Investors, fund managers largely unaware they can include alternative assets in a self-directed IRA
The US retirement market size is $28 trillion with IRAs accounting for $9.2 trillion. Most investors are not aware they can include alternative assets in a self-directed IRA. Self-directed IRAs give US retirement investors control over their investment choices and allow them to use tax-advantaged money to invest in alternative assets. These IRAs can hold everything from private company stock to hedge funds, private equity funds, venture capital funds, private debt, Peer-to-Peer lending or real assets such as real estate, non-traded REITs, land and mineral rights – the list goes on.
Most retirement savers are not aware of this option, and neither are most advisors, capital raisers and alternative investment managers. Self-directed IRAs are well suited to a multi-year investment horizon, and so a few pioneering alternative investment fund managers have started to realize that high-net-worth individuals’ IRAs can be an additional source of capital.
Alternative investments continue to become more mainstream. In fact, surging stock levels aren't deterring self-directed retirement investors from diversifying their portfolios with alternative assets. This creates opportunities for financial advisors to engage with clients on a whole new level.
However, holding alternative assets in retirement accounts requires special knowledge and handling, so many broker-dealers don’t offer alternatives as an option for IRAs. That’s where PENSCO comes in, a regulated, self-directed IRA custodian with thousands of clients with billions of dollars in assets under custody. PENSCO is also a successor custodian for large broker-dealers such as Morgan Stanley, Merrill Lynch, UBS.
Hear Curtis Glovier, PENSCO Chairman & CEO and Opus Bank Senior Executive Vice President, Head of Wealth Services, speak about:
The growth of alternatives in IRAs
PENSCO’s vision of democratizing alternative investments by serving individuals
Who the typical PENSCO client is with alternative assets in their IRA
Why PENSCO is viewed as the gold standard custodian for self-directed IRAs
PENSCO’s technological edge: Easy set-up, transfer and transact alternative asset deals on their industry-leading “Alt-Nav” platform
The FinTech revolution: How PENSCO enables third party investment platforms to tap into IRAs to gain more investment dollars.
Curtis Glovier is Chairman and CEO at PENSCO Trust Company, a subsidiary of Opus Bank. As Chairman & CEO, Curtis is responsible for leading PENSCO and also serves as Opus Bank’s Senior Executive Vice President, Head of Wealth Services, and Senior Managing Director in the Merchant Banking Division. Previously, he was Managing Director at Fortress Investment Group, LLC, and has been a director of Opus Bank since September 2010.
Curtis has 20+ years of leadership experience in financial services, which has included tenures at Perseus, LLC, and Goldman Sachs. He led Perseus' middle market buyout and recapitalization activities, with a focus on business services and branded consumer products, and debt financing activities. He has served as a board member for several companies spanning energy technology, manufacturing, communications, and consumer products.
Curtis received a B.A., cum laude from Princeton University, and an M.B.A. as a Palmer Scholar from The Wharton School of the University of Pennsylvania.
Q. Who is PENSCO and what do you do?
PENSCO is a self-directed IRA custodian--we help individuals directly invest their retirement money in non-exchange traded assets like real estate and private equity.
PENSCO’s role is to determine if an investment may be administered in a self-directed IRA. We don't approve or endorse the actual investment but we are responsible for facilitating the initial investment and administering the assets in our clients’ accounts over the course of the assets' lifetime.
We manage the extensive recordkeeping required by the IRS and handle the reporting of contribution, distribution and investment activity within the account, including quarterly reports, processing of annual asset valuations and other documentation.
Investors and their advisors — not the IRA custodian — are solely responsible for evaluating the investment’s merits and suitability.