Why American IRA’s Fee Structure Makes More Sense—and Dollars
by Jim Hitt, American IRA
I nvestors are rightly concerned about strategy, long-term returns, and the past performance of underlying assets. But you know what falls too often by the wayside? Fees . This is especially true with Self-Directed IRA administration firms, in which investors can lose a sense of just how big a chunk fees can take out of their returns. At American IRA, we think fees that grow with your success are counterproductive. Why would you want to be charged a “success fee,” in so many words? That is why we have put together this quick comparison to show the difference between how we structure our fees: HOW AMERICAN IRA’S FEES DIFFER It is all based on a simple premise: your Self-Directed IRA company should not make more money just because you do. After all, the goal here is independence . Why should you be beholden to someone else’s fees when you start to see success?
Let us take a look at a comparison: • If you have 1 note and 2 properties in your IRA, our typical competitors will charge you $900/year or more. At American IRA you would only pay $285/year. • With an account value of $200,000, you will still pay American IRA only $285/ year. But our typical com- petitors may raise the rates on you, so now you are pay- ing $660/year or more. What does that mean? It means that American IRA’s Advantage Account Value Fees are going to remain static, even as your account grows. That, in turn, means that the percentage of the fees you pay go down the more you succeed. You are incentivized to invest and succeed, because the more you do, the less the fees are relative to the account. Another area to pay attention to whether fees increase with the number of assets in the account. For example, a typical competitor of ours may charge $300/year for a simple account with one asset in it.
But what if you have one note and two properties? Those fees may accelerate. Not so with American IRA’s Advantage Account Value Fees. Unlimited assets and unlimited account values come with a low, set annual fee. The result: you continue to pay the same fees as your account grows. The fees for the account are low and get lower relative to the account size if your account continues to move up over time. This is a key advantage over many of our competitors, who want to enjoy a piece of your success by charging you more as you improve. But we do not think that your accounts growing should be something that you deserve to be charged for. After all, that is the whole goal of retirement investing, isn’t it? •
For more information, give us a call at American IRA by dialing 866-7500-IRA or download our free “Essential Guide to Self-Directed IRAs” at AmericanIRA.com/essential-guide.
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