require a lot of ongoing maintenance, a lower level of responsiveness may be satisfactory. If your investment requires a fair amount of maintenance (rental property or rehabs) then you will need a provider with a higher level of re- sponsiveness. If you’ll need guidance on the rules governing IRAs, then good customer service will be essential. Lastly, compare cost. Although you do not want to overpay, remember you do get what you pay for. You should consider all fees you will pay each year for your invest- ment (from purchase to sale). Ask your prospective providers to give you a detailed estimate of fees for each year of your in- vestment. Don’t just look at websites. Beware of marketing material that makes comparisons based on short or unusual time frames. You should ask if
custodial fees are billed separately from administrative fees, when these fees are charged and what exactly is covered by administrative fees. For instance, is there a separate charge to sign documents, incoming funds or check fees? (If you go the checkbook IRA route, don’t forget about state registration and resident agent fees.) Ask your prospective provid- er if all the fees are listed in one place. You want to able to see all the possible fees and services you may need. In selecting your provider, keep in mind that you are purchasing services, not a commodity. In real estate, you are trying to build your team. The provider should add value to your team. If you are getting conflicting information from your team (lawyer, CPA, etc.) your provider should be willing to discuss issues with them. If a
provider’s level of service is less than you need, there will be delays, and this will cost you money and maybe investments. All providers should be able to tell you about permissible investments and prohibited transactions, but the best providers will be able (and willing) to tell you about the structure of invest- ments and contrast those investment purchases in retirement plans versus outside of retirement plans. Remember, however, that self-direct- ed IRA providers are not your advisers. They will not comment as to whether an investment is “good.” A self-directed IRA is a sophisticated investment model and a powerful tool for building your wealth. Be sure to choose a provider that is in sync with your investment model and is a good fit for you. •
BY JACK KILEY, CPA, CISP
John “Jack” F. Kiley is a Certified Public Accountant (CPA) and Certified IRA Services Professional (CISP). He is Managing Partner in MidAtlantic IRA, LLC, and John Kiley CPA, LLC. Kiley has extensive knowledge in developing tax, retirement and financial planning strategies for high-net-worth individuals and closely held businesses. 240-575-3880 | www.midatlanticira.com
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