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Be Your Own Venture Capitalist

You can now invest in a company you believe in, before it goes public. Retirement investors who want to invest responsibly are no longer limited to specialized mutual funds. Anyone can now invest in a private company which shares their passion, whatever

By: John Sheflin

Quarterly Newsletter

You can now invest in a company you believe in, before it goes public. Retirement investors who want to invest responsibly are no longer limited to specialized mutual funds. Anyone can now invest in a private company which shares their passion, whatever that may be.

David Williard, like all retirement investors, wants diversity in his retirement fund and long term growth on his investments. He would prefer to minimize the impact on the environment, while making money. In Williard’s case, he has diversified his self-directed IRA by investing in a commodity that is about as green as they come – trees.

Catherine Wynne, president of Entrust New Direction, IRA explains that with the self-directed IRA, “Our clients who want the freedom to invest in private companies and real estate can transfer old 401(k)s and standard IRAs into a self-directed IRA with us.”

Williard used his self-directed IRA to buy shares in a private company - The Bauers Family Tree Farm. The company bought a 260 acre cattle ranch in Costa Rica. The land, which had been clear-cut 50 years ago for cattle ranching, now has 45,000 teak trees on 140 acres. “120 acres is forest that will never be cut down,” said Joe Bauers, one of the owners of the Bauers Family Tree Farm.

“We see monkeys, ocelots, armadillos – it’s really a jungle.”

Bauers and his investors are not planting teak trees as a charitable contribution – they expect a healthy return. In five year increments, some of the trees will be cut down and sold, and the empty areas will be replanted with more teak trees. Williard believes the tree farm is “poised for long term growth.”

Williard is part of a recent trend of investors who want to do good while doing well. A growing number of these people are using a self-directed IRA to invest in private companies of their choice.

Entrust New Direction has seen many clients grow their retirement fund while investing where their heart is. Wynne said, “Our clients have used their IRAs to loan money to their church building fund, they’ve invested in companies who make energy efficient windows, and they can still invest in a green mutual fund, all within their self-directed IRA.”

She also noted, “Entrust New Direction never provides investment advice of any kind.”

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