If you're looking for a way to deploy your retirement savings but aren't satisfied with the offerings of a regular IRA from a bank or brokerage, you may benefit from a self-directed IRA.
A Self-Directed IRA (SDIRA) is simply an IRA. What differentiates it are access and control, and with an SDIRA, both are unlimited. Rather than having the option to invest in stocks, bonds, and mutual funds alone, you can diversify your retirement portfolio with alternative investments, like real estate.
. Although you have total control over your account and what you invest in, the IRS does require an administrator to process the paperwork to keep your account in good standing.
Many administrators are on the market today, and it can be hard to distinguish which ones are legitimate. That's where The Entrust Group comes in. The Entrust Group provides account administration and recordkeeping services so that you can open and run your self-directed IRA with ease. This post will review this popular self-directed IRA administrator.
What Are Self-Directed IRAs?
Before revealing specifics about The Entrust Group, it's essential to understand what self-directed IRAs are.
A self-directed IRA is an individual retirement account that allows the holder to invest and grow their retirement savings with alternative assets. They function the same as regular IRAs in the eyes of the IRS and only differ in the variety of assets you can hold in the account.
You can typically hold just stocks, bonds, mutual funds, and other conventional assets in an IRA. With a self-directed IRA, you can have precious metals, real estate, cryptocurrency, private equity, etc.
Though the account holder ultimately manages a self-directed IRA (the IRS prohibits SDIRA providers from giving financial advice), a custodian, trustee, or administrator still needs to be employed to administer the account. The Entrust Group is one such administrator.
What is The Entrust Group?
The Entrust Group is a self-directed IRA administrator and recordkeeper that offers services to help you set up and manage your account.
The Entrust Group has been helping clients take advantage of SDIRAs for over 40 years and currently has over $4 billion in assets under administration. Entrust can help you purchase alternative investments and record keep these assets, something not offered at typical banks and brokerage firms.
Entrust is known in the industry for its dedication to client success and, as of today, allows you to hold any investment type permitted by the IRS in your account.
Available asset classes include:
- Precious metals (gold, silver, platinum, etc.)
- Private placements
- Tax lien certificates
- Real estate
- Limited partnerships
- Private lending
- Private equity
- Renewable energy
Features of The Entrust Group
Some notable features of Entrust to keep in mind are:
- Account Management – You can manage your Entrust account online 24/7 using the Entrust client portal (voted “best online portal” by Investopedia) and the mobile app.
- Learning Center – Though custodians and administrators cannot give investment advice or perform due diligence for self-directed IRA holders, Entrust offers a comprehensive library of content to help you learn about alternative asset investing.
- myDirection Visa Card – When investing in real estate, you must pay all associated expenses with your self-directed IRA. Entrust makes this process more manageable with the myDirection Visa Card, providing you with immediate access to your funds to pay related expenses anywhere Visa is accepted.
Pros and Cons of Entrust
Before making any financial decision, it's essential to evaluate all the advantages and disadvantages. Here are some of the most significant pros and cons of investing with Entrust.
- Established – With over 40 years of experience under its belt, Entrust is an established company that takes extra measures to prevent fraud and best manage your money.
- Education – Every month, thousands of investors visit Entrust's learning center to get unbiased educational content on all things SDIRA. This includes articles, guides, webinars, and more.
- Investment freedom – With Entrust, you can invest in anything the IRS permits.
- Straightforward fees – One main investor concern when setting up a self-directed IRA is complex fees. With Entrust, the costs are laid out transparently on their website. You don't need to ponder how much money you are losing on your investments to fees.
- Checkbook writing access – Unlike some other SDIRA administrators, Entrust does not offer checkbook writing services.
More on The Entrust Group
Here are some commonly asked questions regarding Entrust and SDIRAs answered.
What is the difference between a custodian and an administrator?
An administrator processes the paperwork necessary to open and maintain self-directed IRAs. These tasks primarily include handling paperwork from the IRS and submitting the proper forms on time. Typically, an administrator will work with a custodian to set up your self-directed IRA. The Entrust Group (administrator) works in tangent with The Entrust Trust Company (custodian) to custody of all of your assets. The Entrust Trust Company and The Entrust Group have the same owner.
What are the differences between custodians?
Different companies that offer custodial services for self-directed IRAs specialize in various areas. For example, some may have particular expertise in real estate, while some are highly experienced in dealing with private stock. Entrust is known for allowing you to invest in any asset permitted by the IRS.
How does Entrust get paid?
The Entrust Group makes money by charging annual recordkeeping fees to cover the work done to keep accounts compliant with the IRS. These fees are based on the number of assets a client holds and the value of the asset(s). There are also one-time fees for some transactions, which are common with most providers.
Recap: The Entrust Group Review
If you are looking for a way to diversify your retirement funds and consider options outside regular stocks, bonds, and mutual funds, a self-directed IRA could be a good option.
To open a self-directed IRA, you'll need to contact a custodian and administrator to handle your funds. The Entrust Group is one company that offers such services.
Entrust is a good choice for investors looking for an established company with straightforward fees that will allow you to purchase alternative assets easily.
For more information about how self-directed IRAs work and what they can do for you, download your copy of Entrust's SDIRA Basics Guide.
Jeff is a current Harvard student and author of the blog Financial Pupil who is passionate about learning, living, and sharing all things personal finance-related. He has experience working in the financial industry and enjoys the pursuit of financial freedom. Outside of blogging, he loves to cook, read, and golf in his spare time.