Let’s face it, when it comes to selecting a self-directed IRA company to put your nest egg to work, there aren’t a lot of options out there. The limited options and scant knowledge around using a self-directed IRA to invest may be one reason for the lack of available information.
Many people don’t even realize that they may be sitting on a gold mine of untapped potential when it comes to investing their retirement into things like real estate or other highly-sought-after but otherwise out-of-reach “illiquid investments”. Furthermore, you could spend all day searching and chasing links to financial advertisers who buy the keywords for “self-directed IRA” and then don’t even offer an account to act as a custodian on. But why do that when you can quickly skim this article and have the tools right at your fingertips to control your own investment destiny.
It is important to select a reputable self-directed IRA company when first getting started. Why is it important? Well that really is a story for another day, and I will probably write an article one day about my horrid experience which resulted in me getting annual updates like clockwork from the Department of Justice’s Victim Notification System. But for now, I want to leave you with the below list which is by no means exhaustive or an endorsement but simply a guide.
So without any further adieu, here are some select self-directed IRA companies to consider opening an account with in 2023:
Top 5 self-directed IRA companies
1. Equity Trust
2. The Entrust Group
3. Madison Trust
4. Broad Financial
5. Directed Trust Company
Equity Trust as a tried and true solution
Ok, admittedly I only have personal investing experience with one of these companies on the list. However, after spending countless hours researching, reading reviews, digging and diving deep on fine print I came up with the names on this list. That is not to say there aren’t other great options, but if there are they just aren’t yet on my radar. Maybe if I decide to update my list for 2024 I’ll be able to expand it to a top 10 selection, but for now you’ll have to make due with five.
When it comes to self-directed IRAs, Equity Trust is at the top of my list. I was first introduced to Equity Trust in 2015. Equity Trust has some really great features such as free alternative asset buy/sell transactions, free bill pay services, an all-inclusive fee schedule, access to alternative investment opportunities and an online investment wizard. They have an easy 3 step process to establishing an account and getting started. If it is your first time investing with a self-directed IRA make sure you read up on all of the rules before getting started, including getting smart on the “arm’s length” and “self-dealing” regulations that could otherwise put your account in jeopardy.
The Entrust Group as a resource for getting started
The Entrust Group is an innovative self-directed IRA provider that offers a variety of services. With Entrust Group you can make investments into alternative asset classes such as real estate, private placements, precious metals, and more. Like most of the others, they offer a secure platform for self-directed IRA clients to manage their accounts and make investments with the help of experienced professionals to guide them. As you may already know, self-directed IRAs offer the potential for increased returns and tax advantages, making them an attractive option for many of you investors.
Madison Trust and self-directed vs. Roth
Madison Trust is another self-directed IRA provider that allows you to invest in a variety of assets, not just real estate, stocks and bonds, but believe-it-or-not you can also invest in tax liens and private placements. A Madison Trust Self-Directed IRA is a good alternative to a Roth IRA for those who want to invest in alternative assets, as a Roth IRA does not allow investments in alternative assets. Madison Trust has higher contribution limits than Roth IRAs and offers the convenience of having one account to manage all of your investments, while Roth IRAs require separate accounts for each asset.
Advantages of a Broad Financial Self-Direct IRA
Broad Financial offers the ability to invest in traditional liquid investments but also supports investments in other areas such as crypto currencies, private equity, start-ups and even promissory notes.
Try a directed IRA with Directed Trust Company
Directed Trust Company’s “Directed IRA” program has a slew of account type offerings and bundles of resources and videos for learning how to invest in self-directed accounts. They have an entire section dedicated to crypto investing (if that is your thing) and seemingly limitless content including podcasts, articles and free quick start guides. They also have an informative newsletter of which I highly recommend you to subscribe.
Recap of the Best Self-directed IRA companies
In short, the best Top 5 self-directed IRA companies include, Equity Trust, The Entrust Group, Madison Trust, Broad Financial, and Directed Trust Company. Let us know in the comments if you have any questions on self-directed IRAs and check out our other investing articles.