Self-Directed IRA (Bank Stock Only)
Build Your Nest Egg by Matching L/T Investments to Community Bank Stock
CAMELS, in recognizing the benefits of matching long-term investment dollars associated with Individual Retirement Accounts (“IRA”), sees significant opportunity in targeting those dollars for the purchasing of community bank/bank holding company stock.
Now a privately held community bank can secure L/T investment dollars for stock purchases through continual IRA contributions.
Investors can now match their long-term retirement investment dollars to community bank stock recognized by investment advisors, as a long-term ‘hold’ investment.
Designed and Structured for Immediate Implementation
CAMELS has designed a program that provides the necessary operational structure to accommodate privately held community bank stock in an IRA account. This program takes the existing Self-Directed IRA product and provides both Shareholder and Issuer (BHC/Bank) investment advantages typically only offered by brokerage firms for publicly traded stock.
CAMELS program addresses IT, Operational, Compliance, Marketing, and Transactional procedures ensuring long-term ease of management and customer acceptance.
Identifies and Provides Operational Guidance and Systems
CAMELS Self-Directed IRA program utilizes existing bank system (when feasible) and provides direction for building out a complete operational platform. The program accommodates the setting up and management for addressing either external or internal existing IRA accounts to a Self-Directed IRA or opening new accounts.
Addresses All Possible Scenarios of Account Management:
- Opening accounts and ongoing contributions
- Handling of cash dividends
- IRS reporting
- Utilization of existing documentation providers (Wolters Kluwer, Deposit Pro, Ascensus, etc.)
- Establishing FMV for stock purchases
Additional Benefits of Self-Directed IRA – Liquidity and Source of Capital
Incorporating a Self-Directed IRA specifically designed to hold community bank stock provides clear benefits to both shareholder and bank/bank holding company, providing liquidity, program of consistent stock purchases, and the ability to handle large block sales without needing to rely on stock buy-back programs. Establishment of a Self-Directed IRA program in advance of a capital raise offers access to funds already set aside for L/T investment.