Alto, a self-directed IRA custodian, is on a mission to provide everyday Americans the same investment opportunities long favored by wealthy and institutional investors. With an Alto IRA or CryptoIRA, you can diversify your portfolio beyond the public markets and invest in what interests YOU!
It used to be that if you wanted to invest in startups or other private investments in an IRA—assuming you knew you could—not only did you have to do pretty much all of it on your own, you also needed to be able to commit a sizable investment. Then you had to pay a custodian to file the paperwork you likely spent weeks completing with little if any guidance—if you could even find a custodian willing to consider it.
That was the situation Alto founder and CEO Eric Satz was in nearly a decade ago. At the time, he was managing a venture capital fund and wanted to personally invest in a business alongside the fund. But it wasn’t until he noticed his IRA statement lying on the kitchen counter that he wondered, “Can I use my IRA funds to make this investment?”
Individual retirement accounts, of course, offer tax advantages ranging from tax-deferred to tax-free gains, depending on the type of account. Given the potential for outsized returns seldom seen in public markets today, along with the long-term nature of startup investments, Eric saw his IRA as the perfect vehicle for investing in alternative assets.
He’s far from the only person to realize the potential of self-directed IRAs, too. Peter Thiel famously used a self-directed Roth IRA to invest in the then-startup PayPal, earning millions of dollars, which he later turned into billions by investing in early-stage Facebook. By doing so in a Roth IRA, he’ll be able to take distributions completely tax-free once he’s eligible in a few years.
Only Eric didn’t see a “secret” investment strategy. He saw an inequity. Why should the wealthy and well-connected have all the opportunities while everyday retail investors have only the public markets? Year after year, fewer companies were going public—and when they did, they did so later—meaning even fewer opportunities with smaller expected returns for Main Street American investors.
Portfolio diversification is one of the most important tools any investor can leverage because it spreads risk and increases risk-adjusted returns. Until recently, though, true portfolio diversification wasn’t available to most Americans, whose only investment options existed in the public markets.
Alto was created to make investing in alternatives something everyone can take part in by streamlining the self-directed IRA process and enabling individuals to use their IRA funds on popular alternative investment platforms such as AngelList, Masterworks, Republic, and even Coinbase.
Currently, Alto offers two consumer-facing investment products but has plans to expand its offerings to include additional asset classes and accommodate financial advisors.
Launched in 2018, the Alto IRA enables investors to allocate tax-advantaged funds to assets once available only to wealthy and institutional investors—such as art, farmland, private equity, real estate, and venture capital—without complicated or hidden fees. Thanks to the rise of fractionalized ownership, Alto makes it possible to invest in shares of startups, securitized collectibles, and more, for as little as $500.
Where Alto IRA gives investors access to a wide variety of alternative assets, Alto CryptoIRA® was created specifically for investing in digital assets using IRA dollars, offering one of the largest coin selections of any crypto IRA. In addition to providing access to 200+ cryptocurrencies through its integration with Coinbase, and unlike many rival offerings, Alto CryptoIRA doesn’t require large investment minimums or charge monthly account fees. This makes it the perfect choice whether you just want to dip your toes in crypto or are an experienced crypto trader.
When Eric Satz first learned of self-directed IRAs, he had no plans to start a company offering self-directed IRAs. In seeking an improved solution for himself, he recognized an opportunity to help everyday Americans take greater control of their financial futures, and moreover, have real agency in thinking differently about financial planning and retirement. No hyperbole, Alto is a platform that can change the trajectory of the entire retirement industry for the better.
