Your Stories

Supporting the American Dream

Kimberly uses her self-directed IRA to help a single mom achieve homeownership.

From a young age, Kimberly of California was instilled with the mindset that contributing to a better world means more than the distant act of writing a check to an organization. Recently, the longtime real estate investor put this practice into place by using her Equity Trust IRA to help a single mother achieve homeownership.

She discovered she could use her retirement funds to further social causes that matter to her while securing her financial future.

“The self-directed IRA was a brand-new concept to me, and I’ve been investing for over 36 years in my professional life in 401(k)s and IRAs,” Kimberly says. “I talked to my CPA and I said, ‘I’ve heard recently about self-directed IRAs, and I am really curious about them, but I need to know a little bit more of the ins and outs.’ He sat down with me and explained the options and he recommended Equity Trust right off the bat. He said, ‘They really know what they’re doing, and I recommend that you talk with them.’”

Kimberly started with $20,000 that she took out of a substantial existing IRA. She partnered with a friend for her first self-directed real estate investment, renting a house to a single mom with two children in New York state.

The renter approached the investors, saying she wanted to purchase the home.

“I'm a daughter of a Midwesterner, and a product of a Jesuit university, and I have been taught from a very early age to give back your whole life…Don't write the checks and have no connection to whatever your investment may be. Make it something that is really palpable and that you can feel the direct impact of.”

“When we heard about that, we were all behind it,” Kimberly recalls. “We’re doing this for a number of reasons: to make some money, and to help a person through their real estate journey. And everybody won.”

Raised to give back

Kimberly’s upbringing has instilled in her the importance of helping others.

“I’m a daughter of a Midwesterner, and a product of a Jesuit university, and I have been taught from a very early age to give back your whole life,” she says. “Don’t write the checks when you’re older. Don’t even write the checks when you’re younger and have no connection to whatever your investment may be. Make it something that is really palpable and that you can feel the direct impact of.

“And so, I’ve made sure that a lot of my investments have that social impact long before they really had a high return or started to have a high return. It’s just been something that I felt was important.”

‘In the driver’s seat’

Kimberly started investing in real estate about 20 years ago, but it wasn’t until recently that she learned she could use her IRA to fund her real estate investments, rather than just letting her retirement account sit in stocks and mutual funds.

“When I heard about (self-directed investing), I thought, ‘Ooh, here’s a chance for me to be a bit more in the driver’s seat.’ I like the idea of being able to allocate my funds towards projects in real estate in particular, which I think is a really smart way to go. And Equity Trust afforded that opportunity through the way that you manage this,” she says.

In addition to helping a mom realize a dream of homeownership, Kimberly is also impacting her own financial future.

“I did a little calculation this morning on my original investment in the account versus my return, and it looks to me as if it’s up about 24 percent, which makes me pretty happy, considering that my conventional IRA is that I have did close to maybe the low 30s, but I don’t think that they necessarily had the same impact,” she says. “I feel that we empowered someone along the way to become an homeowner for the first time, and there was nothing like that feeling. And it’s encouraged me to consider doing this again and again. I would really like to explore this further.”

Watch Kimberly’s entire video to get more details on the real estate transaction and learn how Kimberly is planning for her future.

Create Your Own Story: Discover what's possible with an Equity Trust Self-Directed account

Case studies are provided 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.

A Family Affair: Building Retirement Wealth and Providing Affordable Housing

New York investor Michelle and her family grew their self-directed IRAs while investing in affordable housing in the community.

Couple Dedicated to “Doing Good While Doing Well” with Real Estate

Cynthia and Kevin of Illinois use their self-directed Roth IRAs to help others find a path to homeownership while building a legacy for their family and community.

Contractor Uses IRA to Tackle Growing Housing Need

Tony of North Carolina uses his self-directed IRA to build senior-friendly housing and secure his own retirement.

Creating a Lasting Legacy by Investing in the Community

Lamberto found a way to benefit his family well into the future, while helping with housing and economic development in his area now.

Finding Community in Real Estate Note Investing

Tim of North Carolina finds hands-off note investing to be a refreshing change from corporate America.

Helping Small Businesses, Inspiring a Future Generation of Investors

Real estate investors Lorraine and Richard of Florida kept businesses afloat and showed kindness to renters who fell on hard times during the recession – while also inspiring their children to get involved in investing.

Real Estate IRA Income Opens Doors to Meaningful Community Causes

Wayne and his wife can participate in more causes that matter to them because of the real estate income generated in Wayne’s IRA.

Real Estate Investing Contributes to Economic Development

Jan of Missouri helps foster a sense of community and boost economic development through her high-quality renovations and by abiding by The Golden Rule.

Note Investing Helps Community and Future Generations Flourish

Gary’s self-directed investments are fueling local real estate and his family’s financial future. His only regret: not starting sooner.

Self-Directed Investing Fuels Couple’s Global Outreach

Brad and his wife’s missionary work wouldn’t be possible if it wasn’t for an investing strategy that enables him to build his wealth faster than by traditional means.

Lifting Neighborhoods While Recovering Stock Market Losses

After losing almost half his life savings, Mark of Ohio fought back to regain his financial independence, providing jobs and improving neighborhoods at the same time.

Using a Roth IRA to House Homeless Veterans and Refugees

John of Indianapolis has provided shelter for dozens of veterans, and more recently, Afghan refugees, through the properties held in his retirement account.