get Started 

To invest in breweries (and other local businesses) with New Direction Trust Company: 

  • Open a new account. 
  • Fund your new account via transfer, rollover, or contribution. 
  • Examine available investments and select those that will meet your needs. 
  • Submit our Buy Direction Letter to authorize NDTCO to make the investment. Visit the Client Portal, click “Invest” on the left side of the screen, select the applicable option, and click “Invest Now” to complete the Buy Direction Letter. Additional paperwork may also be required depending on the exact nature of the investment. 
  • Once completed, NDTCO will issue the funds from your account to execute the investment. 
  • Congratulations! Your tax-advantaged account has become the latest investor in the brewery industry. 

Give us a call at 877-742-1270 or send us a message through the Client Portal if you have questions about getting started or to discuss your options. 

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