How do I Vet Self-Directed IRA Custodians for Legitimacy?
I'm having a bit of trouble. See, we at BiggerPockets put together a list of Self-Directed IRA Custodians and some resources on the topic here:
http://www.biggerpockets.com/rei/self-directed-ira-real-estate/
But that is just a list of companies. How can I as a potential client know that these companies are legitimate? I'd expect firms to post social proof, testimonials, third party validation (like a Better Business Bureau Accreditation) or SOMETHING that would let me know that they are legitimate. But I am finding it extremely difficult to vet them on an individual basis for legitimacy and scale!
I'd like to collect some resources on this topic, and write up a guide on how to vet Self-Directed IRA custodians. I'll publish this guide on our blog and in the resource linked above. I will be sure to quote any excellent contributions!
It would just be great for folks to feel comfortably secure with a company before putting their retirement savings from their 401(k), Roth IRA, or other retirement accounts in the hands of someone else.
The reason this is applicable to real estate investors is that there are a number of different ways that retirement funds from a 401k can be deployed in real estate, but doing so requires diligent paperwork, a complex set of rules, and keeping the IRS up to date on all of your activities. These Self-Directed IRA providers help manage all of that, so it's important to have the ability to pick a good one.
