How a Creative Investor Profited with Show Horses in His Self-Directed IRA

Attorney David Rocheford is an investor who constantly searches for other ways to ensure his financial success instead of relying solely on the market. Over the years he has expanded his retirement portfolio beyond traditional investments to include real estate and notes through a self-directed IRA.

“I’m always looking for new investments in unorthodox areas,” said Rocheford.

As long as the unorthodox investments have the potential to grow his retirement accounts, Rocheford is willing to listen. So when he heard about a new investment opportunity in dressage horses with significant profit possibilities, he was intrigued.

“We had no knowledge or experience with horses,” he said. “We’d never heard of dressage.”

Due Diligence Key to Laying the Groundwork that Ensures Success

Rocheford and his wife met with their investment advisors, NUA Advisors, who specialize in Self Directed IRAs and alternative investment, took the reins and began an exhaustive research project into the viability of dressage horses as an investment vehicle for self-directed IRAs. Seeing as neither had any previous experience in this area, they had to start from square one.

After meeting with a horse farm that specialized in dressage, they knew that there was money to be made by importing animals from overseas and training them in the United States. Due to the higher level of competition here, many horses that have reached their peak in their home countries still have room to grow once they are imported.

The importing, though, was the tricky part. Unlike a more “traditional” investment, importing dressage horses with an IRA involved many questions that needed answered.

• How old should the horses be?
• How will the horses be transported?
• What documentation is needed? (Oddly enough the answer: a passport)
• How will the health of the horse be ensured?
• What happens if there is a problem in transport?
• How is ownership and titling handled for the IRA?

With Everything in Place, It all Comes Together

Even though this type of IRA investment required a good deal of preparation and presented more than the normal number of speed bumps, Rocheford and NUA Advisors knew that they would see significant profit in the end.

As Rocheford said, “I’ve got a bit higher risk tolerance than the average investor.”

Once the questions were answered and the groundwork laid, it was time to put their plan into action.

Horses that fit their criteria were located overseas. After identifying the horse for investment, documentation, transport and medical coverage were arranged and the horses were transferred to a local farm where they would continue to work with a trainer with over 20 years of dressage experience.

From there, the farm staff and trainer took over preparing the horse for sale. Once completed, they would receive a portion of the profits from the sale, giving them motivation to ensure that the horses were as attractive as possible to potential buyers.

Endless Investment Possibilities with Self-Directed IRA

While most people wouldn’t give such an investment a second thought, Rocheford saw the potential for profit from the beginning. He worked hand-in-hand with NUA Advisors to create a plan and ensure that all angles were covered.

They were able to take a seemingly impossible investment puzzle and put the pieces together, resulting in tax-free profit for Rocheford’s IRA.

“It was an exciting investment,” he said, “something completely different.”

In the end, Rocheford took a chance on a something entirely foreign to him and, thanks to the prep work he and NUA Advisors performed, turned the opportunity into successful investment venture.

What opportunities have been presented to you lately? Will you take advantage of those possibilities?

To find out more about how you can take advantage of every opportunity available to you, contact a Retirement Plan Specialist at 1-888-382-4727 to discuss your self-directed IRA road map.

Disclaimer:Disclaimer: Equity Trust is a passive custodian and does not provide tax, legal, or investment advice. It does not endorse or recommend any contributor, company, or specific investments. Any information communicated by Equity Trust Company is for educational purposes only and should not be construed as tax, legal, or investment advice. Whenever making an investment decision, please consult with your legal, tax, and accounting professionals.