You may have heard of Self-Directed IRAs. For example, you will have learned that you can invest in real estate with a Self-Directed IRA, which means that you can grow nontraditional retirement assets as part of an overall retirement strategy. You may have heard of a IRA administration firm, which allows you to manage these IRAs easily. But how do you know when a Self-Directed IRA administration firm is the right one for you? What separates a great IRA administration firm from the rest?
Here are some of the signs that you are working with a Self-Directed IRA administration firm that is worth its salt:
- Trustworthy people. Anytime you are working in the world of finance, you need to know that you are working with trustworthy people. That is always the first thing to look for. Try calling up the Self-Directed IRA administration firm to get an idea of how they sound. Do they sound like they care about the calls they receive? Do they actually sound like a professional business that’s on top of systems like the way they handle calls? These little indicators are not always a sign that everything is great, but it is a great way to get started with the process. It will also help you get familiar with the IRA administration firm.
- Consistent fees. You want a Self-Directed IRA administration firm where the fees remain the same even as your assets grow. Why? Because it means that you have more incentive to invest. The more you invest and the more you grow your IRA, the less the fees will be as a percentage of your overall retirement strategy. That means that the fees shrink relative to the value of your accounts. How often do you hear about expenses shrinking relative to the rest of your wealth-building plan? But with a good Self-Directed IRA administration firm, that is exactly what you will have.
- An investor-friendly approach. Many Self-Directed IRAs may charge you additional fees as you use more investments through them, with them acting as the custodian. Rather than charging a flat fee, they are willing to add on to your retirement account fees with every little addition you want to make. That is not a great way to build a system designed for administering IRAs. Your Self-Directed IRA administration firm should be willing to structure its services in a way that makes sense for investors.
- A good reputation. How is a reputation earned? By diligence. A Self-Directed IRA administration firm does not just happen into a good reputation. It earns it by working well with its clients over years and even decades. This is retirement we are talking about, after all, and a Self-Directed IRA administration firm cannot really boast a great reputation unless it has a track record that goes back years. Ask around about a Self-Directed IRA administration firm before you settle on one. This will help you get a sense of whether the IRA administration firm is right for you.
- Look for an abundance of information on the Self-Directed IRA administration firm’s website because information means they care about education. It means they care about diligence. It means they want to work with people who know what the IRA can do. And it shows that they care, period.
A Self-Directed IRA administration firm can do a lot to change your outlook on retirement—but the power rests with you. That is why it’s so important to know how to look for a great Self-Directed IRA administration firm.