Post-Holiday Financial Reset: Revisit Your Retirement Plan with a Self-Directed IRA

The start of the year often brings a return to routine and with it, a clearer view of your financial position. Account statements arrive, spending from the holidays is fresh in your mind, and investments you considered in late 2024 may feel newly relevant.

For many, this quieter period is an opportunity to revisit goals that were put on hold during a busy holiday season. It’s a time when long-term planning starts to feel actionable.

Why financial goals resurface in January

Early in the year, some individuals begin reviewing account performance, organizing tax documents, or thinking through next steps for their retirement savings. It’s not always about setting new goals. In many cases, it’s about following through on ideas that have been on the radar for months.

This might include consolidating old retirement accounts, evaluating rollover options, or exploring investment choices that better align with your knowledge and interests.

Investing in what you know

If you have experience in real estate, private lending, or a specific industry, traditional retirement accounts may not reflect your preferred approach to investing.

A common scenario: funds remain allocated to mutual funds selected through a former employer’s 401(k), while you have deeper insight into assets outside of public markets.

That disconnect is what leads some investors to consider self-directed IRAs.

Self-directed IRAs provide the same tax advantages as Traditional or Roth IRAs but with more flexibility in the types of assets you can hold.

Examples of alternative assets:

• Residential or commercial real estate
• Private equity or startup investments
• Promissory notes and private lending
• Cryptocurrency and digital assets
• Precious metals

Some individuals use this time of year to roll over legacy accounts and fund an investment they’ve been tracking. Others look to apply gains from existing crypto holdings into a Roth IRA for tax-free growth.

The key benefit: you’re applying what you already know while preserving the tax treatment of a retirement account.

How self-directed IRAs work

A self-directed IRA is held by a custodian that specializes in alternative assets. As the account holder, you select the investment and direct the custodian to carry out the transaction.

Here’s how it often works:

1. You open and fund your self-directed IRA.
2. You find the investment opportunity and direct your IRA in the investment.
3. Your custodian processes and funds the investment.
4. The asset is held in the name of the IRA.
5. All income and expenses flow through the IRA.

This structure gives you more control over where your retirement funds are invested, while the custodian handles administration, recordkeeping, and IRS reporting.

Why investors choose Equity Trust

When you’re ready to take a more active role in managing your retirement savings, choosing an experienced custodian is important.

Equity Trust has supported investors for over 50 years. Voted Best Overall Self-Directed IRA Company by Investopedia, we serve individuals across a range of asset types from rental properties to private equity to precious metals.

Working with Equity Trust means:

• Support for a wide range of alternative assets
• Online tools to manage your account securely
• Educational content focused on self-directed investing
• Dedicated service from professionals familiar with alternative investments

Many clients reach out in January when they’re ready to act on an opportunity they’ve been researching. The combination of fresh motivation and arriving financial documents makes it feel like a natural time to take the next step.

Three signs it may be time to consider a self-directed IRA

If you’re evaluating your retirement accounts this month, here are a few indicators that a self-directed IRA might be worth exploring:

1. You have investment knowledge outside of public markets

Real estate professionals, business owners, and others with industry insight often want to apply that knowledge to their retirement savings. A self-directed IRA gives you the flexibility to invest in areas where you already have experience.

2. You’ve found an opportunity, but your funds are tied up

If your retirement assets are stuck in a traditional IRA or former 401(k), you may be missing out on opportunities you’ve already vetted. A self-directed IRA can give you access to capital for investments you understand.

3. Your current portfolio doesn’t reflect your skills

If you’re more confident analyzing rental income or private deals than stock performance, your retirement strategy might be out of sync with your skill set. A self-directed IRA helps bring your investing approach and account options into alignment.

Align your IRA with your knowledge

If you’re considering how a self-directed IRA could support your retirement goals, it might be time to take action. Schedule a call with an IRA Counselor to review how you could get started today.

Equity Trust Company is a directed custodian and does not provide tax, legal, or investment advice. Any information communicated by Equity Trust Company is for educational purposes only, and should not be construed as tax, legal or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional.