One of our newer clients opened an IRA account on Monday and funded an investment on Thursday, giving him a four-day turnaround from getting started at New Direction Trust Company to having his first asset in place. Some prospective clients or asset providers may believe that self-directed investing is a clunky and time-consuming process, but this client proved otherwise. By having his ducks in a row and following a simple procedure, our client was able to put his tax-advantaged dollars to work in a matter of days.
Below are some considerations related to our three-step process that could lead to a similarly efficient transaction experience.
Investment Paperwork – Assembling the applicable documentation may seem like a tedious part of the process, but it certainly doesn’t have to be. If you’re already familiar with subscription agreements or real estate documents, you’ll only have to make minimal changes to execute those same investments for your IRA.
The “name” of the investor must be the title of the self-directed IRA account and not your personal name (i.e. “NDTCO as Custodian FBO John Doe Traditional IRA #111XXXX”). You may not provide your personal signature in the indicated fields on any investment paperwork, apart from on NDTCO forms that we retain to document the transaction (such as our Buy Direction Letter). On paperwork that you do not sign, you will instead sign in the margins as “read and approved”. An authorized signer from NDTCO will sign on the signature lines because we, as custodian of the IRA that “owns” the investment, will officially approve the transaction. We cannot sign any such paperwork without your “read and approved” signatures.
Understanding his responsibilities as a self-directed retirement account holder allowed him to formulate a plan and take a simple step-by-step approach. The dedicated staff at New Direction Trust Company is here to help you reach that same understanding and guide you through as much of the process as possible. For more information about getting started or to discuss the specific steps for initiating your chosen alternative IRA investments, feel free to contact us at 877-742-1270 or firstname.lastname@example.org.