At some point after seeing consistently disappointing returns in a standard Wall Street IRA, an investor might decide that he/she wants to go to the alternative route. There are real estate deals to be made, and private business that can explode into the stratosphere. Anything is better than slowly bleeding to death with an under-performing mutual fund.
But, even with that decision made, an investor might still be hesitant moving forward. Most of that hesitancy comes from a lack of knowledge. The main question – How do I set up a Self Directed IRA? – is still unanswered.
The answer to this question has two parts:
From your perspective as an investor, the process is incredibly simple. There are essentially three basic steps:
Research and knowledge-building should always be your first step in any financial endeavor. This is especially true when your retirement funds are at stake. When you start researching providers for Self Directed IRAs, keep the following two factors in mind:
The self-directed retirement specialist you choose to work with will provide you with a few forms for you to fill out and return to the appropriate recipients. This will allow your custodian to set up the necessary accounts.
Once you get a capitalization check from your custodian, you take it to the bank of your choosing and open a checking account. You can start investing immediately by simply writing a check.
Of course, there’s much more going on behind the scenes. With an experienced Self Directed IRA provider like Broad Financial setting up your accounts, you don’t have to worry about the detailed paperwork and legalities, but many investors are curious. Here’s what the process looks like for us:
With your paperwork in hand, we set up a new Ultimate Self Directed IRA, as the registered custodian. We can start with either an initial contribution from the investor, or by rolling over funds from your existing retirement account(s).
We then facilitate a Limited Liability Corporation (LLC) for the Self Directed IRA. This LLC will act as the investment platform for the IRA. This is where professionalism and experience are crucial: We can make sure the LLC is organized in accordance with laws and regulations that govern Self Directed IRA investment platforms.
The Self Directed IRA is then invested in the new LLC. Capitalization is similar to the process of purchasing stock: the Self Directed IRA essentially buys all the shares of the new LLC, and becomes its sole owner. The check from that sale is then sent to you, the investor, to use in opening a checking account at the bank of your choice.
So you see, the process of setting up a Self Directed IRA is actually very simple, especially for the investor working with a highly-rated, experienced self-directed retirement platform provider.
Our specialists make the process as smooth and worry-free as possible. Broad Financial enjoys an A rating from the Better Business Bureau for its industry leading customer support. When you make that first phone call, your dedicated specialist will hold your hand every step of the way. The process will be easy, effortless, and put you in the mindset you need to start maximizing your retirement investing.
Schedule a call, and one of our IRA Specialists will answer any questions you may have.SCHEDULE A CALL
One Paragon Drive
Montvale, NJ 07645
Phone: (800) 395-5200