A Self-Directed IRA Custodian is a financial institution that provides custodial services for self-directed retirement accounts. But not all Self-Directed IRA Custodians are created equal. So, what separates the good from the bad? Here are four qualities that the best Self-Directed IRA Custodians have in common.
- A Good Self-Directed IRA Custodian Has Low Fees
First and foremost, the best Self-Directed IRA Custodians have low, static fees. This is important because every dollar you pay in fees is one less dollar that you have working for you. When you’re trying to grow your retirement nest egg, every fee counts. The best custodians understand this and charge low fees accordingly.
It’s not just the “lowness” of the fees you should look for, however. You should also pay attention to the types of fees that your Self-Directed IRA Custodian will charge. That typically means delineating between two potential fee structures:
- Dynamic fees. Dynamic fees mean that the fees can grow with the size of the account. This is a common practice for many Self-Directed IRA administration firms, and it’s not to your advantage. Why? Because just as your account is growing in value and adding new assets—when you should be saving more money for your own retirement—the Self-Directed IRA Custodian earns more, too. This eats into your potential savings.
- Static fees. This is what we offer here at American IRA, and it’s an advantage for one reason: it keeps the fees low even if your account grows. That means that even as you add new assets to the account, you can still rely on paying a predictable fee. As your account grows in size, that fee can remain the same. This gives you more wiggle room for saving for retirement.
- They Offer a Wide range of Investment Options
The best Self-Directed IRA Custodians also offer a wide range of investment options. This is important because it allows you to diversify your portfolio and invest in the types of assets that you’re most interested in. Some custodians only offer traditional investments like stocks and bonds, while others also offer alternative investments like real estate and precious metals. The best custodians offer a wide range of options so that you can choose the investments that are right for you.
- They Provide Excellent Customer Service
Another quality that the best Self-Directed IRA Custodians share is excellent customer service. This is important because when you have questions about your account or your investments, you want to be able to get answers from a knowledgeable and helpful customer service representative. The best custodians have friendly and helpful customer service representatives who are always available to answer your questions.
- They Are Trustworthy
Finally, the best Self-Directed IRA Custodians are trustworthy. This is important because you’re entrusting your hard-earned retirement savings to them. You want to be confident that your money is safe and secure with them. The best custodians are those that have a long track record of providing Custodial services without any major problems or complaints.
When choosing a Self-Directed IRA Custodian, it’s important to choose one that has low fees, offers a wide range of investment options, provides excellent customer service, and is trustworthy. By keeping these four qualities in mind, you can be sure that you’re choosing the best possible custodian for your retirement savings.