Self-directed IRA custodian Equity Trust Company announced the launch of the Universal IRA, a plan that allows customers to invest in traditional and alternative assets within a single IRA.
Equity Trust clients will be able to use a single login and platform to access stocks and bonds, as well as alternative investments including real estate, private equity and cryptocurrency. The Universal IRA will eliminate the need for investors to manage multiple IRA accounts to achieve portfolio diversification.
According to Casey Roberts, chief business development officer with Equity Trust Company, the custodian serves investors who are primarily interested in alternative assets. In surveys, these clients have noted a gap in access to both traditional and alternative asset classes. In addition, company executives noted that clients would routinely shift assets away from Equity Trust to competing firms. These factors prompted the introduction of Equity Trust Company Brokerage, which provides access to discount brokerage, and the Universal IRA.
“You have all the tax advantages of the IRA, combined with access to alternative and traditional investing in a way that I don't think others are able to,” Roberts said. “We really focused on removing friction within the process and giving customers access not only to public markets, but also to private markets.”
The alternatives available within the Universal IRA will fall into three buckets, he said. Equity Trust allows clients to source or bring their own investments into the account, which typically include real estate in the form of fix-up or flip projects or multifamily/commercial assets. The firm also has a digital asset platform where clients can buy, sell or hold 16 types of cryptocurrencies within an IRA. Additionally, about a year ago, Equity Trust launched a tool called WealthBridge, which gives clients access to alternative investments ranging from private equity and private debt to real estate through a partnership with the markets investment platform private YieldStreet.
A 2023 SDIRA Investor Survey report from Strata Trust Company, which included approximately 1,300 self-directed IRA investors, found that 24% of respondents expected private equity to be their primary investment sector over the next 12 to 24 months in the following. Another 14% pointed to real estate and 5% identified private debt as their primary investment sectors for that time period. Only 4% indicated that public investment would be the main focus of their investment over the 12-24-month period.
“After 50 years of helping investors achieve their retirement goals, we are excited to introduce the Universal IRA, an offering designed to meet the evolving needs of today's investors,” said George Sullivan, CEO of Equity The trust, in a statement. “This revolutionary IRA combines the stability of traditional investments with the expanded possibilities of alternative assets, providing our clients with a powerful tool to build a more resilient and diversified retirement portfolio.”