So what can I do to optimize? There is, of course, nothing stopping you angel investing from both cash and IRA. You can, and many VentureSouth members in fact do, carefully plot what investments are made from which source. If you’re investing in a C-Corp raising a...
But does it actually make sense to use your IRA? 4. Admin and fees There are a couple of other administrative considerations. First, tracking: investments, especially if you do them on your own, is likely easier in the IRA as the custodian should have good tracking...
But does it actually make sense to use your IRA? 3. A bit more on taxes. Two other small things on taxes. We looked at gains in the last post, but we shouldn’t forget the flip-side of that – losses. Capital losses are “useful” in either case – a loss in an IRA will...
But does it actually make sense to use your IRA? 2. Taxes. The key benefit of investing through an IRA, of course, is that any gains have favorable tax treatments: in a traditional IRA, the gains are tax-free when they happen and you pay ordinary income tax upon...
Why would you want to make angel investments through an IRA rather than just cash? Tax efficiency: gains made in IRAs have favorable tax treatments. Other things to buy: People have plenty of ways to use their cash, for both investments and consumption. Uninvested...
Now, not many people know that, but you can make investments in early-stage companies, including through VentureSouth, using funds that are in retirement accounts. How? Step 1: Have cash in a self-directed IRA at a custodian that allows alternative investments. That...