Equity Trust Review

Introduction

Equity Trust is a well-established self-directed IRA custodian that has been in business for the past three decades and currently manages more than $25 billion in assets.

Investors can put their money into a wide range of assets, including real estate, tax liens, private loans, and private placements.

It offers a wide variety of alternative investments and has educated advisors, which makes it superior to other companies in many respects. These advisors assist clients in vetting investments and also offer services related to account support.

Company Background

Equity Trust boasts a long-standing presence in the industry, with over 45 years of experience in self-directed retirement accounts. As a custodian, they facilitate alternative investments within IRAs, enabling investors to diversify beyond traditional assets like stocks and bonds. Their commitment to innovation and customer empowerment sets them apart from other financial institutions.

Product Options Available from Equity Trust

Equity Trust is a custodian of alternative assets for retirement and other tax-advantaged accounts that have been approved by the Internal Revenue Service (IRS). It has over 130,000 user accounts and over 10,000 agreements with financial advisers, and it caters to both individual investors and institutional investors with its range of services.

Within a wide variety of tax-advantaged accounts, Equity Trust is an industry leader in the safekeeping of alternative investments such as real estate, notes, hedge funds, managed futures, gold, and cryptocurrency. These forms of investments are referred to as “alternative investments.” Individual retirement accounts (IRAs) of various varieties, such as regular IRAs, Roth IRAs, Flex IRAs, and 401(k)s, can fall into this category. 

The Internal Revenue Service gave Equity Trust its first approval as a non-bank-directed custodian in 1983, and since then, the company has evolved to become one of the most recognized businesses in the sector. It maintains a wide variety of strategic connections with many of the most highly regarded gold IRA firms. The Better Business Bureau has awarded Equity Trust with an A+ rating on multiple occasions. 

A User’s Perspective on Equity Trust

Individuals, their financial advisors, and brokers, as well as institutions, are some of the clients that Equity Trust serves in its capacity as an IRA custodian. Custodians are companies that are subject to a great deal of regulation and follow numerous criteria and regulations for custodial accounts. 

Since Equity Trust is a directed custodian, it does not offer advice on matters about taxes, the law, or investments. Additionally, it does not support or promote any items related to investments. Instead, it collaborates with investors or their dedicated teams to educate and provides new technology and custody of self-directed individual retirement accounts (IRAs). 

Individual investors have a method to get more control over their investment decisions and financial objectives through the use of Equity Trust. They get the ability to invest their retirement assets in alternative investments such as real estate, peer-to-peer lending solutions, foreign currencies, and cryptocurrencies by utilizing Equity Trust. These investments can be made in addition to traditional investments such as stocks, bonds, and mutual funds. 

Through Equity Trust, companies can establish retirement savings plans or tax-advantaged investment accounts for their staff members. Additionally, institutions and investment experts can give superior service to their customers as a result of the investment options offered by Equity Trust. 

Equity Trust Accounts

Equity Trust provides individual investors, financial professionals, and institutions with access to a comprehensive selection of investment products as well as accounts that provide favorable tax treatment.

IRA accounts that are traditional

A retirement account that provides tax breaks upon withdrawal is known as a classic individual retirement account, or IRA. You contribute pre-tax funds and access tax deductions. 

You won’t owe any taxes on the growth of your investments, and after you reach 59 and a half years old, you’ll be able to start taking withdrawals. If you decide to withdraw funds before the specified time, you can be subject to a penalty. Because withdrawals made during retirement are subject to income tax, this account is optimal for people who expect to be in the same or a lower tax bracket when they reach their golden years. 

401(k) Roth IRA

The primary difference between Roth IRAs and standard IRAs is that contributions to a Roth IRA can be made with after-tax income. To put it another way, you will be required to pay income taxes on your savings at present, but withdrawals made when you retire will be almost tax-free. If you are 49 years old or younger, the maximum annual contribution you can make is $6,000. If you are 50 years of age or older, this restriction will increase to $7,000.

Simplified Employee Pension, sometimes known as a “SEP,”

A plan known as a Simplified Employee Pension (SEP) provides business owners with the opportunity to make contributions to the retirement accounts of their employees in addition to their savings for retirement. SEP IRAs are the accounts into which most contributions are made.

(SIMPLE) stands for the Savings Incentive Match Plan for Employees.

Either an employer or a self-employed person can establish this kind of retirement plan. It makes it possible for qualifying employees and employers to make contributions to a Simplified Employee Retirement Account (SIMPLE IRA). It is an excellent option for sole entrepreneurs or small enterprises that do not provide their employees with access to a standard retirement plan. 

Solo 401(k)

Solo 401(k)s are retirement funds that have been developed specifically for those who are self-employed or who own firms that have no full-time employees other than the business owner and their spouse. It is possible to contribute up to $61,000 in pre-tax money, and the contribution cap will increase to $61,000 in 2022. If you are 50 years of age or older, this maximum will climb to $66,500.

Custodial Services

Savings accounts called custodial services, also referred to as custodial accounts, are ones that adults open on behalf of beneficiaries who are frequently minors or people under the age of 21. A child can open what is essentially an investment account in their name, but an adult will manage it, and the child won’t be able to access the money in the account until they reach a certain age. Custodial accounts can be used for a variety of purposes, including retirement, education, and general savings. 

HSA stands for “health savings account.”

These medical savings accounts come with favorable tax treatment because they are designed to assist individuals in meeting certain requirements for medical expenses. Contributions are made on a pre-tax basis and can be applied toward the coverage of expenditures like deductibles, copayments, and coinsurance premiums. The maximum allowable contributions for an individual plan with self-only coverage are $3,650, while those for family plans are $7,300.

Coverdell Education Savings Accounts (also known as CESAs) are available.

This is an investment account that offers favorable tax treatment to help pay for a child’s future education. The contributions are made on a pre-tax basis and can be used for anything from housing and textbooks to tuition and housing costs. The maximum amount that can be contributed each year is capped at $2,000.

Pros and Cons

Pros

  • Numerous alternative investments
  • High-quality customer service company.
  • Its transaction-free costs make it cheaper than most custodians.
  • Professional investment advisors.
  • Freely educates investors. 
  • Processes streamlined. 

Cons

  • No check writing.
  • No individualized advice. Its advisors don’t customize strategies for clients. These counselors act broadly.

Conclusion

Equity Trust has established itself as a leading provider of self-directed retirement accounts, offering investors the freedom to diversify their portfolios through alternative assets. With its extensive investment options, commitment to customer service, and educational resources, Equity Trust empowers individuals to take control of their financial future. While investors should carefully consider the associated fees, the potential benefits of self-directed investing make Equity Trust a compelling choice for those seeking to expand their investment horizons and achieve their long-term financial goals.