Kingdom Trust Review: Empowering Your Retirement with a Self-Directed IRA
When considering a custodian for your retirement investments, trust and performance are paramount. Our Kingdom Trust review provides an unbiased look at their self-directed IRA services, fee transparency, and customer feedback to tell you if they really deliver on their promise of empowering your financial future.
Kingdom Trust, now rebranded as Choice, is an innovative custodian offering diverse asset management including cryptocurrencies, traditional IRAs, and precious metals, catering to individual and institutional clients.
The Choice platform offers a flexible Self-Directed IRA with contribution limits, tax-deductible contributions based on multiple factors, and a wide array of investment options for portfolio diversification.
Kingdom Trust maintains high regulatory compliance and client protection standards, with measures in place such as fidelity bonds, insurance coverage, and regular audits to ensure clients’ assets are safeguarded.
Kingdom Trust: Company Overview
Kingdom Trust is a trailblazer in providing innovative custody solutions for individuals, advisors, and institutions, with a strong commitment to high-quality service. As an independent qualified custodian, the company excels in managing a wide array of client assets. These include Individual Retirement Accounts (IRA), non-qualified plans, and 401(k) plans, catering to registered investment advisors, broker-dealers, and investment sponsors.
Headquartered in Murray, Kentucky, the company’s customer service team consists of seasoned industry professionals who work in unison with service providers renowned for their expertise in financial, legal, and investment sectors.
Rebranding and Choice IRA
In an effort to expand its reach, Kingdom Trust underwent a complete rebranding to the Choice brand in 2021, signaling a progressive shift in its financial solutions approach. The launch of the Choice platform in May 2020 marked a milestone in the company’s journey, further propelled by the acquisition of Choice Holdings in the first quarter of 2020.
Spearheaded by CEO Radloff, the rebranding resulted in a platform that revolutionizes investment by enabling investors to hold cryptocurrencies in custody alongside traditional assets in a unified account.
Self-Directed IRA Options
Choice IRA offers the flexibility for clients to establish either a Traditional IRA or Roth IRA, thereby streamlining retirement planning with options like Roth IRAs. The platform sets clear contribution limits for its Traditional IRA and Roth IRA accounts, with individuals under 50 allowed to contribute up to $6,500 and those 50 or older having a limit of $7,500. To add to the convenience, contributions can be made through bank transfers using the Choice app, or by sending a check or wire transfer.
Annual limits apply to both IRA and 401(k) contributions, with determinants like age, income, and marital status playing a role. It’s worth noting that all contributions must be made in U.S. dollars and may be tax-deductible based on the individual’s income and employment status. Existing retirement accounts can be rolled over into a retirement account, such as an ira account, with assets transferred using an IRA Transfer, Direct Rollover, or Indirect Rollover, all of which follow specific conditions to prevent taxes and penalties.
Choice IRAs offer a wide range of investment options, including traditional assets, and alternative investments such as ETF shares, cryptocurrencies, precious metals, and stocks. This diversification of investment avenues gives investors a unique edge, allowing them to tailor their portfolio to their specific investment goals and preferences.
Diversifying Your Retirement Portfolio
Diversification, a key strategy in retirement planning, helps in risk mitigation and return maximization by distributing investments across diverse asset classes. Kingdom Trust facilitates this diversification with a range of digital currencies, including Bitcoin, Ethereum, and Litecoin. This innovative approach allows investors to tap into the potential of the burgeoning digital currency market, providing an added layer of diversification.
In addition to digital currencies, Kingdom Trust also offers direct ownership of physical metals as an investment option. Assets such as:
Mutual funds provide a hedge against inflation and can contribute to portfolio appreciation. This unique offering allows investors to customize their portfolios, aligning with specific investment goals or preferences.
Moreover, the company facilitates international investments, which can potentially benefit from different market cycles and increase a portfolio’s buying power. On the other hand, alternative investments such as alternative assets like:
Act as hedges against inflation and offer the potential for higher returns. With these diverse options, Kingdom Trust ensures retirement investors can build a robust and diversified retirement portfolio.
Account Setup and Management
The process to establish a new account with Kingdom Trust is quite simple. It involves the following steps:
Complete an adoption or new account agreement, either online or through paper-based agreements if necessary.
Complete a transfer and investment direction form.
A representative from Kingdom Trust will contact the client the next day to verify the new account setup and provide further assistance or information as required.
Security is at the forefront of Kingdom Trust’s account setup process, ensuring client account access remains protected. The company has a comprehensive disaster and security plan in place, which includes:
Verbal confirmation of transactions with clients
Cross-referencing transaction requests for accuracy
Encrypting data communication channels, including through APIs and secure email.
Transparency in operations is a key commitment of Kingdom Trust. Clients are provided with detailed account statements and a transaction history, which aids in the monitoring of account activity and ensures clients stay informed about their investments.
Choice presents IRA clients with two subscription options: ‘Cold Storage’ with a 1% yearly account fee and ‘Hold Your Keys’ with an annual account fee of $160. The ‘Cold Storage’ plan has no setup fee or minimum balance requirement, while the ‘Hold Your Keys’ plan has a $625 setup fee.
There are no fees charged by Choice for traditional asset custody, and any trading of these assets through Choice itself is fee-free, though Interactive Brokers’ trading fees apply. The fee schedule for trading digital assets is tiered, starting from $0.99 for trades under $50 up to 1% for trades over $500,000. However, it’s worth noting that some clients have expressed dissatisfaction over unexpected charges and changes in the fee structure.
Custody and Storage Solutions
Kingdom Trust is thorough in providing custody and storage solutions. The company provides:
Secure digital wallets
Cold storage solutions for digital assets
Continual updates to security measures and process integrity to ensure the highest level of protection
Multi-authentication cold storage for digital assets
A well-tested cybersecurity policy, which includes a key compromise protocol for regenerating keys and wallets if compromised.
Kingdom Trust offers the following benefits for investors:
Adherence to IRS regulations for physical precious metals storage in a self-directed IRA, ensuring that assets are safely stored
Facilitation of both direct and indirect ownership of precious metals through established relationships with multiple well-regarded storage facilities in the United States and Canada
Commitment to understanding and maneuvering within the regulatory and compliance landscape, highlighting Kingdom Trust’s commitment to its clients’ needs.
Comparing Kingdom Trust to Competitors
Kingdom Trust’s Choice IRA holds its own when juxtaposed with competitors. While the overall costs are slightly higher compared to Alto IRA and iTrustCapital, Choice IRA offers lower fees than Bitcoin IRA, which includes an up-front fee of 12.5% for asset transfers and a 1% fee for sell orders.
Kingdom Trust also offers a broader range of investment options through Choice IRA compared to iTrustCapital, which offers 28 cryptocurrencies, and physical gold and silver. This variety allows investors to diversify their portfolio as per their individual investment goals.
However, there are operational differences between Kingdom Trust and its competitors. Unlike Kingdom Trust, Rocket Dollar requires an LLC to be set up for the IRA, which can be a significant operational difference for some investors. Despite these differences, Kingdom Trust remains a strong contender in the market with its focus on high-quality service and diverse investment options.
Client Support and Education
Kingdom Trust’s client-centric approach is underpinned by support and education. The company offers various educational resources, including white papers and blog posts, to guide clients through investing in precious metals within a self-directed IRA. One of these resources is The Ultimate Due Diligence Guide to Self Directed IRA Custodians and Administrators, created by Kingdom Trust to assist clients in comparing and selecting the right custodians and administrators for their IRAs.
This commitment to client education underscores Kingdom Trust’s dedication to empowering its clients with the knowledge they need to make informed financial decisions. By providing these resources, Kingdom Trust emphasizes its commitment to transparency and its focus on empowering clients with the tools they need to manage their investments effectively.
Pros and Cons of Kingdom Trust
Kingdom Trust, like any service, has its strengths and weaknesses. On the upside, the company allows for investment diversification through options such as precious metals, which can help protect against inflation. Moreover, compared to other crypto IRAs, Kingdom Trust offers competitive fees, which can be an advantage for cost-conscious investors.
However, there has been some client dissatisfaction with aspects of the company’s operation. Some clients have experienced:
Delayed communication and poor responses to distribution requests
Login issues and difficulties reaching customer support or getting timely assistance
Issues when attempting to transfer funds out of IRA accounts
Complaints regarding the efficacy of Kingdom Trust’s referral program.
There have also been concerns about transparency, with reports of service charge increases threatening the confiscation of clients’ holdings if not paid, with fee structures becoming monthly and more expensive. Despite these issues, Kingdom Trust continues to strive for excellence in its services, leveraging its strengths to provide high-quality retirement solutions.
Regulatory Compliance and Client Protection
Regulated by the South Dakota Division of Banking and holding a requisite trust charter, Kingdom Trust is a qualified custodian for traditional, alternative, and digital assets. This ensures compliance with the strict financial regulations and provides clients with the assurance that their investments are in safe hands.
For client protection, Kingdom Trust maintains the following measures:
A fidelity bond and errors and omissions insurance
Annual audits conducted by independent CPAs, assessing both financial statements and internal controls
A Compliance Officer who ensures policies and procedures adhere to relevant rules and regulations
Various insurance coverages for additional risk management
These measures demonstrate Kingdom Trust’s commitment to maintaining the highest standards of regulatory compliance and client protection.
Kingdom Trust stands as a testament to innovation in the world of retirement solutions. The company’s cutting-edge service offerings, commitment to client education and support, and adherence to regulatory compliance underscore its dedication to empowering investors with the tools they need to secure their financial future.
Despite some challenges, such as client dissatisfaction with certain aspects of communication and fee transparency, the company continues to lead the way with its diverse investment options, competitive fees, and commitment to client protection. The company’s forward-thinking approach, embodied in its rebranding to Choice and the launch of its innovative platform, sets it apart in the retirement solutions market.
As we conclude, it’s clear that Kingdom Trust’s commitment to innovation, high-quality service, and client empowerment places it at the forefront of the retirement solutions industry. With the company’s focus on diversification, security, and regulatory compliance, investors have a trusted partner to guide them towards achieving their retirement goals.
Frequently Asked Questions
Who regulates Kingdom Trust?
Kingdom Trust is regulated by the South Dakota Division of Banking.
What is choice by Kingdom Trust?
Choice by Kingdom Trust is an independent qualified custodian regulated by the South Dakota Division of Banking, specializing in unique custody solutions for individual investors.
Where is Kingdom Trust based?
Kingdom Trust is based in the state of South Dakota, where it is registered and regulated. It does not provide, endorse, or sell investment products or endorse individual investment advisors or sponsors.
How do I contact Kingdom Trust?
To contact Kingdom Trust for assistance with account opening and funding, you can reach out to their Client Services at 888.753.6972. Once your account is set up and funded, you can begin self-directing your retirement.
What is Kingdom Trust?
Kingdom Trust is an independent qualified custodian that offers diverse retirement solutions for individuals, advisors, and institutions by managing various types of client assets. Whether you’re an individual, advisor, or institution, Kingdom Trust can provide innovative retirement solutions tailored to your needs.