Basic Capital
Basic Capital is a full-stack retirement platform designed to amplify retirement savings by embedding financing directly into IRAs and 401(k)s. The company delivers a vertically integrated 401(k) solution, consolidating traditional investment options and plan management tools into a single streamlined platform. Through its innovative model, Basic Capital provides $4 of non-recourse financing for every $1 contributed, giving investors up to 5× the investing power in diversified portfolios built for long-term growth. Branded as a “mortgage for your 401(k),” the platform enables participants to effectively pull forward future contributions, accelerating the compounding process and potentially building retirement wealth faster than conventional plans.
HOW IT WORKS
For every $1 contributed, users receive $4 in supplemental financing, creating a larger investment base and amplifying the effect of compounding.
This is executed via a limited liability company (LLC) structure, which limits participants' risk to their original contribution—no credit check is required.
The platform offers a vertically integrated solution: from IRA setup and LLC formation to financing, investing, and record-keeping—all accessible via a mobile app.
BASIC CAPITAL BENEFITS
For Employees
Accelerated Compound Growth
Larger initial investment base enhances potential long-term returns.
Financial Goal Planning
Built-in tools help align contributions with retirement goals.
Limited Downside
Financial structure protects beyond original contribution.
For Employers
Talent Attraction & Retention
Enhanced retirement options serve as powerful recruiting incentives.
Administrative Efficiency
Streamlined setup and upkeep, with substantial potential cost savings on matching contributions
RISKS & CONSIDERATIONS
High Costs & Complexity
Borrowing costs plus plan fees can eat into returns.
Regulatory Scrutiny
The use of private credit and leveraged accounts may attract oversight due to their complex legal structures under ERISA.
Market Risk Amplification
Using up to 4× leverage means market declines could quickly eliminate principal if investments falter.