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Investor Insights Blog

Did You Know You Could Grow Your Retirement by Investing in Your Area of Expertise?

June 23, 2020

Opening your own self-directed account with the right custodian 

Unlike a traditional or Roth IRA, not every IRA provider is qualified to open a self-directed account. You can learn more about finding the right provider here. 

All of this requires a little extra work on your end, but your inherent knowledge in the field provides you an advantage you may not find in a traditional stocks/bonds model. It could be a rare opportunity to match your needs with your inherent knowledge and passion. 

According to the IRS, a prohibited transaction is improper use of an IRA account or annuity by the IRA owner, his or her beneficiary or any disqualified person. Examples of prohibited transactions with an IRA are borrowing money from it, selling property to it, using it as security for a loan and buying property for personal use (present or future) with IRA funds.

Equity Trust holds a variety of IRAs, as well as other self-directed accounts, including:

  • Traditional IRA
  • Roth IRA
  • Simple IRA
  • SEP IRA
  • Solo 401(k)
  • Roth Solo 401(k)
  • Health Savings Account (HSA)
  • Coverdell Education Savings Account (CESA)

With a self-directed IRA, your investments are up to you, within the bounds of the IRS rules and guidelines. The IRS does note provide guidance on what investment types are permitted, but dictates only what is NOT permitted. Examples of prohibited IRA investments include collectible (such as artwork, stamps, rugs, antiques and gems), certain coins and life insurance. See IRA Publication 590 for more information about prohibited investments.


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