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Real Life Examples

Discovering the Path to Tax-Free Wealth: Real Stories of Roth IRA Investments

November 13, 2019
“I’m pretty young. I can benefit from the tax savings a Roth account offers, so it’s a great retirement and savings vehicle for me.”
Ryan, Investor, Maryland

Real-Life Roth IRA Investments: Building Tax-Free Wealth with a Variety of Strategies

>> Start Your Path to Tax-Free Wealth: Open Your Roth IRA Online <<

Powerful Potential of Partnering with Your Roth IRA

Some Equity Trust clients have started earning tax-free profits and building their Roth IRA balance by co-investing with other retirement accounts or funding sources.

Partnering could be a strategy for investors with limited funds in their Roth IRA, but are hoping to start building their tax-free retirement savings.

  • Read how Laurel partnered her LLC with her Roth IRA to purchase a condo when she didn’t have enough in her Roth to purchase the property outright. “My goal is to grow my Roth IRA so that it can buy a property outright, without partnering with my LLC,” Laurel says.
  • See how Brian used a partnering strategy on two investments to build wealth for his entire family. “I love that I was able to partner everyone’s accounts and make about $80,000 in profit for our family,” Brian says about one investment involving his Roth IRA, his wife’s Roth IRA, and three Coverdell Education Savings Accounts for his children.

Where Does the Path Lead? The Freedom of a Tax-Free Retirement

After years of saving and investing in the tax-free environment of a Roth IRA, the end result is tax-free income. Distributions from a Roth IRA are tax-free after age 59½ if the funds have been in the account for at least five years.

For Scott and Christine, two Equity Trust clients from New York, that equals freedom. They’re investing to travel across the country in an RV full-time, visiting family and helping other real estate investors.

As Scott and Christine’s plan to travel takes shape, they will sell a handful of properties owned in their retirement accounts. That will produce the cash flow to support them. They also plan to continue to earn tax-free profits by loaning money from their Roth IRA to other investors.

“It’s been great for us,” Christine says of self-directed investing. She adds that they’ve never had any retirement accounts through their employers, but self-directed real estate investing has given them the power to retire on their terms. “We have control this way.”

To learn more about how to get started with a self-directed Roth IRA, schedule a consultation with an Equity Trust Senior Account Executive.

Case studies provided are for illustrative and educational purposes only. Past performance is not indicative of future results. Investing involves risk, including the possible loss of principal. Information included in the case studies was provided by the investors and included with permission. Equity Trust Company does not independently verify all information provided by third parties.

No. Per IRS guidelines, rollovers from a qualified plan can be rolled over into a traditional or Roth IRA. If the rollover is made directly to the Roth IRA, the transferred amount is subject to income taxation but avoids the 10-percent early distribution penalty. You should consult with your plan administrator regarding the permissible withdrawal options allowed under the tax-qualified plan.

The fees for self-directed IRAs or other retirement accounts are dependent on the custodian. Equity Trust has a straightforward fee schedule.


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