Self Directed IRA's

[Anthony Standard]

Hello everyone,

I'm looking for a reputable company  to do a self directed IRA in the northern NJ area. Can anyone please offer me some sound direction?

Thank you

Anthony

[Brian Eastman]

@Anthony Standard

Geography is one of the least important criteria when evaluating providers of self-directed retirement plan services.  This is a very specialty field served by a handful of firms from various parts of the country.

Finding a provider with the right business model for your needs, and one with the expertise to help you succeed is much more important than where a firm is located.

There are two business models, served by different kinds of companies.

Self Directed IRA Custodians are financial institutions that provide processing services to document investments into non-traditional assets such as real estate, mortgages, etc. While your investment choices are expanded, the service model can be limiting for certain types of investing. The reason is that the custodian holds the funds, signs every contract, writes all checks for expenses and receives all deposits for the benefit of your IRA. This works OK for static investments and when quick turnaround is not that important.

Other firms provide IRA and 401k plans offering checkbook control. In these plans, a legal entity is formed under the umbrella of the retirement plan that puts you in direct control of the funds and allows you to directly manage all aspects of plan transactions. For more complex and time-sensitive portfolios, this can be a superior option.

There is a lot of good info here on BP and may providers participate actively in the forums.  I'm sure you will also get some specific recommendations from clients of various firms.  My recommendation is to call a few providers of each service.  You'll quickly get an idea of what will suit your needs, and who provides quality services as opposed to just marketing plans.