Self Directed IRA Advisors

A good self-directed IRA advisor is just that, an advisor. His job is to help you manage your investment strategy for maximum gain. Most custodians are not advisors and it is a conflict of interest for the custodian to provide advice. Self-directed IRA facilitators are also sometimes mistaken as advisors. Although they may offer the drafting of IRA LLCs, they don't offer the advisory role that a Self-Directed IRA Advisor does. A facilitator does just what his name implies--facilitates the process. Most custodians offer a narrow range of investment options and, beyond that range, their job is to tell you what you cannot do.. A good advisor tells you what is possible, rather than what is forbidden, and can help you get started.

A good advisor also, and again in contrast to traditional custodians, will not fee you to death every time you want to do something with the assets in your IRA. Between set-up fees, transaction fees, management fees, and annual fees, your IRA can have a hard time accomplishing it's growth potential. With a self-directed IRA (set up with an LLC) and the right advisor, you can realize significant growth without all of the fees.

Companies like NAFEP (who specialize in non-traditional IRA structuring and advising) charge minimal fees (often no more than a one-time set-up fee) and give their clients complete control over the direction and implementation of their own investment strategies. This varies substantially from the traditional IRA custodian relationship. The money you save in fees can then go back into further investments and help your IRA build wealth.

Choosing the Right Self-Directed IRA Advisor
Seasoned investors often need very little help directing their investments. They do, however, need someone to help them set up a self-directed IRA (and usually an LLC to gain checkbook control). Whether you are a seasoned investor or you are just starting out with a 30 thousand dollar nest egg, you need to find an advisor who will show you how to give your IRA the opportunity it needs to grow, while staying within the limits of the law. Ask about fees. Ask about getting answers to your investment questions. The right advisor will understand where you want to go, will help you get there, and will not charge you an arm and a leg to do so.

Written By Scott Janko, The National Association of Financial and Estate Planning (NAFEP)

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