Aged to Perfection—Investing in Bourbon in an SDIRA: Webinar Recap

This webinar focused on bourbon investments and how they offer unique ways to diversify retirement portfolios. The session provided insights into the bourbon investment industry, the role of distilleries and bourbon-focused funds, and the potential returns for investing in bourbon in an SDIRA. Our guest, Morgan Salsman, owner of LQD Assets, shared her wealth of experience in buying, aging, and selling bourbon barrels. She provided valuable insights into the fundamentals of investing in this space.

So, whether you attended the live webinar and want to watch it again or if you missed it, you can access the recording here or read the highlights below. As always, our webinars feature guests with unique experiences in alternative investments for self-directed IRAs (SDIRAs).

Key speakers

Host: Reneika Lightbourne, Business Development Specialist at Advanta IRA
Guest: Morgan Salsman, Founder and Owner of LQD Assets

The webinar began with Reneika Lightbourne introducing the concept of self-directing IRAs and how people can use them to invest in non-traditional assets like bourbon. Morgan Salsman then discussed the fundamentals of investing in bourbon, her company’s role in the industry, and the potential returns for investors. The session ended with a Q&A session, during which the speakers answered questions from the attendees.

Investing in Bourbon in an SDIRA

The webinar explored the potential of investing in bourbon as a unique approach to diversifying retirement portfolios using SDIRAs. Self-directed IRAs allow alternative investments to the stock market that conventional plans do not. The IRS rules for retirement plans prohibit direct investments in alcoholic beverages, but investing in bourbon-focused funds, distilleries, or companies is permitted and was the focus of the discussion.

Reneika Lightbourne of Advanta IRA explained that funds from any IRA or former employer plan, such as an old 401(k), can be transferred or rolled over into a self-directed account. This gives the account owner complete control over their retirement funds and investing decisions. All income generated from the investment flows back into the SDIRA, just as it does with a conventional IRA.

Self-direction opens the door to a wide variety of alternative investments like real estate, private equity, and more unique assets, such as bourbon. Account A glass of bourbon inside an oak barrel representing investing in bourbon with an SDIRA.owners can invest in things they have experience with, and if they want to invest in something they don’t understand, they can learn.

Morgan Salsman shared her experience in the industry and discussed the fundamentals of investing in bourbon. She grew up in Kentucky, the world’s bourbon capital, and she learned different aspects of the bourbon industry throughout her life. So, she developed an interest that jettisoned her career in that space.

Salsman explained the growth of her company, LQD Assets, highlighting its expansion from nine to 80 investors, raising roughly $15 million for barrel purchases, and creating additional investments in storage facilities.

Her story illustrates the opportunities for investing in bourbon in an SDIRA to build retirement or within personal investment portfolios.

SDIRAs Present Individuals with a New Source of Capital to Invest

The webinar also delved into the concept of self-directed investing and the control it gives the account owner. Reneika explained that self-direction presents a new source of capital for individuals seeking to diversify outside of traditional stocks and bonds.

While self-direction is gaining popularity every year, a large portion of the population hasn’t heard of self-directed IRAs and doesn’t understand the potential of investing in unique assets that aren’t dictated by the stock market.

Additionally, self-directed funds present capital raisers with a new fundraising strategy they can tap into for their investment offerings.

The Profitability and Growth of the Bourbon Industry

Morgan Salsman provided an overview of the bourbon industry, its profitability, and its growth potential. She shared her journey of investing in bourbon barrels while still in college, which eventually led to the founding of LQD Assets.

“After a few profitable cycles of buying and selling barrels, the gentleman who had started our original program didn’t want to continue with the purchases. I raised my hand and said, ‘This has been fun and profitable, and I have the free time to explore this further,’” Salsman shared. She also spoke about the growth her company experienced, raising around $15 million for barrel purchases over just two years.

“I chose to bet on myself and leave my engineering job to pursue my dream of building a business and becoming an entrepreneur,” Morgan reveals. This entrepreneurial spirit is the motivation behind people who take control and dictate the terms of building wealth to secure a successful financial future.

Salsman also addressed the impact of the pandemic on the bourbon industry, noting that despite the global downturn, the industry had seen significant growth. The bourbon industry operates on supply and demand, and even during economic downturns, the alcohol space typically remains steady.

For more detailed information, watch the full version of the recorded webinar.

Additional resources on SDIRAs and alternative investments:

What Are Alternative Investments? Here’s a List of 120+ for You & Your SDIRA

7 Benefits of Self-Directed Solo 401(k) Plans for Small Business Owners

Self-Directed IRAs vs. Traditional IRAs: Which Plan Is Best for You?

 

About Scott Maurer

Scott Maurer, Vice President of Sales for Advanta IRA, is a recognized expert in the field of self-directed IRAs. With a law degree from the University of Florida and as a designated Certified IRA Services Professional (CISP), Scott’s keen understanding of rules and regulations fuels his passion to educate others on the power of investing in alternative assets using self-directed IRAs. Scott is a frequent guest on retirement and investing webinars and podcasts, and he has shown thousands of individuals how to achieve financial freedom by teaching them how to use their retirement funds to invest in private placements, real estate, private lending, and more. Throughout his two decades in the industry, he has watched numerous unique investments unfold, giving him great perspective of what is possible when people take control of their retirement funds and investing decisions.