If you’re looking for a way to deploy your retirement savings but aren’t satisfied with the typical offerings of a regular IRA, you may benefit from a self-directed IRA.
Self-directed IRAs are similar to regular IRAs but afford you the benefit of investing in various asset classes. Though a self-directed IRA is managed directly by you, to open one still requires an administrator.
Many administration companies 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. They function very similar to regular IRAs and 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 a regular IRA. With a self-directed IRA, you can have precious metals, real estate, cryptocurrency, and more.
Though the account holder ultimately manages a self-directed IRA (the IRS prohibits companies 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 company.
What is The Entrust Group?
The Entrust Group is a self-directed IRA administrator that offers services to help you set up and originate your account.
The Entrust Group has been helping clients take advantage of SDIRAs for over 40 years and currently has over $4 billion of assets under management. Entrust can help you make purchases of alternative asset classes and even administer the buying and selling process, 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.)
- Commodities
- Private placements
- Tax lien certificates
- Real estate
- Cryptocurrency
- Limited partnerships
- Private lending
- Startups
- 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 – With certain asset classes, you must pay all associated expenses with your self-directed IRA. If you don’t, you could be liable for penalty payments. Entrust makes this process more manageable with the myDirection Visa Card, providing you with immediate access to your funds so that you can pay certain expenses on the go.
- Financial Planning Software – Entrust offers investors a comprehensive financial planning software called “eMoney” that allows you to easily create net worth statements, stock options reports, and asset allocation reports.
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.
Pros:
- 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 – Entrust is one of the only administrator companies on the market that offers educational services (as well as its cutting-edge financial planning software, eMoney).
- Large selection of investments – 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 spend time pondering how much money you are losing on your investments to fees.
Cons:
- Lacks foreign investment – One of the only disadvantages to Entrust is that it doesn’t allow you to partake in foreign assets with your self-directed IRA.
- 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 all of your assets.
What are the differences between custodians?
Different companies that offer custodian services for self-directed IRAs specialize in various areas. For example, some may have particular expertise in real estate while 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 in two main ways. Firstly, it charges fees based on the number of assets in your account. These fees are calculated annually and paid every quarter. You can also opt to make your payments on a percentage basis of your total assets under management. This fee structure has a capped amount equal to the maximum fees allowed for an IRA.
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 up a self-directed IRA, you’ll need to contact a custodian and administrator to handle your funds for you. 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 domestic assets with ease.
The Entrust Group
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Jeff is a current Harvard student and author of the blog Financial Pupil (https://financialpupil.com/) 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.
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