How to Properly Evaluate a Self-Directed IRA Custodian

How to Properly Evaluate a Self-Directed IRA Custodian

Choosing a Self-Directed IRA custodian might sound simple on the outside. And it can be. But when you consider that this decision could potentially last you a lifetime—or at least until you start entering retirement age—you’ll see that it’s worth slowing down and getting your bearings. One good decision when you’re young can lead to a lifetime of prosperity through smart investments over time. And when it’s time to choose a Self-Directed IRA custodian to have in your corner as you take this journey, you definitely want to make sure the right people are on that team. Here’s what you’ll need to know.

Look for Low, Reasonable Fees

The first element you should consider is a matter of dollars and cents. You need to make sure that the Self-Directed IRA administration firm you’re considering working with has reasonable, and ideally static, fees. What are reasonable fees? Watch out for fees that grow too much as the size of your account grows. This will eat into your retirement returns, which isn’t the feeling you want to have when you expect your retirement account to be bigger than it is. When you’re talking about compounding returns for a long-term future of wealth and prosperity, any small dip in that compounding can take a major bite over the long haul.

American IRA, for example, offers static fees that don’t necessarily grow with your account size. This means if you have a successful investment within the Roth IRA, we don’t take additional fees simply because your account got bigger. Instead, you can keep paying the same fees. In proportion to the account, this actually shrinks the fees over time—assuming your account grows.

Look for Lots of Investment Options Available

This gets back to the first question in the world of Self-Directed IRAs—why self-direct at all? And one of the primary reasons that makes up the answer to this seminal question is simple: because you have more options when you invest with a Self-Directed IRA custodian who offers a lot of options. The full range of legitimate retirement assets is something that most investors might not even know about. But the IRS doesn’t prohibit you from investing in certain precious metals, for example, or in real estate. It’s only the custodian you choose that might limit you. (The IRS does prohibit some types of retirement assets in tax-protected accounts, such as life insurance or collectibles such as wine or fine art.)

Look for Great Customer Service

Imagine you found all of the above, but when you called in to the Self-Directed IRA custodian you hired to be on your side, you never got good customer service. Wouldn’t it all feel for naught? That’s why it’s so important to work with people that you trust. And when you want to issue a buy or sell order in your retirement account, you need to know that the custodian is going to be responsive to your needs. That’s why you should look for Self-Directed IRA administration firms who have a long track record of pleasing clients.

Look around. Browse their website. Do they have customer testimonials that rave about what a great job they’ve been doing? Can you find plenty of examples of happy clients? Can you see a lot of experience? Then there’s a good chance you’ve found the right custodian. For more information about us here at American IRA, and how we can fit these criteria for you, be sure to reach out to us by dialing our phone number here at 866-7500-IRA. We’ll be glad to talk.