{"id":34308,"date":"2020-08-03T04:35:32","date_gmt":"2020-08-03T11:35:32","guid":{"rendered":"https:\/\/goldco.com\/?p=34308"},"modified":"2024-09-03T19:23:48","modified_gmt":"2024-09-04T02:23:48","slug":"5-things-to-look-for-in-a-self-directed-ira","status":"publish","type":"post","link":"https:\/\/goldco.com\/5-things-to-look-for-in-a-self-directed-ira\/","title":{"rendered":"5 Things to Look for in a Self-Directed IRA"},"content":{"rendered":"

Many investors may not be familiar with the concept of a self-directed IRA<\/a>. They\u2019re so blinded by the mainstream financial media that they think there\u2019s no other way to invest in an IRA than through a traditional brokerage or bank. But failing to realize the existence of self-directed IRAs, and how to invest in them, can leave them missing out on many opportunities to make great investment gains.<\/p>\n

Self-directed IRAs are those in which you, the investor, direct your IRA towards the investments of your choice. Aside from certain prohibited transactions and investing in collectibles, the sky is the limit when it comes to investing with a self-directed IRA. Whether you want to invest in real estate, speculate in commodities, or open a gold IRA<\/a>, your options are nearly endless.<\/p>\n

Before you decide to open a self-directed IRA, however, there are a few things you need to think about. Just like any IRA, opening a self-directed IRA requires working with companies that offer IRA services. If you want to invest in a gold IRA, you\u2019re not going to want to work with a company that specializes in real estate. Or, if you want to invest in real estate, you won\u2019t want to work with a company that specializes in agricultural commodities.<\/p>\n

Typically, there are companies who specialize in helping investors with the specific assets that can go into a self-directed IRA. Here are five things to look for in those companies before you open your self-directed IRA.<\/p>\n

1. Knowledgeable Staff<\/h2>\n

Probably the number one complaint that most self-directed IRA investors have is dealing with staff who don\u2019t know their stuff. You\u2019re the investor, and they\u2019re supposed to be the experts. So, if they\u2019re talking in circles but not really saying anything, or giving you information that you know is wrong, can you really trust them?<\/p>\n

Dealing with people who don\u2019t know what they\u2019re doing can cost you dearly. If you\u2019re engaged in a 401(k) rollover<\/a>, for instance, things have to be done very specifically and in a timely manner, otherwise you could be on the hook for taxes and penalties. The last thing you want is to deal with a company that drags its feet or doesn\u2019t know the tax laws and ends up costing you money.<\/p>\n

2. Customer Service<\/h2>\n

Good customer service from a self-directed IRA company can mean many different things. On the one hand, it\u2019s very important that you\u2019re able to talk to a real person when you need to. The last thing anyone wants is to have to go through a complicated phone tree, wait on hold for several minutes, then finally get someone who may or may not be able to help you. Direct contact with the staff you work with is vitally important.<\/p>\n

Then, the general manner of the people you work with is important. Are they friendly? Do they value your time? Do you get the sense that they really care about you and want to see you succeed in your investments? Or do they come across as lazy, disinterested, and just looking to hang up the phone as soon as they can? Your first impression on the phone could give you everything you need to know about the quality of the company you\u2019re working with.<\/p>\n

3. Low Fees<\/h2>\n

One of the most important things to investors is paying low fees, or at least fees that are low relative to your returns. If you\u2019re gaining 10% per year but paying fees that total 4%, your total returns are going to suffer. You\u2019ll want to find out how much you have to pay for account maintenance fees, storage fees, etc. You also want to consider whether fees are fixed or on a sliding scale.<\/p>\n

When it comes to a self-directed IRA, remember that you are in charge and responsible for your investment performance. Make sure to shop around to find the best deal you can.<\/p>\n

4. Experienced Custodians<\/h2>\n

When it comes to selecting a self-directed IRA custodian, you\u2019ll first need to find one who specializes in the assets you invest in. Then you\u2019ll want to select one with a track record of exemplary customer service.<\/p>\n

Typically, choosing a custodian experienced with your specific assets is the best choice. That\u2019s especially true when you\u2019re dealing with precious metals such as gold and silver. You\u2019ll want to look for a seasoned custodian that has been trusted by thousands of customers and that has years and years of experience storing, shipping, and safeguarding precious metals. When you\u2019re investing tens or hundreds of thousands of dollars that you\u2019ve spent a lifetime accumulating, you can\u2019t be too careful with protecting your assets.<\/p>\n

With a self-directed IRA custodian, you\u2019re going to want to know many of the same things as with any other self-directed IRA company. Do the custodial employees know what they\u2019re doing? Are they easy to get a hold of? And do they have a quick and easy (ideally online) way for you to check up on your self-directed IRA holdings whenever you want to? These are important questions to ask before you trust any custodian with your assets.<\/p>\n

5. Information and Transparency<\/h2>\n

Sometimes you want to find out more about a self-directed IRA before you make the decision to open one. Perusing various websites of self-directed IRA companies can be a good way to figure out how open and transparent these companies are before you deal with them.<\/p>\n

Research their websites and notice how much detail they use to describe the process of opening a self-directed IRA. Check that they answer questions like:<\/p>\n