Today we shall look at the best self-directed ira custodians. In the recent past, we have seen a gradual increase in the number of investors seeking to diversify their retirement investment portfolios through opening self-directed IRAs (SDIRAs). To achieve this, these investors have to turn to reliable and efficient self-directed IRA custodians. If you are trying to take the route that these investors have taken, then you might want to read on till the end of this post to find out more. 

---

P.S.

See my Top-5 List of Gold & Silver IRA Solutions here

---

What is a self-directed IRA? 

A Self-directed IRA (SDIRA) is a special type of individual retirement account that allows investors to invest in a wide range of alternative assets. In this case, the term alternative assets refer to precious metals, cryptocurrencies, real estate, startups, agriculture, startups, and many more.

Another thing about SDIRAs is that they have tax benefits such as those presented by regular IRAs (e.g. Traditional and Roth IRAs), where you can stay clear from paying taxes during the investment period. You should, however, familiarize yourself with the taxation rules and other rules, in general, to avoid being on the wrong books with the IRS.

What are the Benefits of a Self-Directed IRA? | Top 3 Pros

---

How to open a self-directed IRA

The steps followed to open a self-directed IRA differ from one custodian to the other, but you will generally be required to follow the steps below:

1. Find a reliable custodian for your account
2. Fund your self-directed IRA through an IRA rollover, or by depositing a check (or any other payment method allowed). 
3. Select the investments you intend to make
4. Instruct the custodian to purchase the assets on your behalf. If you are investing in physical precious metals, you should also make arrangements for the storage of your assets in an IRS-approved depository. 
5. Track the performance of your investments. 

---

What are the advantages of a self-directed IRA?

Investing through a self-directed IRA offers a couple of unique benefits which include: 

1. Tax breaks on the returns from your investments.
2. Greater flexibility to hold the assets that you would prefer to hold in your account.
3. The opportunity to pick and stick with assets that align with your experience or passion.
4. Diversification of your retirement investment portfolio, in that you can hold assets whose price movements are negatively correlated.
5. The opportunity to hold assets that have a significantly higher chance of appreciating with time. 

---

What are the downsides of a self-directed IRA? 

Whereas investing through this type of IRA can present you with the opportunity to have a thrilling time during investment, it can also have some downsides, which include: 

• You are not allowed to invest in collectibles or life insurance
• Most assets in such accounts may have a higher risk ( but with the promise of higher returns). 
• Managing the SDIRA may be complex. 
• The fees and charges with such accounts may be higher.

---

Gold Investment Rules 

Note that self-directed IRA custodians play a passive role, and do not guide or limit your choice of investment provided that they are all legal and allowed for use in SDIRAs by the IRS. The custodian purchases your assets and keeps them for you until it is time to sell them.

Gold IRA Rules and Regulations | Put Gold in Your IRA 2022

---

Which are the best self-directed IRA custodians?

We reviewed several top self-directed IRA custodians using criteria such as investment options allowed, fees, how easy it is to set up an account, as well as customer service, and compiled a list of the top SDIRA custodians as below:

1. Equity Trust

Equity Trust Company was founded back in 1974 and is one of the oldest firms of its kind in this industry. It takes pride and claims to be the leading custodian for real estate investors, having purchased, sold, and funded more than 200,000 properties. This privately-owned firm is regulated under the South Dakota rules of trust companies. 

Besides being a go-to option for real estate owners, Equity Trust serves a significant number of investors who have their retirement investment funds held up in:

• Precious metals
• Private equity 
• Cryptocurrency 
• Oil and gas
• Livestock 
• Agriculture and farmland
• Mineral rights 
• Show horses
• Billboard signage 
• Movie productions 
• Equipment leasing 
• Account receivables 
• Royalty interests 
• Structured settlements

Equity Trust is known for having higher administration fees than those of its peers (they may range from $225 to about $2250 depending on the contents of your IRA), but it makes up for that by not charging transaction fees. This makes it a favorable option for investors who intend to carry out several transactions annually. Setting up an account through their online platform will cost you $50, but if you want to do a paper application, you will be charged $75. 

One main downside to Equity Trust is that it does not offer checkbook control. This may however only be an issue for you if you want to take charge of all investment processes, including the purchase of assets, and related paperwork. 

Pros

• No transaction fees
• Sufficient customer support
• Long-term experience 
• They also support traditional assets such as paper assets 

Cons

• No checkbook control 
• Annual admin fees are quite high

==> What Can I Invest in With a Self-directed IRA? What’s Legal?

---

2. IRA Financial

IRA Financial is a Miami-based SDIRA custodian firm that began its operations in 2010. It went on to expand its operations to all 50 states, where it serves over 28,000 customers and managed more than $4.6 billion worth of alternative asset investments. The company, which describes itself as the fastest-growing firm of its kind, does not also charge transaction fees. 

This company offers its services through partnering with 3rd party service providers e.g. Capital One, which offers banking services. Another example is Gemini, which offers cryptocurrency investment services. 

IRA Financial offers SDIRAs without checkbook control, but there’s also an option for individuals to open checkbook IRA LLCs. If you want to open an SDIRA with checkbook control, you will have to part with a $999 one-time establishment fee, followed by an annual $360 custodian fee. After that, you will not pay any transaction fees upon buying, selling, or exchanging investments. 

The asset classes allowed by this company include:

• Precious metals 
• Hard money loans
• Real estate 
• Cryptocurrency 
• Hedge funds
• Private equity funds
• Tax liens 
• Deeds 
• Private businesses

Pros

• Offers checkbook control option 
• Audit protection
• Annual custodian fees are lower than some competitors

Cons

• The account set-up process is lengthy

==> Can I Use A Self-Directed IRA To Invest In My Company Today?

---

3. uDirect

uDirect IRA is a California-based company that was established in 2009 to serve diverse clients. One of the key pillars of this company is its “learn and earn”  approach to winning over customers. Newbies in the industry can through uDirect’s webinars learn how to manage their self-directed IRAs. This company also offers plenty of tools and information needed to get even intermediary investors on a winning trajectory, without necessarily promoting any investments. 

This firm was founded by Kaaren Hall, whose experience in mortgage banking, real estate as well as property management enabled her to set up uDirect in a manner that has enabled it to gain popularity. 

One main benefit of this company is that it has lower fees in comparison to most of its competitors. Customers are expected to part with $50 for the set-up of their accounts, and an extra $50 annual account maintenance fee.  

Some of the asset classes supported by uDirect include: 

• Precious metals
• Equipment Leasing
• Factoring
• Accounts receivable
• Commercial real estate
• Underdeveloped land
• REITs 
• Real Estate Notes
• Limited Liability Companies
• C corporations
• Tax Liens
• Oil and gas
• Private stocks

Pros

• Offers checkbook control option
• Low annual admin fees
• Low set-up fees
• A lot of informational materials for investors to use to learn about SDIRAs

Cons

• Account setup process not streamlined

---

4. Entrust Group

The Entrust Group has been around since 1981, with its staff gaining sufficient experience to make it one of the most reputable firms in this industry. This company stands out in the manner in which it allows its customers to access its services directly or through financial advisors. The customers can in both cases access an online platform that enables them to effectively manage their investments as they also select more investment options from the list of assets provided for them. 

Entrust’s online platform also integrates with eMoney Advisor, which is quite a valuable addition amongst investors who are out to do holistic retirement planning. If you are, therefore, interested in managing your self-directed IRA through an online platform, then this is a company you can turn to. 

The fees charged by this company are within the normal range. If you are a new client, for instance, here is what you can expect to get charged: 

• Account set-up fee – $50
• Annual account administrative fees – these may vary based on the size of your account, but they range from $199 to $1995 annually. 
• Transaction fees – these may vary based on the number of purchases or sales made, or the nature of the exchange of assets, but may generally range between $0 and $250.

Setting up an account with this company is relatively easy, and can take less than 10 minutes in some cases. Entrust can help you with the account opening process, but you are required to maintain your SDIRA on your own. You can also consult your independent financial advisor on whether they can offer help with the opening of an account with Entrust. 

Pros

• Very experienced in offering SDIRA custodian services.
• Has an online portal with many reliable features.
• Clients can use tools offered to access their own investment options

Cons

• Fees charged may be high for some customers 
• Does not offer a Checkbook control SDIRA option. 

---

5. Alto IRA

This company is still a newcomer in this industry, after having only been formed in 2018. Alto IRA has a unique sales proposition to its customers, in the manner in which it claims to democratize SDIRA investing in alternative investments, in a bid to empower investors who are out to seek greater returns, as well as diversification in their self-directed IRAs. Whereas setting up and investing through SDIRAs can be complicated and expensive for some investors, Alto IRA seeks to ensure that investors have it easy. 

Investors, for instance, have access to a wide variety of alternative investments that are offered through Alto’s platform, as a result of partnerships with companies in industries such as: 

• Real estate lending 
• Crypto exchange 
• Angel investing, and many others. 

Clients can utilize Alto’s Checkbook IRA to acquire maximum control over their assets for better management, and potentially greater returns. Moreover, this company also supports other types of IRAs, including traditional IRAs, Roth IRAs, and SEP-IRAs, which a customer can open if they need to increase their number of tax-advantaged retirement plans. 

One of this company’s top objectives has been to make SDIRA investing affordable for the average investor, which it successfully does by offering two price tiers, which are:

• Pro – $25 per month 
• Starter – $10 per month 

You are also allowed to pay these fees annually, which in itself ensures that you save two months worth of fees. 

With the Pro Plan, an investor is allowed to come up with their own ideal portfolio of investments from different companies, while the Starter Plan limits investors to the investments that are offered by Alto’s partners. The good thing is that Alto has over 50 partners. 

Extra fees apply to the investments offered, in the following manner: 

• Investments through the Starter plan – $10 to $50 
• Investments through Pro plan – $75 

Opening an account with this company is quick and easy, and you can do so through their defined online application process. 

Pros

• An online platform that streamlines the investment process for investors 
• Quick and easy online set-up process. 
• Fees may be lower for most investors

Cons

• New to industry
• Complicated fee structure 
• Deal sponsors are needed for one to create an account

==>16 coins to have in a Cryptocurrency IRA 

---

6. Rocket Dollar

Established in 2018, Rocket Dollar is also one of the new entrants into this industry. It has, however, managed to build for itself a good reputation in the industry, to the extent that it now competes with some of the best firms. Clients can automatically set up a checkbook IRA with Rocket Dollar and gain exposure to the many investment opportunities available for them, which include: 

• Real estate ( Including crowdfunded real estate). 
• Precious metals 
• Cryptocurrencies 
• Private equity 
• Peer-to-peer loans 

Rocket Dollar’s fee structure can be quite attractive to investors who have larger portfolios since the total costs are not based on a sliding scale. This company charges a flat fee of $15 per month. 

The account set-up fee is $360, which is significantly higher than most of the other companies in this industry, but the good thing is that you only get to pay this fee once. If you are the type of client who prefers premium services, you can pay a $600 setup fee, followed by $30 per month, to access the Rocket Dollar Gold account. 

The account set-up process with this company is fast and easy, and there is no minimum deposit required during the account opening process. Customers can also contact the support staff through the dashboard on this company’s official website, at any time. 

Pros

• Quick and easy account setup
• Automatically sets up checkbook control for IRAs
• The fees structure is great for large portfolio holders

Cons

• Has not been around for many years 
• High account setup fees

==>How do I Open a Precious Metals IRA? | (How Much To Invest?)

---

Other Firms worth considering 

1. Pacific Premier Trust Company

Pacific Premier Trust was formerly known as PENSCO. It currently boasts one of the most extensive lineups of alternative assets in the entire industry, totaling nearly 42,000. It also claims to be one of the first firms of its kind to have offered its services through the internet, which it did since 1994. This San Francisco-based company was established in 1989 and has managed to refine its approach to service provision all through the years. 

It is currently a wholly-owned subsidiary of Pacific Premier Bank, which is equally popular (and currently worth over $20 billion). Beyond offering custodial services, this company also provides brokerage services for assets such as: 

• Stocks 
• Bonds 
• Mutual funds 
• Certificates of deposit 

Investors who turn to this company for SDIRA custodian services can hold assets in the following categories: 

• Precious metals 
• Land and mineral rights
• Peer-to-peer lending
• Wind farms
• Private equity 
• Real estate 
• Promissory Notes 
• Marketable securities 
• Tax liens

The one thing that can scare off the average investor from using Pacific Premier Trust’s services is the high fees charged. The annual fee is $750. The administrative fees are as illustrated below: 

• 0.30% charged on the first $1 million 
• 0.15% on the next $4 million 
• 0.10% on the excess of the amount that exceeds $5 million

Some of the other fees you will be expected to meet include: 

• Asset processing services – $175
• Asset registration fee – $75
• Account closure fee – $225

Pros

• A wide variety of alternative assets supported 
• Has been operational for many years
• Different types of IRAs supported

Cons

• High fees 

---

2. Strata Trust Company

Strata Trust Company is one of the widely-known alternative Self-directed IRA custodians. It supports a wide range of investment choices, the main ones on their list being: 

• Precious Metals 
• Crowdfunding
• Real Estate
• Private equity 

You can also invest in the above assets without necessarily relying on an SDIRA structure, though you may end up missing out on the tax-advantage element offered by the self-directed IRA. 

This company allows investors to open their self-directed IRAs in any of the following structures: 

• Traditional IRAs
• Roth IRAs
• SEP 
• SIMPLE 

This company charges a $50 setup fee for 3 different types of accounts, which are: 

• Precious metal IRA
• Basic IRA
• Flex IRA 

The annual account fees for these accounts differ, as shown below:

• Precious metal IRA – $75
• Basic IRA – $100
• Flex IRA – $250 

N.B. A basic IRA is an investment vehicle that enables investors to hold public investments such as brokerage accounts, CDs, REITs, and LLCs. With a flex IRA, investors can hold investments that are not considered public, such as private stock, real estate, precious metals, futures, commodities, and private notes. The precious metal IRA offered by Strata is strictly used for holding precious metals such as gold, silver, platinum, and palladium. 

Pros

• Low annual fees
• Solid management team 
• Has a robust resource center 

Cons

• Does not have a cryptocurrency offering 
• Does not have an individual 401(k) option.

More Interesting Reads:

How to Set Up a Self-Directed IRA? | Easier Than You Think!

Top-5 gold companies in the U.S.

How to protect your 401(k) in a market crash

Gold IRA Storage Fees | Comparison & Info on Top Companies

How to avoid gold IRA scams & gold scams in general

---

Frequently Asked Questions on “Self-directed IRA Custodians”

1. What are the main factors to consider when choosing the best self-directed IRA custodian?

To ensure that you end up with a reliable custodian, you need to scrutinize the efficiency of the companies you shortlist, based on a couple of factors, including:

• Their fees and charges 
• Minimum investment required 
• Availability of checkbook control option
• Ease of account set-up
• Quality of customer service
• Range of investment options
• Learning materials/educational resources offered

The company you settle on should tick most if not all the boxes based on the above factors. You can check out the customer reviews and trust ratings on sites such as Trustpilot,  Better Business Bureau, and Business Consumer Alliance. 

2. Is a self-directed IRA right for me?

This depends on a number of factors including the type of assets you intend to use for the purpose of investment for retirement, as well as the amount of money you intend to put aside in your retirement plan annually. I would mainly recommend opening a self-directed IRA as the best option if you intend to hold alternative assets such as precious metals and cryptocurrencies.

3. How much does a self-directed IRA cost?

Most Self-directed IRA custodians charge their fees in form of:

• Setup fees -most set-up fees range between $0 and $360
• Annual maintenance fees – range from $150 to $2000+ (may be more or less depending on the size of the investment account)
• Transaction fees – range from $35 to $250 per transaction. Some do not charge transaction fees at all.

4. How can I open a self-directed IRA? 

If you are convinced that a self-directed IRA is suitable for you, then you can open your account by simply visiting the official website of your preferred company, and filling out the account application forms. You can also contact their customer care staff to get the step-by-step instructions on how to open your account. 

---

Also Read:

==> See my #1 Recommended Gold & Silver IRA Solution

==> See Top-5 Recommended Cryptocurrency IRA Solutions

---

That will be all for this post on the best self-directed IRA custodians. I hope that you found this post helpful. If you have more questions regarding it, drop them in the comments section and I will get back to you ASAP. I wish you well, 

Eric, Investor and Team Member at Gold Retired!

Is physical gold better than gold stocks? Which of the two options can benefit you most as an investor who is trying to invest for retirement? If these are some of the questions that have been at the top of your mind, then you are in the right place, since I will take you through what you need to know to make a solid decision. Read on till the end of this post to find out more.

---

P.S.

See our Top-5 List of Gold & Silver IRA solutions

---

There is a significant distinction between buying actual gold and buying gold stocks. When you invest in gold, you’re usually investing in bullion, which means you’re buying the precious metal itself in the form of gold bars or coins. When you invest in gold stocks, on the other hand, you’re buying a stock like any other.

Gold stocks are generally linked to the price of physical gold, but they are also susceptible to other types of risk, as well as the stock market as a whole. So, which of these gold investment methods is better? That, of course, is dependent on your specific circumstances, such as your investment objectives and risk tolerance. Let’s look at the various ways you can invest in gold.

***Gold IRA Information | The Basics and Tips For Beginners

***How Can I Safely Invest in Gold? | Things You Need To Know!

---

Options for Investing in Gold Stocks

You can invest in gold stocks in a number of different ways (vs. physical gold). Your primary options are as follows:

• Gold certificates
• ETFs that are based on mining stocks

A gold mining stock is a share of a company that engages in gold mining. It’s a liquid investment that may be bought and sold on a stock exchange like any other stock.

1. ETFs that invest in gold

A gold exchange-traded fund (ETF) is a fund that, like any other ETF, trades on a stock exchange. On the other hand, a gold ETF invests in a number of gold mining firms. It, like other ETFs, provides immediate diversification by spreading your risk across numerous companies.

2. Gold certificates

Because the dollar is no longer backed by gold, this kind of gold investment isn’t as popular as it once was. A gold certificate, which isn’t strictly a stock, is an official document that proves you own gold that isn’t in your possession. On the other hand, your investment may become worthless if the certifying firm goes bankrupt.

The benefits and drawbacks of gold investments

Gold securities, like any other financial asset, offer both advantages and disadvantages.

Advantages of Gold Securities

Securities, in addition to some of the usual advantages of gold ownership, provide:

1. Liquidity

Gold securities are obviously easier to buy and sell than bullion because they trade on major exchanges. Aside from any administration or account fees your broker or fund manager may charge, there are no storage costs.

2. Returns that are compounded

While miner payouts are often modest at best, they are better than receiving no dividends at all, as you would with real gold. There’s also the risk that the stock price will rise.

3. The initial investment is minimal

Mutual funds and exchange-traded funds (ETFs) are the most cost-effective approach to investing in general.

***Gold and Silver Investment Strategies | Top Choices For 2022

Drawbacks of Gold Securities

1. Volatility

Operating expenses, reserves, and management all have a role in a miner’s performance, just as they do in any other business. As a result, stock prices are typically more volatile: When gold prices fall 10%, gold stocks often fall 15%.

2. Risks that are systemic

The stock performance of a gold mining business reflects the political and economic situations in its home nation. Africa, Russia, and Latin America are home to some of the largest operations, which have seen their fair share of volatility and are frequently avoided by socially responsible and institutional investors.

Also read: Gold in War | What is it good for? | Hedge against inflation

3. You are not the owner of the gold

Gold securities aren’t as pure a bet as they formerly were. They represent physical gold, but you don’t have the authority to exchange them for it. As a result, they don’t offer the same level of security as gold against a paper currency or financial market crash.

Check out the posts below as well:

***How do I Invest in Gold Stocks? Value Stocks To Consider!

***How to Invest in Farming & Agricultural Stocks | Helpful Info

***Agriculture Stocks Dividends | Viable Source of Income?

---

Investing in Physical Gold

Physical gold (as opposed to paper gold) can be purchased in two ways:

• Gold coins
• Gold Bars

Gold Bars

Gold bars are divided into two categories: cast gold bars and minted gold bars.

Minted gold bars are formed by pouring molten gold over a long strip of metals, then cut into bars. Cast gold bars are made in a mold, whereas minted gold bars are made by pouring molten gold onto a long strip of metals, which is then cut into bars.

Between the cast and minted gold bars, there is a slight texture and aesthetic variation. Cast gold bars are rougher and less perfect, whereas minted gold bars are shinier, smoother, and more perfect-looking — and more like you’d expect a gold bar to seem.

The minted bars’ attractive look, along with the fact that they are frequently stored in their original packaging, helps them keep their appeal and value over time.

Is it Worth Investing in Gold Bars? | Are Gold Coins Better?

Gold Coins

Investing in gold coins, rather than gold stocks, is another option to get actual gold. You’re probably thinking of the kind of coins you’d find in a pirate’s treasure in a fantasy movie. Gold coins, on the other hand, are quite genuine. Gold coins are produced in a number of mints around the world and are typically accepted as legal tender. This is due to the fact that gold coins frequently have a face value. The value of the real gold that makes up the coin, on the other hand, is frequently far more than the face value, rendering the face value largely unimportant.

Gold coins can have added value as collections in addition to their function as a store of money. This is especially true with gold coins struck before 1933 in the United States (which was the year gold coinage ceased its circulation in the U.S.)

***Best Gold Coin Dealers | Top-3 Options To Buy Or Sell To

Physical gold’s advantages and disadvantages

For many people, possessing gold is all about having physical possessions. The majority of the intrinsic investment benefits are found in the metal itself.

Physical gold’s benefits

1. Hedging against inflation

Gold, as a tangible asset, is said to have an intrinsic worth that always reflects the cost of living, according to proponents.

==> Gold Investment in Inflation | Is it a Necessary Addition?

2. Stocks have a counterweight

Gold, like other commodities, works as a counterfoil to equities, moving in the opposite direction of the stock market most of the time. Consider the following example: When the subprime mortgage crisis hit in 2008, ushering in the Great Recession, gold, which had been trading in the $400-600 range for years, rocketed to $1,000 per ounce and stayed there for the following three years.

3. A safe haven

In uncertain times or when there is socio-political unrest, gold is viewed as a safe haven. For example, after the 2016 Brexit vote, its price increased by more than 10% in a month. Owning gold appeals to those who are concerned about the collapse of global markets or other risks to a government’s capacity to back its currency. Physical gold cannot be hacked or erased. Gold is impervious to natural disasters and will not deteriorate over time.

Physical gold’s drawbacks

1. Storage costs a lot of money

Storing gold at home exposes you to significant theft and loss concerns. Keeping it in a commercial facility comes with storage expenses, which are frequently determined by the size and value of the assets (anywhere from 0.5% to 2%). If you’re not storing your gold at a professional facility, you’ll also need to insure it – another recurring cost.

2. Illiquid.

A click of a button or a phone call to a broker will not sell physical gold. Even with dealers acting on your behalf, a sale can take days or weeks to complete, not to mention the shipping arrangements.

==>Gold Retirement IRA Planning | Getting Started The Right Way

---

Frequently Asked Questions on “Physical Gold Vs. Gold Stocks?”

1. What is the most effective technique for a beginner to gain exposure to gold?

There is no such thing as a perfect method to possess gold: each option comes with its own set of trade-offs. However, for most people, buying stock in streaming and royalty firms is definitely the best plan. What to invest in, on the other hand, is only one part of the puzzle: There are a few more things to think about.

2. How much money should you put into gold?

Because gold is a volatile investment, you shouldn’t invest a substantial portion of your assets; it’s advisable to keep it under 10% of your whole stock portfolio. The actual advantage, for both new and seasoned investors, is the diversity that gold can provide. Once you’ve established your gold position, make sure to rebalance your portfolio on a regular basis to maintain the same level of relative exposure to gold.

3. When is the best time to buy gold?

It’s advisable to buy in little amounts and spread them out over time. When gold prices rise, so do the prices of gold-related stocks. This may result in low short-term returns, but it doesn’t negate the long-term benefits of keeping gold to diversify your portfolio. You can dollar-cost average into the position by buying a bit at a time.

4. Is it possible for me to invest in gold jewelry as well?

Individuals who own gold jewelry can also invest in gold. Because the cost of the jewelry often exceeds the value of the underlying gold, this is the least effective way to invest in gold.  Also, to pay the jewelry designer and jeweler, there is a significant markup.

---

Also Read:

==> See my #1 Recommended Gold & Silver IRA Solution

==> See Top-5 Recommended Cryptocurrency IRA Solutions

---

That will be all for today’s post in which we have looked at whether physical gold is better than gold stocks. I hope that you enjoyed it, and found it beneficial and that you now know what to do. If you still have more questions with regards to this post, drop them in the comments section and I will get back to you ASAP.

I wish you well,

Eric, Investor and Team Member at Gold Retired!