Americans have $29 Trillion of retirement assets, and it's most of their investable capital. Yet, when it comes to investment choices, most are limited to just mutual funds, public stocks, and maybe some bonds. But they want more investment options; independent by nature, they want more opportunities, and they want to steer the ship. Most IRA custodians like Fidelity and Schwab will not accept investments in alternative assets like directly owned private stock, precious metals, real estate, and cryptocurrency. That's unfortunate because many professionals in finance see better returns in alternatives - especially as a hedge against changing economic conditions. Since retirement accounts are the primary way American's invest, they mostly miss out on these opportunities.
iTrustCapital is developing the technology to give Americans an easy-to-use, safe, and cost-effective way to invest in alternatives with their retirement accounts. We predict technology, including blockchain, will create a new segment that, in addition to access to retirement capital, will inspire new uses for tax-advantaged accounts. We expect the mass-adoption will free up $1.5T of assets for this new type of investing within seven years.
Disruptive Technology to Solve Big Problems.
The core problem is that, unlike publicly traded assets, there is no standard way to make non-traditional investments in retirement accounts. To make these transactions happen, Self Directed IRA custodians shift the fiduciary responsibility and administration to the individual who has to perform the functions typically reserved for professionals, including due diligence, the movement of capital, delivery of the asset, storage, and, most importantly, IRS compliance.
iTrust Capital is developing solutions to these problems by applying real-world and time-tested financial solutions with new technologies like Blockchain. Our goal is to:
- Make it Simple. Our goal is to continue offering trading in just three clicks. All the information needed to make informed investment decisions will be at your fingertips.
- Make it Affordable. We will pioneer systems to lower costs by standardizing transactions, increasing trade execution efficiency, automating contracts, improving identity management, and lowering asset custody cost.
- Reduce Risk. Building due diligence tools integrated with tokenized assets, securing asset storage, and ensuring liquidity.
- Intended to avoid prohibited transactions. Create reporting features, and smart contracts to avoid prohibited transactions that risk steep financial costs of taxes and penalties totaling 30% or more.
We're driving growth with trust.
We will pioneer the standardization and integration of due diligence and compliance tools for investors. Existing problems with Self Directed IRAs mirror the recent troubles with digital assets. Neither segment ensures safety in the marketplace. Unlike publicly traded assets, alternatives are not regulated by the SEC. While this presents opportunities, bad actors seek to take advantage of an unregulated market to deceive investors. By leveraging our management team’s proven experience evaluating alternative investments on an institutional scale, we will continue to push community standards and develop the best tools to evaluate investments you can trust.1
We have the technology and the team.
- Todd Southwick - CEO – Executive or Co-Founder of 3 startups in the technology/media sectors.
- Blake Skadron - COO - Consumer finance experience. Director at alternative asset IRAs.
- Rich Hauschild - CTO - SVP of Technology at PIMCO 2008 - 2019; Trading systems technology.
- Tim Shaler - Advisor - SVP Portfolio Manager at PIMCO 1999 -2008; Professional trader, economist.
- Murphy McCann - Advisor - SVP Operations at PIMCO 2007 -2015; Master of financial infrastructure.
Our vision for the scope of the market.
Determined individuals already invest in alternatives using Self Directed IRAs that are expensive, inconvenient, and risky. That said, a significant amount of capital still sits in these accounts - around $150B. We believe that even a moderate improvement in cost and accessibility would likely cause the amount to greatly increase.
We believe our trading platform, which launched in July, will lower total annual costs for investors down to 1% while also providing a safer and easier service than is available today. (Currently, we offer cryptocurrency but plan to add gold, real estate, and more).
The best part is that we feel we are just about to catch a wave that could transform financial services. Within ten years, we estimate that the $150B of capital in alt-asset IRAs can grow to $1.5T. We base this 10X multiple on two examples.
- Cryptocurrency: 10 to 15 million U.S. investors have $1T retirement assets, but only $1B deployed in crypto. We believe this audience would have invested at least $10B as of today if they had a safe and inexpensive way to utilize their locked-up retirement assets.
- Real estate: Tax savings is a powerful motivator. 1031 exchanges did $170M in transactions in 2010 and $2B in 2018. If similar multiples are assumed for Self Directed real estate IRAs after the problems are fixed, and they become a viable option for investors, the $63B in assets now becomes $741B in eight to ten years.
We will help create these opportunities so you can easily diversify into the assets you choose and take advantage of these growing markets.