What Does “Self-Directed” Mean?

Self-directed means that you decide what to invest in and when to buy and sell. You can go with your instincts or study the data and make the choice that seems most logical to you. Either way, you call the shots.

However, starting an IRA alone, without the help of excellent technology and professional insight could be a daunting task. And, if you’re investing in precious metals, you might not have a secure place to store them.

With Self-Directed IRAs, You Have More Options

An ordinary traditional or Roth IRA typically contains assets like Treasury Notes, U.S. Savings Bonds, and higher-risk investments like ETFs, stocks and mutual funds. Along with stocks, bonds, and ETFs, a self-directed IRA offers other options. In this type of IRA, you can invest in:

• Precious metals
• Real estate or mortgages
• Private equity
• Private debt
• Cryptocurrency
• Foreign currency

While you can certainly take the traditional route, even with a self-directed IRA, you can also invest in whatever option interests you most. You can choose assets that fit with your risk tolerance and meet your personal preferences.

Who Are SDIRA Custodians?

Your self-directed IRA custodian is typically at a banking establishment or a trust company. Custodians are regulated by the state and federal government. The IRS must approve the custodian, and authorize the custodian to hold your assets. While there are some custodians who are not banks or trust companies, they must all meet the requirements to be approved by the government.

What Does the Custodian Do?

Custodians take care of your assets. They do administrative tasks for you and ensure your assets are held securely for you after you purchase them.. For example, if you invest in bullion, they will make sure it is stored in a secure location. They are responsible for keeping the assets you put in your IRA safe. 

Yet, your custodian does much more. They support you by providing a platform where you can make transactions. In addition, they’re there if you need help setting up an account or making a sale or purchase. They help you create a portfolio that’s personalized to you. 

Along the way, they should let you know if you try to make a transaction that is not allowed in an SDIRA.

What Does the Custodian NOT Do?

The custodian is not responsible for the decisions you make about what to invest in or when to buy and sell. After all, it’s self-directed, so those decisions (and their consequences) are all yours. They don’t give tax advice, so you will still need to discuss your tax situation with a tax professional.

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While starting a self-directed IRA gives you many more investment options, it also gives you more responsibility over your own investments.But if you’re investing in a SDIRA, that might be exactly what you want.

Important Factors in Choosing Your Custodian

If you have decided to open a self-directed IRA, you will need to choose a custodian for it. What qualities should you look for in a custodian? Ask yourself these questions.

• Can I trust them?

• Do they have a user-friendly platform?

• What is their customer service like? 

• Do they have expert advisors to help you?

• Do they specialize in the type of investments I want to make?

Before you choose a custodian, talk with them to get a feel for how they operate. Pay attention to how they respond to you, how knowledgeable they seem, and whether they have the services you’re looking for in a custodian.

Are You Looking for a Generalist or a Specialist?

Some people would prefer to have many different types of investments in one self-directed IRA. Others prefer to focus on one type of assets, such as real estate notes or precious metals. If you want a generalist, look for a custodian who offers you the option of investing in many types of assets. 

Some of these generalists  include:

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‍Equity Trust Company are the trusted custodian of more that 334,000+ accounts holding over $45 billion in retirement assets. They are Investopedia's "Best Overall Self-Directed IRA Company" 2020-2024 and U.S News 7 Best IRAs for 2022.

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‍Provident Trust operates as a self-directed custodian for 30,000+ clients and have over $12 billion in assets. They have a parent company called Ascensus who administer over 1 million retirement accounts and $290 billion under administration.

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‍STRATA Trust Company was founded in 2008 and is a subsidiary of Horizon Bank. They have helped thousands of clients with the custody of alternative investments in self-directed retirement accounts.

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Companies that offer many investment options can help you keep your portfolio diversified and allow you more freedom of choice. We work with these trust groups to help you start and maintain your gold IRA. You simply choose your custodian, let them know that we are your precious metals dealer, and they will take it from there.

However, if you want your SDIRA to focus on one type of asset, you might want to choose a specialist or a company that has extensive experience in that type of asset. For instance, Kingdom Trust started offering custodian services for bitcoin investments before anyone else did. 

How Does the Custodian Work with Precious Metals Companies?

Once you find the right custodian, you need to get the assets you’re going to invest in into their hands. In the case of physical precious metals, those assets need to be stored somewhere, like with a custodian.

Your custodian can arrange for the precious metals to be transferred from the precious metals provider and into your self-directed IRA. If you choose to make any changes along the way, you can do that through the gold company and the custodian.

True Gold Republic works with individuals and businesses seeking to invest in a precious metals IRA. Our company focuses on customer education.If you’re looking to start a SDIRA, we can help you find out which precious metals products are eligible to go into one. We supply not only the gold and silver products but also professional insight into gold investing.

With extensive experience in the precious metals market, precious metals IRAs, and serving diverse clients, you can trust True Gold Republic to provide outstanding products and services as you build your portfolio and increase your wealth!