INVESTOR REVIEW
Have you thought about opening a Self-Directed IRAbut just haven’t taken the next step? Have you discovered that you’re not workingwith aCustodian? Fed upwith your current Self-Directed IRAAdministrator?
PAID ADVERTISEMENT: PREFERRED TRUST
FINANCIAL EDITION
We are so con dent that we can provide you a superior customer experience that we will prove it! We’re waiving the Establishment and First Year Administration Fees just so you can try us . That’s aminimumvalue of $350. We believe that after you have experienced the di erence at Preferred Trust you will want to stay with us for years to come. Go online to our website and complete an Self-Directed IRAApplicationNow! the Now is the time to EXPERIENCE Difference P REFERRED T RUST C OMPANY 2140 E Pebble Road, Suite 140 | Las Vegas, NV 89123 | 888.990.7892 | PREFERREDTRUSTCOMPANY.COM We are a Self-Directed IRA Custodian! PREFERRED TRUST COMPANY, LLC (“Preferred Trust”) | 2140 E Pebble Road | Suite 140 | Las Vegas, NV 89123 | 702.990.7892 | www.preferredtrustcompany.com | Financial Institutions Division of Nevada License No. TR1002. Preferred Trust performs duties of a custodian and as such, does not sell investments or provide investment, tax, or legal advice. Preferred Trust is committed to safeguarding all non-public personal information provided to us by our customers. PreferredTrust collects, retains, and uses customer information where we reasonably believe that it will help administer our business or provide services to our customers. We collect and retain customer information only for speci c business purposes and upon request will inform customers why we are collecting and retaining the information. We use information to protect and administer records, accounts, and funds; to comply with certain laws and regulations; to help us design or improve our services; and to understand the nancial needs of our customers. Preferred Trust is an accredited member of the Better Business Bureau. S
Preferred Trust L ast month I met with a potential client, who was unhappy with the service he was receiving through the company that was currently servicing his Self-Directed IRA. He described the challenges he faced trying to fund his investments, get paperwork completed, and the lack of communication between all the parties involved. I finally had to point out to him that part of the prob- lem was that he was working with an Administrator, not a Custodian. He kept inquiring about our relation- ship with the bank and how quickly could we access funds. I responded, “We are the Bank”. This is a highly intelli- gent and business savvy person and he stared back at me with a blank face. I explained to him that all IRA service provides are not created equal; that they are not governed or regulated the same. I explained to him the difference be- tween Custodians, Administrators and Facilitators. After speaking with him, I wondered, how many other people don’t understand the difference? When selecting a self-directed IRA service provider it is important to look through all the hype out there and focus on what is important – THE SECURI- TY OF YOUR FUNDS. More and more people are seeking ways to take more control of their retirement portfolio, which has led to IRA service providers popping up all over the place. So, what does this mean to you? If you Google “self-directed IRA,” you’ll get over 1.6 million results ranging from advice and education, to “how to get started today!” While it may appear on the surface that all of these companies follow the same IRA rules and provide the same service, the truth is they do not. Knowing the distinctions between them can have an impact on the security
of your retirement portfolio and/or put restrictions on your investment choices. How do you decide which self-directed IRA company is right for you? You must first understand the distinction between custodian, administrator, and facilitator. These entities represent varying levels of service, expertise and risk. The chart above provides an overview of the differences. The most important component is that an IRA custodian is the only entity in this group that is regulated and authorized by the Internal Revenue Ser- vice (IRS) to act as an IRA custodian. Because custodians are subject to regu- latory oversight at the federal and state level, there is comfort and trustwor- thiness that is not there with the other entities. In addition, an IRA custodian provides the most comprehensive IRA services from cradle to grave. IRA administrators and facilitators on the other hand work under a different set of IRA rules. Since they are not able to custody cash or investments, their only essential act is as intermediaries between the client and a partner cus- todian. Administrators, as their name describes are able to process paperwork, while facilitators most often special- ize in helping clients to set up single
member LLCs and C Corporation IRAs (commonly referred to as a Checkbook IRA or LLCs). With no oversight or annual exam- ination to worry about, administrators and facilitators can afford to be liberal in terms of accepting investments. This leaves IRA account owners open to unknowingly engaging in a prohib- ited transaction which can lead to a disqualification of the entire IRA and potentially expensive tax repercussions. Since many of these companies align themselves with investment sponsors, their priority is to sell you something that they will make money on, rather than facilitate a compliant investment strategy that is right for you. Preferred Trust is a custodian, not just an administrator or facilitator and as such, the security of your funds is our top priority and our exemplary customer service experience is the cherry on top! For more information regarding Custodians, Administrators and Facilitators, please visit http://www. innovativewealth.com/wealth-man- agement/research/self-directed-ira-in- dustry/the-ultimate-list-of-self-direct- ed-ira-custodians-and-administrators/ or www.irs.gov. •
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