New Direction IRA Review: Navigating Your Retirement Savings in 2024
If you’re considering New Direction Trust Company for your self-directed IRA, you’ve likely asked yourself if it’s the right choice for secure and diversified retirement investments. Our incisive New Direction IRA review will examine their services, from alternative investment options to fee structures, customer support level, and how they compare to industry rivals. No fluff, just the facts you need to determine if New Direction Trust Company meets your investment needs.
Key Takeaways
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New Direction Trust Company, established in 2003, offers a range of self-directed IRA services with a focus on alternative investments, digital portfolio management, and customer education in investment strategies.
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Investment options provided by New Direction Trust Company include Precious Metals IRAs, Real Estate IRAs, and a variety of alternative investments such as private equity, lending, and unique options like oil, timber, and air/space.
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While New Direction Trust Company is praised for its customer service and educational resources, it has a complex fee structure and mixed customer reviews, with allegations of partnerships with disreputable entities in some instances.
New Direction Trust Company: An Overview
In 2003, Bill Humphrey and Catherine Wynne laid the foundation of a company that would later evolve into a leading self-directed IRA provider – the New Direction Trust Company. With a focus on affordable real estate investments and a passion for exceptional customer service, Humphrey and Wynne brought their extensive market and tax law knowledge to the table, aiming to advance investment opportunities for clients. As they transitioned from New Direction IRA to New Direction Trust Company in 2018, they also transitioned into becoming a Kansas-regulated non-depository trust company.
The company’s journey from a basement to larger office spaces and acquiring franchises nationwide is a testament to its growth and credibility. With over two decades of experience in diversifying investment strategies, New Direction Trust Company offers a variety of services with a focus on alternative assets and digital portfolio management. Their modernization and digitization efforts have optimized the self-directed investment experience for their clients. In line with their mission, they provide investors with educational information in a digital format, guiding them to success using self-directed investing platforms.
Investment Options with New Direction IRA
New Direction Trust Company stands out as a flexible and experienced partner in the self-directed IRA industry, particularly in the realm of alternative investments. As a reputable investment firm, they make it easier for you to diversify your portfolio with a wide range of options at your disposal. Before delving into these investment opportunities, it’s worth considering direction trust company reviews to gain insight into their services.
The first enticing option is the Precious Metals IRAs. With New Direction IRA, you can invest in physical precious metals like:
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gold
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silver
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platinum
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palladium
They allow you to select from a wide array of dealers, accommodating both online brands and local coin shops.
New Direction IRA, including Roth IRA options, caters well to those with an interest in real estate. Their Real Estate IRAs permit direct ownership of physical real estate properties and investments in Real Estate Investment Trusts (REITs).
Finally, they provide options to invest in Private Equity and Lending, along with other alternative investments. These options provide a gateway to invest in private companies, startups, and loans, along with oil, timber, livestock, and even air/space.
Precious Metals IRAs
Investors aiming to add tangible assets to their portfolios can find a golden opportunity in investing in a precious metals IRA with a reputable gold IRA company like New Direction IRA. They offer investment in physical precious metals, not just gold certificates or ETFs. This includes:
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Gold
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Silver
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Platinum
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Palladium
Each metal has specific purity standards. For instance, gold must be 99.5% pure and silver must be 99.9% pure, while an exception is made for Gold American Eagle coins despite being less than 99.5% pure.
When you invest in precious metals through New Direction IRA, the metals are securely stored in approved depositories, providing peace of mind to investors. The depository storage fees for precious metals are determined by the chosen depository.
Real Estate IRAs
By offering Real Estate IRAs, New Direction IRA enables direct ownership of physical properties and investments in Real Estate Investment Trusts (REITs). This can serve as a powerful tool for diversifying your retirement portfolio.
You are not limited to a specific type of property. New Direction IRA allows investment in various types of real estate, including:
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Residential and commercial properties
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Rental units
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Fix-and-flip projects
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Undeveloped land
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Mineral rights
This flexibility is a major advantage for investors looking to diversify their investment portfolio.
Private Equity and Lending
Private Equity and Lending options through New Direction IRA present a cost-effective way to venture into potentially lucrative investments. Investors can directly invest in private companies, including startups and pre-IPO tech companies, making it a lucrative option for those willing to take risks for potentially higher returns with the help of an investment company.
The other side of the coin is private lending, which includes home loans, business startup loans, and buying out existing loans. This often results in more favorable rates for borrowers and interest profits for investors. Supporting local businesses or projects, like funding a craft brewery, is a unique way to aid in community growth while adding diversity to your retirement savings.
New Direction IRA also offers education on tax concepts like UBIT, UDFI, and UBTI, which can impact the tax advantages of private equity and lending investments, as well as providing information on Coverdell Education Savings Account options.
Other Alternative Investments
New Direction IRA, a reputable IRA company, offers unique opportunities for portfolio diversification with its range of other alternative investments. These include oil, timber, livestock, and even air/space investments.
Oil investments could provide a valuable commodity addition to retirement portfolios, while timber investments offer the potential for growth and sustainability. Livestock investments allow for tangible asset diversification within self-directed IRAs. And for the adventurous investor, air and space investments represent a frontier sector that New Direction IRA makes accessible for individual retirement accounts.
Fee Structure and Costs
Investing with New Direction Trust Company involves certain fees. The company charges annual administration fees per asset, with different rates for various types of investments. For instance, mortgages for real estate are billed at $235, and a flat annual fee of $335 is levied for real estate IRAs.
In addition to the annual administration fees, there are also processing fees, which range from $20 for a check request to $50 for overnight mail, with specific transaction fees like Roth conversions at $95 and in-kind asset registration at $50. Account holders may face additional costs such as $30 for paper statements, late fees of $40 per month, special services billed at $150 per hour, and forced liquidation fees of $150 per incident.
Despite these fees, the company offers some free services, including the Online Bill Pay service and ACH transfers out of funds.
Customer Support and Resources
New Direction IRA offers a variety of educational resources, including:
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A video library with expert insights
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Investment guides on topics such as private lending and real estate
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Content on fraud prevention
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Live and pre-recorded webinars
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Whitepapers
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An informative blog
These resources clearly reflect their commitment to educating their clients.
Account management is streamlined through their digital client portal, allowing clients to easily track their portfolios and utilize online resources. Customer support can be accessed via phone or online form. However, they do not offer financial advice or live chat support. Some clients have reported negative experiences with the customer service, particularly during times of hardship.
Client Reviews and Ratings
Client reviews and ratings for New Direction IRA are mixed, with both praise and criticism. They are accredited by the Better Business Bureau with an A+ rating, a testament to their reliable services. Reviews on Google range from praise for customer service in handling small gold IRA holdings and real estate transactions, to criticism for issues like IRA transfers and poor communication.
However, some clients have reported allegations of fraudulent practices and a perceived decline in service quality. These include forming partnerships with disreputable entities in the precious metals industry. On a positive note, no customer complaints are filed on platforms like Business Consumer Alliance and Ripoff Report.
Opening an Account with New Direction IRA
Opening an account with New Direction IRA is a straightforward process. It begins with a simple online application form, which can be completed in about 15 minutes. During account setup, identity verification is required, which includes providing the following information:
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Full legal name
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Permanent mailing address
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Date of birth
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Social Security number
Additional identity verification may require:
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An upload of a driver’s license or state-issued ID, which can be conveniently done using a mobile phone camera by scanning a QR code provided during the account setup.
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Applicants planning to transfer or roll over funds from another financial institution should have their current account statement ready.
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Beneficiary information must be supplied during the account setup process, including their names and Social Security Numbers.
After the account is opened, it can be funded through contributions, transfers, or rollovers in preparation for investment selection. Certain types of accounts require additional paperwork and follow-ups.
Pros and Cons of New Direction IRA
Investing with New Direction IRA comes with its pros and cons. On the plus side, the company is known for prompt transaction processing, offering free yet substantial information on self-directed IRAs, and boasting a high rating with the BBB. They are an excellent choice for investors who value educational resources and quick transaction processing.
However, the platform might present challenges for novice investors, especially those interested in gold or silver IRAs. This implies the need for careful consideration before choosing this custodian. Choosing the right self-directed IRA custodian is vital to avoid future frustration, wasted resources, and aggravation.
Comparing New Direction IRA to Competitors
Comparisons with competitors highlight some distinctions of New Direction IRA. For instance:
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Alto IRA stands out for its low fees and a technologically advanced platform.
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Rocket Dollar features a flat monthly administration fee suitable for larger portfolios.
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Equity Trust, despite no transaction fees, incurs higher administrative costs and doesn’t provide checkbook control.
These contrast with New Direction IRA’s fee structure, which is based on the type of investment.
In terms of services, key differentiators include:
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The extensive experience and traditional investment options at Equity Trust
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The unique audit protection and checkbook control at IRA Financial
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uDirect’s real estate focus
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The Entrust Group’s enduring presence since 1981 as a custodian
Each offers a unique proposition compared to New Direction IRA.
In terms of account setup, Alto IRA and Rocket Dollar offer a quick online setup experience. In contrast, IRA Financial and uDirect IRA are noted for a more complex account establishment process. The best SDIRA companies, which include contenders like Equity Trust and Alto IRA, are recognized for their strong customer service. However, the details on New Direction IRA’s client satisfaction need to be compared to determine their competitive stance.
Expert Insights on New Direction IRA
Experts have highlighted the prowess of the experienced leadership team at New Direction Trust Company. The team includes:
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Jessica Brooks, Vice President, who focuses on the company’s operations for institutional services clients
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Aaron Benway, Chief Revenue Officer, who oversees sales, marketing, and strategic growth
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Nikki Sisneros, Vice President of Trust Accounting
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Kevin Dodson, who fosters an empowering company culture
These individuals contribute to the company’s success.
A prime example of the high-caliber knowledge present within the New Direction Trust Company’s leadership is James Johnson. Recognized as a foremost expert on gold investing with over 20 years in the IRA and precious metal sphere, he exemplifies the company’s commitment to expertise and excellence.
Summary
In conclusion, New Direction Trust Company has proven its worth as a reliable self-directed IRA provider since 2003, offering a range of investment options, a straightforward account setup process, and substantial educational resources. However, like any financial institution, it has its strengths and weaknesses, and potential clients should weigh these before deciding. Always remember, the right investment compass can steer your retirement savings ship towards a secure and prosperous future.
Frequently Asked Questions
What is the new direction IRA lawsuit?
The new direction IRA lawsuit involves allegations of fraudulent and deceptive schemes related to precious metals, violating the Commodity Exchange Act and CFTC regulations.
Do self-directed IRAs get audited?
Yes, self-directed IRAs can get audited by the IRS, which may lead to significant tax adjustments and penalties. This can outweigh the benefits of having a self-directed IRA.
Is a self-directed IRA a trust?
Yes, a self-directed IRA can be structured as a trust, providing the option for active management within its confines. So, a self-directed IRA can indeed function as a trust.
What are the perils of self-directed IRAs?
The perils of self-directed IRAs include a lack of legal protection, heightened risk of fraud, high fees, and sole responsibility for evaluating investments. It’s important to carefully review all associated risks before deciding to invest.
What investment options does New Direction IRA offer?
New Direction IRA offers a diverse range of investment options, including Precious Metals IRAs, Real Estate IRAs, Private Equity and Lending, and Other Alternative Investments such as oil, timber, livestock, and air/space.
