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By: Jennifer Bzik
By: Jaime Raskulinecz and Jennifer N. Bzik
Chances are that you are reading this publication because you want more information on Self Directed Retirement Plans. That’s great! Retirement Plan Self Direction has some wonderful benefits, including diversification of your retirement funds, greater personal control, and many others.
If you currently have, or are thinking of opening a Self Directed IRA, consider this: Are you an Informed Self Directed IRA Holder? If you said yes, chances are there’s actually a lot more you could learn to make sure that your interactions with your administrator go smoothly. If you said no, read on for some great tips.
TAKE NOTES. Yes, like in school. This is the most important advice for anyone considering a Self Directed IRA. You probably have lots of questions, and you will get lots of information when you speak with an administrator. Try to jot down your questions before you call your administrator so that you can be sure to ask all of them in one phone call. Leave space to put in notes on the answers that you get. Write things down even if you think you will remember what the answer was. You don’t want to have to waste time and energy calling back to get the same information again.
Do you know who to contact at your local Entrust office to get the answers to the questions that you have? When you call, be sure to get the name of the person that you speak with, and find out if he or she is the best person to answer the type of questions that you have. If not, ask who is.
If you are planning to open an account, make sure to read the application carefully. Fill in all the information as completely and accurately as possible. Also, make sure to that the most commonly forgotten items in an application packet are a copy of a valid photo ID and a check for the account setup fee. If you’re not sure if you have everything, call your local Entrust office. It saves time in the long run if you find out that something is missing before you mail in your application.
Try to understand and be familiar with the time frame that it will take to complete each type of request, so that you can plan your transactions accordingly. For example, it usually only takes about two business days to have your account number assigned after you send in your complete application packet. But if you are transferring an account from another custodian, it usually takes 3-4 weeks to receive the funds. Whether you are requesting a transfer or doing a transaction, try to start the ball rolling as early as possible, so that you avoid having to rush things later on.
Ok, so you’ve got your account set up and you want to do a transaction. Now what? You can always start by looking at the website of your local Entrust office. There you can find Buy Direction Letters and lists of documents required prior to funding a transaction. If you are not sure which type of Buy Direction Letter to use, call your local Entrust office. The website also has information on what types of transactions are allowed, prohibited transactions, and disqualified persons. Make sure you are familiar with these.
When you call an Entrust office to get information on how to do a transaction, be sure to explain exactly how you want the transaction to be done so that you get accurate information. For example, we have had clients call and say that they want to purchase real estate. So we go through the instructions for funding a real estate purchase. Then somewhere towards the end of the conversation they say something about an LLC. It turns out they actually want to invest in an LLC which will then be purchasing the real estate. This is a totally different type of transaction, so we have to go back to the beginning and explain things all over. This can make the transaction seem more confusing, because they have now heard two sets of instructions, when they really only needed one.
By remembering these tips when dealing with your Self Directed IRA administrator, you will make it easier for your requests to be honored quickly and correctly.
Jennifer N. Bzik is the Account Manager at Entrust Northeast, LLC. Jennifer has a bachelor’s degree in Business Administration from Rider University, and has been using her educational background in finance to assist Entrust clients for the past year. She can be reached at 973-857-8058 to discuss any questions regarding opening accounts or doing transactions.
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