how can i invest my retirement?

Many of us support local business by shopping, eating, and banking on main street. But, most of our money is invested in a retirement investment portfolio sent elsewhere (and we hope it’s doing...fine?! Be safe out there!). If each of us invested even 5% of our retirement funds in our local community, it could have a significant impact on our local economy and businesses.

Would you like to invest some of your retirement into the local community? You can rollover or put money into a SELF-DIRECTED IRA - a special kind of IRA where you decide where the funds are invested. Self-directed IRAs have become more popular in the last few years since investment crowdfunding became legal. There are regulations and rules to follow, but you can work with a guardian trust company to help ease the process.

There are a lot of companies you can work with to set up a self-directed IRA. To make it easier for people interested in investing IRA money in Commongrounds, we have worked with Kingdom Trust to offer a streamlined process. They have created a link for investment in our project, and their website has a lot of great information about what a self-directed IRA is and the rules around it.

Not sure yet? That’s okay. Check out the rest of the information on this page. Rather just speak to someone directly? Schedule a one-on-one meeting and discuss all investment options with the Commongrounds team.

Some Q & A about Self-Directed IRAs….

Does it cost money to have a self-directed IRA?

Yes. Most companies will charge you a set annual fee and/or a percentage of your investment amount. Kingdom Trust, for example, charges $150 per year and a one-time $100 set-up fee. If you invest $10,000, that is equivalent to a 1.5% fee every year (meaning your return rate is 5.5%, not 7%).

Oh! Why the annual fee?

Remember the annual fee goes to Kingdom Trust, a third-party trust company, not Commongrounds or are third-party web portal LocalStake. Kingdom Trust has to comply with tax and regulatory rules to operative your IRA, and they will send you tax documents every year. If you have a company managing your retirement fund right now, they probably are charging you an annual fee, as well.

I remember looking into self-directed IRAs about 5 years ago and they seemed expensive or sketchy. Has something changed?

Yes. The IRS issued some clarifying guidance on how to interpret the rules. And with the advent of investment crowdfunding, there has been growth in their use and more and more companies are offering crowdfunding IRA products. That said, if you are using a self-directed IRA, make sure you carefully review the applicable rules.

I’d like to read more about self-directed IRAs.

Great! Watch the Michael Shuman video below. Some other resources:

watch the godfather of community investment, Michael Shuman explain how to use self-directed IRa’s for community investment.