<br /><br /> <br /><br /> <br /><br /><br /><br /><br /><br /><br /><br /><br />Asset diversification has long been touted as a<br />critical strategy for wealth building. This method of portfolio management,<br />which traditionally involves a mix of stocks, fixed assets and commodities<br />allows for maximum return at the least amount of risk — an important element<br />for retirement savings.<br /><br />One company with a strong foothold in this<br />investment space is Equity<br />Trust, a financial services company that allows<br />individual investors to diversify their retirement investment portfolios<br />through asset class options like private equity, precious metals, tax liens and<br />real estate among others. With over $25 billion in assets under custody and<br />administration as of the end of 2017, Equity Trust’s self-directed retirement<br />accounts have become a viable option for entrepreneurial investors seeking<br />control over their wealth building activities.<br /><br />Merging the Worlds of IRAs and Crypto<br /><br />Equity Trust recently launched a new digital<br />asset platform that allows individual retirement<br />accounts (IRAs) to invest in cryptocurrencies. It can be simple to open an account<br />online through myEQUITY (its online account system), or investors can call and<br />open an account through a senior account executive. <br /><br />The minimum investment required is $10,000 in<br />addition to a $500 nonrefundable fee for use of the digital asset platform.<br /><br />Through this platform, investors can purchase and<br />sell bitcoin, bitcoin cash, ether, ethereum classic, litecoin and XRP using a<br />trade-date-plus-one formula (i.e., next-day cash availability for sale<br />transactions). The industry-leading cycle starts when purchase/sell orders are<br />immediately filed by liquidity providers to lock in the price and exchange of<br />fiat and digital currency takes place the following morning.<br /><br />Because Internal Revenue Service (IRS) guidelines<br />treat crypto in a manner similar to real estate, an IRA offers some potential<br />tax advantages. If IRS guidelines are followed, taxes are deferred, meaning<br />that there are no immediate tax implications. By way of example, the major spike<br />in bitcoin prices in 2017 led to some major financial returns for investors in<br />this space, but it also resulted in a significant tax impact. If these<br />investments had been made through an IRA, taxes could have possibly been<br />deferred through retirement. <br /><br />This move on the part of Equity Trust to create a<br />digital currency platform signals demand on the part of clients and other<br />investors for tax-favorable investment vehicles like IRAs.<br /><br />This pioneering platform brings ease of use to<br />the digital currency investment process through a simple online interface.<br />Here, both individual investors as well as institutional professionals who<br />represent clients are able to rapidly place digital currency orders using funds<br />from IRAs. <br /><br />The emergence of the digital asset platform reflects<br />the most recent in a series of technology investments made by Equity Trust.<br />Dave Allen, Equity Trust’s COO, said “it demonstrates the company’s aim to<br />invest in technologies that align with a broader strategic approach of<br />delivering innovative, world-class products and services that maximize client<br />value while accelerating client access to alternative investments.” <br /><br />Equity Trust’s target market includes current<br />cryptocurrency investors desiring a long-term investment approach, where there<br />is the potential for wealth to be built over a number of years. Equity Trust’s platform<br />is also ideal for investors seeking a more diversified retirement portfolio who<br />may not have explored cryptocurrency in the past. <br /><br />One of the prized features of the platform is the<br />ability to connect a client’s Equity Trust account with a “cold storage”<br />facility, allowing for a secure long-term storage approach for digital<br />currency. This feature significantly mitigates the customer risks often<br />associated with the investor holding their own cryptocurrency keys.<br /><br />Allen indicated that a main factor that led the<br />company to pursue the intersection between IRAs and cryptocurrency was the<br />stated demand of Equity Trust’s existing clients.<br /><br />“Equity Trust has specialized expertise in<br />providing responsible access to alternative asset classes, ” he said. “And with<br />cryptocurrency emerging as an asset that’s experiencing increased demand,<br />investors are desiring tax-advantaged retirement options to invest in<br />cryptocurrency. It made sense for Equity Trust to apply its expertise in this<br />area and deliver a solution.”<br /><br />Note: Trading and investing<br />in digital assets is speculative and can be high risk. Based on the shifting<br />business and regulatory environment of such a new industry, this content should<br />not be considered investment or legal advice.<br /><br /> <br /><br /> This promoted article originally appeared on Bitcoin Magazine.