Please note: Call center hours expanded to open at 8:00 am EDT to better serve our clients.
Visit our Coronavirus Resource Center for important updates and resources to help you navigate this time (this resource center also includes information related to the CARES Act and IRS Tax Deadline updates).


ETC News

Self-Directed Investor of the Year Hall of Fame

November 20, 2019

2017: Brian – Tennessee

Brian grew his four children’s Coverdell Education Savings Accounts (CESAs) in a relatively short amount of time by co-investing his IRA with their CESAs to invest in land. One property was purchased for $8,000 and sold 60 days later for $60,000. The other was bought for approximately $120,000 and sold for $200,000.

2016: David – Ohio

David’s IRA purchased a house in his rural neighborhood after the previous owners struggled to pay bills and maintain it. He now rents the property to a retired veteran and his wife. His IRA is receiving rental payments, and the property was recently appraised for $50,000 more than the purchase price.

2015: Lowell – California

Retired teacher Lowell rolled his retirement plan into a self-directed IRA and has grown his retirement account faster by using funds from his IRA to complete real estate rehabs, in addition to improving his community. One of his recent investments earned a 77-percent profit.

2014: Arnold – Michigan

Arnold completed a long-distance real estate rehab in Hilton Head, S.C., transforming a property into a profitable vacation rental. The investment is currently netting him approximately a 33-percent return each year.

2013: John – Indiana

John bought a 12-unit apartment building that had delinquent taxes at a city sale for $3,500. His IRA hired contractors to rehab the property and is receiving steady rental income from all the units. Some of the tenants were found through a program that assists local veterans to find housing.

2012: Richard – New Jersey

Richard found an enterprising way to grow his daughter’s Coverdell Education Savings Account (CESA).

Richard bought a $100,000 note at a discount for $90,000. He used $500 from his daughter’s CESA to purchase the option to buy the note for $89,500 (with the initial $500, a total of $90,000).

Richard sold the option to two investors for $5,500. Those investors acquired the note for $89,500 and collected the $100,000 from the borrower.

His daughter’s CESA received the $500 option fee back plus a net gain of $5,000.

2019 Winner: You?

Have you completed a self-directed investment in 2019 that you think is worthy of the title Self-Directed Investor of the Year? Submit your entry before December 20, 2019. The grand-prize winner will have his or her Equity Trust annual maintenance fee waived for the account holder’s lifetime!*

*Awarded to account holder, with a maximum value of $500 per year for one account.

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

Have Questions?

Get answers to your questions and learn more about building wealth with tax advantaged accounts.

Contact Us