Using Your Self-Directed IRA to Cover Asset Value Fees

by | Apr 14, 2024 | Self Directed IRA

Using Your Self-Directed IRA to Cover Asset Value Fees




0:00 Paying asset valuation fees with your Self-Directed IRA
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If you’re paying asset valuation fees with your Self-Directed IRA, you have to ask yourself, “Why?” IRA Financial has a flat fee which not only can save you money but minimizes concerns come tax time. Learn more from Adam Bergman, Tax Attorney and founder of IRA Financial.

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About IRA Financial:

IRA Financial Group was founded by Adam Bergman, a former tax and ERISA attorney who worked at some of the largest law firms. During his years of practice, he noticed that many of his clients were not even aware that they can use an IRA or 401(k) plan to make alternative asset investments, such as real estate. He created IRA Financial to help educate retirement account holders about the benefits of self-directed retirement plan solutions.

IRA Financial Group is a retirement account facilitator, document filing, and do-it yourself document service, not a law firm. IRA Financial Group does not provide legal services. No attorney-client relationship exists between Client and IRA Financial Group, its management, salespersons or IFG’s in-house legal counsel. IRA Financial Group provides IRA retirement facilitation service and CANNOT provide Client with legal, investment, or financial advice. Prior to making any investment decisions, please consult with the appropriate legal, tax, and investment professionals for advice.

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IFG is not engaged in rendering legal, accounting or other professional services. If legal advice or other professional assistance is required, the services of a competent professional person should be sought. (From a Declaration of Principles jointly adopted by a Committee of the American Bar Association & a Committee of Publishers and Associations.). The scope of Professional Services does not include the costs of any custodian related services.

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Investing in alternative assets with a self-directed Individual retirement account (IRA) can be a powerful way to diversify your retirement portfolio and potentially boost your returns. However, it’s important to understand the fees involved in holding these assets, particularly asset value fees.

Asset value fees are a type of fee that some self-directed IRA custodians charge to hold alternative assets such as real estate, private equity, or cryptocurrencies. These fees are generally calculated as a percentage of the value of the asset being held in the IRA, and they can vary widely depending on the custodian and the type of asset.

Paying asset value fees with your self-directed IRA can eat into your investment returns, so it’s important to consider these fees carefully when selecting a custodian. Some custodians may charge lower fees for certain types of assets or offer fee waivers for larger account balances, so shopping around for the best deal is essential.

It’s also important to understand how asset value fees are calculated and when they are charged. Some custodians may charge these fees annually, quarterly, or even monthly, so you’ll want to factor these costs into your investment strategy and ensure that they don’t eat up too much of your returns.

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One way to minimize asset value fees with your self-directed IRA is to invest in assets with a lower cost structure. For example, real estate investments may incur additional fees for property management, maintenance, and other expenses, so choosing assets with lower ongoing costs can help reduce the impact of asset value fees on your investment returns.

Another option is to negotiate with your custodian to lower or waive asset value fees, especially if you have a sizable account balance or are investing in a high-value asset. Some custodians may be willing to work with you on fees, so don’t be afraid to ask for a better deal.

Overall, paying asset value fees with your self-directed IRA is a necessary cost of investing in alternative assets, but it’s important to be aware of these fees and factor them into your investment strategy. By understanding how these fees are calculated, when they are charged, and how to potentially reduce them, you can make more informed investment decisions and maximize your retirement savings.

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