Many people who are interested in expanding their work into the world of property management consider using a self-directed IRA (individual retirement account) to hold the property as an investment property. Becoming a landlord in this way is a bit different than becoming a landlord more directly, so it can be a complicated process to understand.
Managing a property owned by a self-directed IRA has specific rules, and there are specific guidelines that must be followed to actually complete the property purchase.
The best way to ensure you do not make any mistakes while following this process is to hire a qualified company as the custodian of the IRA, and the New Direction Trust Company is one option that can assist in expanding the range of your investments with income-generating properties.
Today, we’ll be looking into New Direction IRA reviews and New Direction IRA fees to find out if the offerings by this trust company make sense for interested parties like you. Through these reviews, find out if using this type of trust-backed system will make it easier for you to continue growing your investments.
A Table Of Contents For New Direction IRA Reviews
- New Direction Trust Company Rating
- New Direction IRA Reviews
- New Direction Trust Company Product Analysis
- New Direction Trust Product Fees
Today, we’re giving the New Direction Trust Company a ⅘ star rating for the services they offer for IRAs and other types of trust products.
The New Direction Trust Company earns a ⅘ star rating because they provide a wide variety of investment and savings options at sliding fee rates, but there are some areas where they could provide a bit more support in order to be the most practical option for certain types of investors.
For example, they do a lot of great work with self-directed IRAs that are focused on real estate, precious metals, and other assets. However, there is a sliding fee scale once the value of the assets grows to over $100,000, so this can make it not the most practical choice depending on your investment size and type.
- Variety of investment types
- More than a decade of experience with self-directed IRAs
- Useful tools for real estate-focused investments
- Specialized portals for specific investment types
- Don’t provide storage for precious metal assets, but this will not affect real estate investments
We’re going to focus on covering their self-directed IRA services in the real estate sector through this review section, but we will mention their other services such as precious metal acquisition in the Product Line section below.
Types Of Accounts
New Direction Trust Company offers many types of IRA accounts:
- Traditional IRA
- Roth IRA
- Inherited IRA
- SIMPLE IRA
- SEP IRA
Additionally, they offer a few other types of accounts to be set up through their trust services:
- Health Savings Account (HSA)
- Solo 401(k)
- Coverdell Education Savings Account (ESA)
Any eligible party who wants to set up one of these types of retirement accounts can do so with New Direction Trust Company as the account custodian, and information about each type of account can be found in great detail with advice on their website.
Self-Directed IRA Real Estate Investing
The primary product investment landlords might want to consider from New Direction is their self-directed IRA support. If you still aren’t sure if SDIRA investing makes sense for you, check out this video that covers some of the major pros and cons of this investment type:
New Direction Trust Company has a lot of experience helping to set up real estate investments through a self-directed IRA account, and they can provide the needed guidance for those with and without experience in this type of investing.
From residential to commercial to raw land, there are a number of ways that IRAs can be used to direct investments and holdings into different sectors of the real estate market. New Direction Trust has working experts who are familiar with IRS rules for all types of transactions and holdings, so you can get the guidance you need when using their custodial services.
Comprehensive Online Portal
New Direction Trust has an online portal known as myDirection, which gives you 24/7 access to account information as well as control over the investment of your assets in many ways. While it is required by law for a third-party entity to hold your investments, they are still your investments!
The complete portal offered by New Direction helps you stay connected and in control of your investments as well as gives you direct access to advice, tips, and FAQ information that you might be in search of when managing your overall portfolio.
Other Investment Options
In addition to being able to help you with your real estate-focused investment needs, there are other ways New Direction Trust can use their experience to help you put your investment plans into action.
In particular, New Direction Trust has experience with:
- Real estate
- Precious metals
- Private lending
- Private equity
- Checkbook IRA
- Other investments
Once your account is approved by New Direction, set up on their portal, and funded by investment accounts, you can set up a wide variety of investment opportunities with their custodial services. If you have specific types of investments you would like to make, consider contacting them to find out how they could assist in making your plans a reality.
The New Direction IRA fees for each type of service they offer are going to be different depending on whether you are investing in precious metals or not. The fees for precious metals through New Direction Trust are on a sliding scale that increases once you cross a certain threshold, and there are some basic, one-time fees as well.
Here are some of the general fees that will apply to all accounts and assets:
- Online account opening fee: $30
- Paper/electronically signed account opening fee: $75
- Annual admin fees: Between $100 and $1,000 depending on account type and holding amount
- Value based-admin fees: Between $200 and $2,000 per asset depending on asset value
- Real estate purchase processing fee: $250
As with most online services, there are a number of fees that will apply when you make purchases, process paperwork, get experts involved, and more.
The best way to determine if this service makes sense for your investment budget is to calculate based on their sample fee schedule what fees you would expect to pay on your planned SDIRA investments. Does that number make sense for your investments? If so, New Direction remains a good option for your future development.
If you’re excited to learn more about how rental investments can be funded and administered via a self-directed IRA, learn more with the information on RentPrep today!
Remember, there are many providers out there that can help you to set up your self-directed IRA, and that no one option is going to be the best for everyone.
Today’s complete review of the services offered by New Direction Trust Company should help you form an opinion about this particular service, but remember you have many options to choose from. You could even choose to go with a solo401(k) route instead, so consider what investment option makes the most sense for your future plans.
SDIRA investment properties can be a great way to expand and diversify your investment portfolio and future retirement savings, so keep that in mind as you choose which company is best to support you in the future.