Case Study - Kathy used her IRA to invest in pre-IPO

Kathy took ownership in a company pre-IPO with her IRA

How did the process begin?
Kathy attended a meet-up where she heard about a great opportunity to invest in a growing, local tech start-up that needed additional capital to expand the business before going public.   

What made a self-directed investment interesting?
Kathy was familiar with the company and knew the industry, so she was thrilled that she could use the capital 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. Kathy was able to invest $400,000 from her IRA and negotiate the terms directly with the business owner for 5% ownership of the company pre-IPO.  

What were the results?
Kathy’s self-directed IRA 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 likely would have managed with the stock market.  

After the IPO, NDTCO 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. 

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