Quick Summary:
Alto is an administrator (akin to your 401k or 403B provider) of self-directed individual retirement accounts. The company facilitates the ability to invest in cryptocurrencies and alternative investments.
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PROS
- Multiple investment options
- Simple fee structure
- Tax benefits through IRA investing
- Multiple investment options
CONS
- No stock or ETF trading
- It could be cheaper if you invest directly with a sponsor
At A Glance:
| About | A self-directed IRA enables individuals to invest in cryptocurrencies and alternative investments |
| Minimum Investment | $10 for crypto Varies for other investments |
| Fees | 1% transaction fee for crypto $10 a month, plus an execution fee for alternatives |
| Crypto Investment Options | 150+ coins and tokens. Bitcoin, Doge, Ethereum |
| Types of Accounts | Traditional IRA, Roth IRA, Sep IRA |
| Retirement Account Rollovers? | Yes |
| Alternative Investment Options | 75+ options. Real Estate, Art, Music Royalties, Crowdfunding |
What is Alto?
Alto is an administrator (akin to your 401k or 403B provider) of self-directed individual retirement accounts. The company facilitates the ability to invest in cryptocurrencies and alternative investments.
The company offers two types of IRAs: Alto CryptoIRA and AltoIRA.
The Alto CryptoIRA allows individuals to invest in over 150 cryptocurrencies and tokens through their integration with Coinbase, while the AltoIRA offers over 75 alternative investment options for accredited and non-accredited investors alike.
How Does Alto Work?
Alto IRA is a company that specializes in providing Individual Retirement Accounts (IRAs) that allow investors to invest in alternative assets. Alto IRA provides a unique investment platform that allows for diversification beyond traditional stocks and bonds within a retirement account.
Here’s how Alto works:
- Account Creation: You start by creating an account with Alto IRA, where you will choose the type of IRA you want, such as a Traditional IRA or a Roth IRA.
- Funding: You fund your account through a transfer or rollover from an existing retirement account or by making a contribution.
- Choosing Investments: Alto IRA gives you the flexibility to invest in alternative assets like private equity, real estate, precious metals, and startups.
- Investment Process: They facilitate the investment process by handling all the necessary paperwork and coordinating with investment sponsors.
- Fees: Alto IRA generally charges an account setup fee and ongoing administration fees, which can vary based on the investments and account balance.
- Tax Advantages: Depending on the type of IRA you choose, your contributions, earnings, and withdrawals may have certain tax advantages.
- Monitoring and Reporting: You can monitor your investments and track their performance through the Alto IRA online platform.
- Distribution and Withdrawals: You can make withdrawals according to the rules that apply to your specific IRA type, keeping in mind potential penalties for early withdrawal.
- Customer Support: Alto IRA offers support and education to help you make informed investment decisions.
Who Should Use Alto?
AltoCryptoIRA and AltoIRA are a good option if…
You are interested in alternative investments and need a little help getting started.
What Is A Self-Directed IRA?
A self-directed IRA is an individual retirement account that allows individuals to invest in alternative assets that are typically prohibited from traditional IRA accounts.
Self-directed IRAs are available as a Traditional IRA (in which you make tax-deductible contributions) or a Roth IRA (contributions are made on an after-tax basis, but distributions are tax-free).
Anyone can open a self-directed IRA, and the contribution limits are the same as a regular IRA – $6,000 per year.
Alto Crypto IRA Explained
With an AltoCrypto IRA, you can invest in over 150 cryptocurrencies and tokens. You can use your IRA to buy, sell, and trade through Alto’s integration with Coinbase.
There is a minimum investment of $10 and a 1% trading fee per transaction.
You can rollover or transfer funds from an existing traditional Roth, SEP, or SIMPLE IRA and rollover or transfer funds from a 401(k) or 403(b).
Crypto IRA Summary
| Crypto IRA Minimum Investment | $10 |
| Fees | 1% of transactions, no other monthly fees |
| Number of Investment Options | 150 |
| Types of Investors? | Open to all investors (accreditation not required) |
| Trading Windows | 24/7 |
| Other Features | Concierge service to help set up your account |
| Rollovers Available? | Yes |
| Security | Hot and cold storage, FDIC-insured cash |
| Tax Reporting? | Yes, managed by Alto |
Note: Crypto IRAs only allow you to hold cash and cryptocurrencies. To invest in alternatives, you need to open an Alto IRA. You can open multiple types of IRAs through Alto.
Alto IRA Explained
The Alto IRA enables individuals to invest in assets that are not publicly traded. Alto partners with over 75 alternative investment companies to provide users with a truly diversified range of investment options.
| Minimum Investment | Starts at $25 per month |
| Types of Investments | 75+ Options. Real Estate, Crowdfunding, Private Equity, Art, Music Royalties |
| Fees | Monthly Account Fee: $25 Partner Investment Fee $10 -$50 [Only applied when the transaction is executed] |
| Accreditation required? | Monthly Account Fee: $25 Partner Investment Fee $10 -$50.Only applied when the transaction is executed |
You can invest in over 75 types of alternative investments with the Alto IRA.
Both the minimum investment and fee vary depending on the partner. However, Alto does charge a $25 per month fee to cover its own costs.
Investment options include well-known platforms such as Masterworks, Prosper, and Franshares.
How Do I Open An Account?
Alto has an easy 4 step process to open a Crypto an Alto IRA.
- Create an account. Get started with an Alto IRA or CryptoIRA. Or Both!
- Select the type of account (Traditional, Roth, or Sep)
- Fund your account. Using cash or roll-over an old retirement account
- Start Investing. Choose from over 75 partners or 150+ cryptocurrencies and tokens
Fee Structure
Alto’s fee structure varies depending on whether you have an Alto IRA or an Alto Crypto IRA.
There are standard maintenance, opening, and closing fees with both types of accounts.
| Fee Type | Alto Crypto IRA | Alto IRA |
|---|---|---|
| Account Fee | $0 | $10/$50 mo |
| Custody Fee | $0 | $0 |
| Trade Fee | 1% | $0 |
| Partner Investment Fee | $0 | $10/50 mo |
| Account Closure Fee | $50 | $50 |
| Outbound Wire Transfer | $25 | $25 |
The main difference in the fee structure between the two IRAs is that the Alto IRA has a monthly account fee and a partner fee when a transaction is executed. The crypto IRA does not have these fees, but instead a 1% fee of trade notional when a transaction is executed.
How Does Alto Compare?
Crypto and alternative asset IRAs are still fairly nascent in the investment world. There are a handful of up-and-coming competitors in the IRA space.
|  |  | |
Monthly Fee | $10 - $25/month | $15 - 30/month | $0 |
One-time Set Up Fee | $0 | $360 | $0 |
Minimum Investment |
| Varies | $1,000 |
Types of Accounts | IRA |
| IRA |
Types of Investors | Open to all investors | Open to all investors | Open to all investors |
Is An Alto IRA Worth It?
Yes! Alto IRA is worth it if you are interested in investing in alternatives but are unsure where to start.
The main value add is that Alto streamlines the investment process while providing a wide variety of cryptocurrencies and alternative assets in one easy-to-use platform.
But for this usability, Alto charges a monthly fee and a transaction fee.
That said, if you are an experienced investor, you can save a few bucks by investing directly with the platform.
So, if you think the streamlined process is worth the monthly fee, then Alto is a great option for you.
