Posted on 04/25/2017 7:36:12 AM PDT by Alberta's Child
Sorry for the vanity, but I'm dealing with a financial situation that is apparently a very unusual one and isn't easily addressed through traditional means.
Long story short ...
I'm looking into some options for opening a self-directed IRA (which is different from a self-managed IRA). The tax rules about these accounts are complicated, but I've determined that I can navigate them with minimal outside help.
The issue I'm facing is that the IRS requires a third-party custodian to be involved in the process to file the necessary paperwork and annual tax forms. For the life of me, I cannot find a single financial services firm among the ones I've used over the years who has ever done this sort of thing. Every financial advisor I've contacted would love to sign me up for a traditional IRA, but nobody has been willing or able to help with a self-directed IRA.
I have found several resources online with links to various companies that do this sort of thing, but I don't recognize any of them and I'm reluctant to engage someone I don't know without any recommendations from people I know in the industry.
Has anyone here ever opened a self-directed IRA? Who did you use as a third-party custodian?
Please Freep-mail me if you think you can help but need more detailed information, or if you want to share anything that you don't want to post here in public.
Thank you!
ping for latter
We have been with TDAmeritrade for a long time. They have an educational affiliate named Investtools. You can get educational credits when you contribute or roll-over into your TDAmeritrade account. The training is very good, and you get an on-line community with whom you can discuss trading plans.
I would suggest speaking with this guy:
He spoke at a real estate group I’m a member of here in SC earlier this month and the guy is incredibly brilliant. He’s a very outspoken conservative too.
I’m no expert on the subject at hand, but I’m not impressed with the knowledge of most ‘experts’ these days and this guy knocked my socks off.
I’ve NEVER heard of any old brokerage who can open what I believe you are referring to which is a a SEP-IRA account in which you can buy stocks or bonds and sell covered calls and buy long options (puts or calls) but cannot go short. That happens to be a small limitation because there now so many etfs which you can buy (go long) but which act market-short.
I have one with Etrade. Before that I had one with Scottrade. ANY brokerage can do this. Super ultra discount brokerages like IB or Lightspeed may not WANT to open such an account but any old kind of Schwab etc; does this every day.
It is the brokerage whom is the custodian. You are the director. “Self-directed”.
Sorry, should read:
I’ve NEVER heard of any old brokerage who **CAN’T** open
Absolutely bread and butter deal for them.
I was using IRA Services Trust Co out of San Carlos Ca.
The purpose of a self-directed IRA is to allow the account holder to invest in non-traditional things like real estate, physical gold, etc. I've learned that none of the big brokerage firms want to have anything to do with those things. They really just want you to invest in securities like stocks, bonds, mutual funds, etc.
Lowest fees - good service. There are other trust cos. out there but bang for the buck - I now put my clients with GST.
See Post #8. I’m finding that “any old brokerage” has no interest in non-traditional investments.
Two types of self directed IRAs. If you mean the first type A, Fidelity Investments is an option. If the second, B, look elsewhere:
A: The term self directed [IRAs] is usually used to refer to one without a financial adviser.
So a fidelity self directed IRA would be one where the individual chooses their stocks or mutual funds.
B: However Self directed IRAs in general usually refer to IRAs that can invest in alternative assets (Products/Investments that you can’t buy on Wall street.) such as real estate or private loans etc.
Obviously, Fidelity doesn’t fit the second definition.
https://www.quora.com/What-is-a-Fidelity-self-directed-IRA
Exactly. I’m looking for Option B here.
I may reach out to you later via Freep-mail.
I have my self-directed IRAs (one for traditional IRA funds & one for Roth IRA funds) with Scottrade. It’s easy & VERY inexpensive. I’m sure most similar firms would offer this service/account also.
Perhaps you are being confused by the term “custodian”.
All it means is “you can’t touch the contents”. You can TRADE the contents. The entire concept is very simply “the only thing going in or out is cash”. That’s all there is to it.
For example (and I know there are radio spots announcing the idea that “you can have gold in an IRA and store it at home” and I completely disbelieve them) some people would like to have gold in an IRA. You can. What you CAN NOT do is to send them your gold bars or Eagles. What you can NOT do it to ask them to send you your bars or Eagles. You have to send in cash money, have them buy gold in whatever (acceptable) form you select (not all forms are acceptable) and store them in an acceptable vault, aka Brinks or equivalent. Want to withdraw? No, they can not send you your Eagles/bars. They can sell them and send you the proceeds. ONLY CASH MONEY can go in or out.
The above is only one reason why I think gold in an IRA is completely stupid. And having it at home, in your possession, is even dumber.
Right — thanks. See Post #11.
Aha. Define “non traditional investment(s)” with an example or two, please.
Are you self employed?
I just sent a private message to you on this while you were adding your post. LOL.
Yes.
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