Learn How to Choose a Self Directed IRA Custodian
Choosing a self-directed IRA custodian is the biggest task for an investor. The choice will affect your investments, the amount of time spent managing them, and performance. It’d be unwise to do business with the first IRA custodian you came across, instead you ought to do your research on a number of them and then select the one that meets your needs. You want an IRA custodian who’s competent, a right fit for you, and one that meets all the Internal Revenue Service requirements.
And so, what are the factors to consider when choosing a self-directed IRA custodian?
#1. Specialization: Although a specialist in traditional investment could make a great self-directed IRA custodian, the best self-directed IRA custodian should be a specialist in alternative investments like real estate and precious metals. Naturally, an IRA custodian who specializes in traditional investments is unlikely to be the best custodian for alternative investment like physical gold and silver.
#2. Service: Service is made up of a blend of important components such as: custodian depth of knowledge, timeliness of response, precision, consistency of a process, quick resolution to an issue, and willingness to adapt to an ever changing environment. An Ay-hole is the last thing you want.
#3. Transactions: How will your investment work? Are you buying one asset and holding it for years or are you buying and selling at a profit continually? You want a custodian who’s flexible enough to allow for your investment model. If, for instance, your custodian will not perform transactions as quickly as needed, then your IRA investment suffers.
#4. Fees: Self-directed IRA custodians follow these two models to charge fees: either a transaction fee model or an asset-based fee model. You want to choose a custodian charging what you consider within reason.
#5. Professionalism: When you call their office, does their spouse answer and give you a half-ass monologue? You don’t want that kind of a custodian.
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