EFAM | Escape From America Magazine

How to Smash and Eliminate Self Directed IRA Custodian Fees

You don’t have to carry a heavy custodian fee

If you have a retirement account and you are buying real estate you have to read this.

The secret is out and everyone knows that retirement accounts including self directed IRAs and 401(k)s can own real estate.

More retirement accounts began acquiring real estate in 2010 than in the three preceding years.  The reason is simple; at today’s house prices you can obtain passive rental returns without any trouble, yielding 8-12% and in some cases, much more.

The drop in home prices throughout the U.S. has retirement accounts scrambling for undervalued houses in markets that have above average rents as well as a huge upside because they are in the path of progress.

By now everyone realizes that for house values to rise, the demand must be greater than the supply.  What is driving demand right now is primarily private investors with a long term view of appreciation.  Follow the jobs and corporations that are relocating to warmer climates and friendlier tax states, you’ll find the right people behind them.

I can think of no better use for retirement funds than to buy well located cash flow real estate.  Buying new houses for less than new home construction is the safest bet for retirement accounts especially when you realize that houses pay above average dividends every month in the form of rent.  Try getting cash flow out of your stock portfolio, gold investments, CDs or tax liens.  Forget about it!  Nothing is safer in today’s market and nothing will produce cash flow like well located, free and clear houses.

But what’s all the buzz about checkbook IRAs or IRA LLCs?  And why do self directed IRA custodians and self directed IRA administrators charge so much for transaction fees and annual valuation fees?  And why is a solo 401(k) hands down a superlative retirement account over self directed IRAs?

These are the questions that everyone that has a retirement account or is getting one needs to know the answers to.

In this article, we are going to get down and dirty about the exorbitant fees that custodians charge and explain how you can virtually eliminate them and keep your retirement money in your retirement account for investment purposes.

First of all, let’s look at institutional IRA custodians like Merrill Lynch or Fidelity.  These custodians have minimal fees and you have minimal choices of what products they sell.  If you want to “crap shoot” your retirement account just let them make all the decisions for you.  Personally, I would be scared to have some snot nose kid just out of college advising me of what stocks or mutual funds to buy.   I only like to take business advice from people who have experience in business.  Before you give your blessing for someone to manage your $100,000 plus portfolio, give thought to the question: “How much of their own money do they have in the very investments they are making for me?”  Seriously, would you trust your money to someone that doesn’t have two cents to rub together?  Well, that’s about what you’re doing here and as long as you want to let someone else set the course for your retirement – so be it.

There is a better way.

For those who prefer to guide and direct their investments into assets they know and understand; use a self directed IRA or a solo 401(k) for your retirement account.

Self directed means you get to decide what you want to invest in as long as it’s not in life insurance policies or collectables.  Of course you can’t self deal and there are prohibited transactions but that is not the scope of this article.  For more information on prohibited transactions go to www.trustetc.com or www.entrustgroup.com.

The above links are for Equity Trust Company and Entrust Administration.  The largest IRA custodian is Equity Trust and the largest administrator in the country is Entrust Administration.  They are excellent at what they do but their fees can take the wind out of retirement account sails.  These firms have reasonable start up fees just like the cocaine dealer that gets you started.  But the long term cost of doing business with them will hurt you and once you get hooked, it’s over.

You see, every which way you turn with these companies they nail you with transaction fees, wire fees, cashier’s check fees, and same day service fees but the real killer is the annual valuation fees.  The more your account is worth, the more your annual valuation fee is and we’ve seen them as high as $1,500 per year.

Instead of that money compounding tax free for your retirement you have to pay them every time you do a deal and then they clobber you at the end of the year.  That annual fee gives me a weird feeling of estate taxes.  The more you make and have, the more they take.  There is a much better way for self directed accounts!

  • How would you like to avoid transaction fees of every kind?
  • How would you like complete control of your retirement account checkbook?
  • How would you like to avoid the cost of the IRA LLC, real estate IRA, or checkbook IRA and their annual fees?
  • How would you like to avoid UDFI (unrelated debt financial income) when using leverage in your IRA?
  • How would you like to be able to personally borrow $50,000 from your retirement account without a penalty?
  • How would you like to contribute up to $49,000 individually and $98,000 if marries into your retirement account?

If you answered yes to any of the above questions and you have a family owned business, are an investor, contractor or attorney, than we can help you.  Your clear choice would be a solo 401(k) for retirement account purposes.

Even if you don’t have a family owned business you could still avoid all the above fees with a self directed IRA simply by using our attorney approved Personal Property Trust.

Every dollar you save in expenses is equivalent to another dollar earned.

When you pay exorbitant fees to IRA custodians, you not only lose the money of those fees, but you lose the future income of the money you paid them.  Your retirement accounts should be streamlined for investments that will replace the income from your job when and if you ever retire.

CompleteIRA.com is a full service facilitator for self directed IRAs and solo 401(k)s.  Thousands of clients have rolled their accounts over to us or started new accounts for the following reasons:

1.  Our cost savings

2.  Our street smart strategies for retirement accounts

3.  Our proprietary Personal Property Trust for self directed IRAs which avoids the cost and hassle of an IRA LLC or as others call it, a real estate IRA.

4.  Our free analysis of investments for you.  Custodians and administrators are specifically restricted from doing this and it is a big “no no” if they ever get caught doing this

5.  Free lifetime support on your accounts

In my former occupation, I was a financial planner and the valuable experience I have gained working on my own accounts enables me to assist you.

Over ten years of creating retirement accounts for our satisfied clients has positioned us to help you.

Call today at (888) 252-5851 or email me at joshua@completeIRA.com.

I can also show you how to avoid the flat annual fee for life!

Joshua Sharp

CEO

www.CompleteIRA.com

http://BuyCashFlowProperties.EscapeArtist.com

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2 Comments

  1. Rod October 5, 2011 at 8:07 pm

    Hello, I have been researching this and was considering a solok. Can you tell me what your costs are?

    Thank You

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