To Invest or Not to Invest: What About IRA Funds?
Alto talks about how VCs can offer investors the ability to use IRA funds to invest in deals and the impact of SEC updates on the use of IRA funds/access to alternative investments.
Video Transcript
Jim Jones: The the changes, which basically mean the increases that people are able to utilize on in capital raising under Reg. A+ are significant. So that starts to open up once again, the unaccredited market. So we'll see, you start to see scale for investors being able to access their retirement accounts.
Kate Mellinger: Yeah. And I would just add there that really, probably two of the largest contributing factors to the fact that only 2% of American savings and retirement are invested in alternatives is what Alto's trying to solve for. Right? So there's two reasons there, one, the underlying investor probably doesn't even know that they can use their IRA. One of our founding mission and values is education. And so we're trying to get out there again from investors, let them know that that option is available to them. And then two, for those fund managers who in the past have never accepted IRA capital because it was such a headache because it was a paper pen process, getting in front of them and letting them know, you know, there isn't an option out there, it's the most cost-effective option for your investors and it gives you access to the underlying IRA liquidity. So as Alto grows and gets in front of more and more individuals, and we keep pushing our education initiatives, I think that percent invested will increase as well.
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