Frequently prospective clients come to us with an investment idea. Whether it is real estate, horses, private company stock, or other similar investments, when these ideas are formulated based on their experience and expertise, they can be some of the best investments we see.
If you have a specific investment in mind for your Self Directed IRA, we can help. We will work with you to analyze, structure, and purchase the investment in the appropriate way. In addition, we provide you with extensive due diligence and risk management. We will advise you if we feel it is not an appropriate investment for your portfolio, or if it is not in your best interest to purchase it with your retirement account. Our risk management team will provide you with a fundamental analysis of your potential investments, as well as assisting you with the proper structuring and how to avoid common mistakes when working with non-traditional assets inside a Self Directed IRA.
Innovative Advisory Group has a thorough process when it comes to any investment. Below is a simplification of this process to help you understand our methods and why it is important for us to be thorough.
Due Diligence and Evaluation
Innovative Advisory Group has a sophisticated due diligence and evaluation process when qualifying alternative investments for retirement account portfolios. We treat every investment the same. We are unbiased to whether the investment is a traditional or alternative investment. We evaluate each investment on its own merits. This holds true whether we are identifying the investment for you, or you are bringing it to us for evaluation. We look for investments that have a winning combination of people, performance potential, and managed risk. Once an investment meets our initial criteria we move forward with a more detailed and thorough evaluation, including a review of prior financials, pro formas, extensive background checks on the principals, a review of offering materials, regulatory filings, and other related materials. Once we have reviewed and evaluated the investment, we move on to the next step, Suitability.
Once the due diligence and evaluation stage is complete and your investment meets our strict standards, we will then assess whether the investment fits with your entire portfolio and investment criteria. Pairing your existing investments, risk tolerance, and expectations with the proposed investment is an important part of the process to ensure that the investment is suitable for you.
When your proposed investment has been through our rigorous due diligence process and suitability screening, the next step is preparing to fund the investment and complete the transaction. The preparation part of the process typically involves other institutions, professionals or specialists such as attorneys, accountants, real estate or insurance agents, depositories, and custodians. We are familiar with many of these specialists, so it makes for a smooth implementation process. Some of these professionals are needed to ensure that the investment is structured properly and all documentation is complete and accurate. If the investment is to be held in a retirement account, we document procedures for our clients to follow in order to ensure future IRS compliance.
Our process does not stop with the implementation of the investment. We continuously monitor all investments. This monitoring process includes ongoing due diligence on the investment such as, frequent communication with investment managers or principals, analysis of performance, assessing changes in management strategy, analysis and management of ongoing operational risks, and alternative investment strategies. In addition to the due diligence, we also continually assess the investment’s suitability for the client. If any issues arise during our ongoing monitoring process, appropriate strategies and corrective actions are initiated by the Investment Committee.
If you have an alternative investment identified and want Innovative Advisory Group to help you, contact us to learn more.