The Entrust Group Review: Your Guide to Self-Directed IRA Investing

If you’re eyeing The Entrust Group for your self-directed IRA, you want to know the facts. In this no-nonsense “the entrust group review”, we’ll cover the essentials: services, fees, and user satisfaction. Whether you’re considering real estate, precious metals, or private equity, we get to the heart of what The Entrust Group offers—giving you the information you need to make an educated decision without the fluff.

Key Takeaways

The Entrust Group: A Comprehensive Overview

The Entrust Group logo on a blurred background

For over four decades, The Entrust Group has made a name for itself in the realm of self-directed IRA administration, a testament to their industry longevity and credibility. With a mission to empower investors, Entrust provides access to tax-advantaged, self-directed accounts and a plethora of alternative investments. Their commitment to investor education is noteworthy, designed to equip clients with a comprehensive understanding of self-direction and control over their financial future.

Their services particularly appeal to real estate and private equity investors. Thanks to their proprietary and intuitive online investment platform, Entrust facilitates a broad spectrum of alternative investment choices, thereby enhancing the investment experience.

Company Background

Established over 40 years ago by Hugh Bromma, The Entrust Group has carved a niche for itself as a pioneer in self-directed IRA services. Their impressive track record, spanning four decades, speaks volumes about their relentless commitment to enabling investors to manage their own portfolios.

Currently, The Entrust Group administers over $3 billion in client assets, underscoring their considerable market presence and reach.

Services Offered

The Entrust Group offers a diverse range of self-directed investment accounts, catering to varied retirement planning needs. Their service portfolio includes:

However, investors must bear in mind that while The Entrust Group administers these accounts, they do not offer financial advice to their clients. They emphasize that Self-Directed IRAs (SDIRAs) are best suited for seasoned investors who understand both the rules of IRAs and the intricacies of their investment choices.

Alternative Investment Choices with The Entrust Group

Diverse investment options

The Entrust Group’s philosophy centers on endorsing investors’ freedom to select assets they comprehend and are passionate about, in line with IRS authorization. Offering an array of alternative investments, including:

Entrust allows investors to diversify their portfolios and potentially optimize their returns.

Real Estate Investments

To invest in real estate through The Entrust Group, investors follow a structured process that includes opening a Self-Directed IRA and submitting required documentation to finalize the property purchase. The range of real estate investment options is extensive, encompassing single or multi-family homes, REITs, raw land, commercial real estate, and even offshore properties.

However, self-directed IRA investors must be mindful of the rules and obligations associated with property investment. One must avoid prohibited transactions like living in or personally renovating the IRA-owned property. In addition, the title of the property should be vested in the name of the IRA, a process wherein The Entrust Group plays a crucial role in reviewing investment documents for correct titling.

For investors seeking enhanced management functionalities, Entrust offers tools like the myDirection Card and an advanced online client portal, making real estate investment a breeze.

Private Placements and Private Equity

Private equity investing through The Entrust Group opens up opportunities to invest in privately held entities, such as:

This form of investing can potentially safeguard an investment portfolio from public market fluctuations and provide opportunities to invest in early-stage ventures, making it a valuable source of investment advice.

The process to invest in private equity with The Entrust Group is straightforward, involving opening a Self-Directed IRA, finding an investment opportunity, and having Entrust review and process the investment. However, investors must keep in mind that some private equity investments may require accredited investor status, which typically involves having a certain level of income or net worth.

Entrust clients can browse and research private equity offerings through the Entrust Connect Marketplace, a platform that publishes new offerings weekly.

Precious Metals and Cryptocurrency

The Entrust Group facilitates investing in a variety of precious metals within a Self-Directed IRA, including acceptable metals like:

These metals must adhere to the IRS purity standards. The IRS rules dictate that precious metals owned by an SDIRA must be stored in an approved depository, with personal possession of these metals being prohibited.

Investors interested in precious metals need to open an SDIRA, select both a dealer and a depository, and conduct the transaction through The Entrust Group. Options for depositories include Dakota Depository Company, Delaware Depository Services Company, and Idaho Armored Vaults. It’s worth noting that taking physical possession of IRA-owned precious metals is considered a taxable distribution and may incur penalties.

Account Types and Offerings

Self-Directed IRA account types

The Entrust Group provides a broad array of account types, including:

These account offerings, designed by financial planners, cater to a diverse range of investment needs for the account holder, whether you’re planning for retirement, healthcare, or education expenses.

Self-Directed IRAs

The Entrust Group offers both Traditional and Roth Self-Directed IRAs, each with distinct tax advantages. Traditional IRAs offer pre-tax contributions and tax-deferred growth, with taxes paid upon distribution after age 73, when required minimum distributions begin. On the other hand, Roth IRAs allow post-tax contributions with the potential for tax-free growth and qualified tax-free distributions. They also feature no required minimum distributions and penalty-free withdrawal of original contributions at any time.

For businesses, The Entrust Group offers SEP and SIMPLE IRAs. SEP IRAs permit tax-deductible contributions up to 25% of employee compensation for eligible employees aged 21 or over who have worked three of the last five years and received at least $750 in compensation. SIMPLE IRAs are available for businesses with 100 or fewer employees, allowing tax-deferred contributions and offering employer tax deductions for contributions made to employees’ accounts.

Health Savings Accounts (HSAs)

The Entrust Group’s Health Savings Account (HSA) offers a triple tax advantage for investment in healthcare. These accounts allow for tax-deductible contributions, tax-deferred earnings, and tax-free withdrawals for qualified medical expenses. The funds in these HSAs can accumulate over time without yearly spend-down requirements.

After reaching 65 years of age, these funds can be used penalty-free for any expenditures, effectively serving as a retirement asset.

Education Savings Accounts (ESAs)

An Education Savings Account (ESA) with The Entrust Group is designed to save for a child’s education with tax-free capital gains. These accounts can cover a wide variety of educational expenses such as tuition, books, and fees at any institution of higher learning.

ESAs are an excellent tool for parents or guardians looking to invest in a child’s future education.

Fee Structure and Costs

Fee structure overview

The Entrust Group’s fee schedule is designed to accommodate various types of investors, scaling in relation to the complexity of account administration. Fees are based on asset value and do not incur penalties for the number of assets held within an account.

Account Setup and Maintenance Fees

There is a one-time fee of $50 required to establish an account with The Entrust Group. The annual recordkeeping fees are $199 for asset values under $50,000, and $299 for asset values of $50,000 or more, plus an additional 0.15% on the value over $50,000. The 0.15% fee does not apply to uninvested cash within the account, and recordkeeping fees are capped at a maximum of $2,299 per year regardless of asset value.

To sweeten the deal, The Entrust Group’s referral program offers a discount of $50 off recordkeeping fees for each successful referral, allowing for up to $500 in savings annually. All in all, The Entrust Group’s fee structure is designed to accommodate investors with various portfolio sizes, ensuring accessibility and quality service for self-directed IRAs.

Transaction Fees

Transaction fees at The Entrust Group are one-time charges that apply to specific types of transactions, which do not affect every account. These fees can cover a variety of items such as:

The specific items involved in a transaction, such as the services requested or additional handling required, influence the fee amount charged by The Entrust Group.

Customer Support and Experience

Proud of its award-winning online client portal and mobile app, The Entrust Group provides round-the-clock account access, meriting the “Best Online Portal” title from Investopedia.

Their customer service representatives, like Susanna, have been praised for their ownership, empathy, and excellent follow-up service.

Client Reviews and Feedback

The Entrust Group has received a mix of reviews from clients highlighting varied experiences. Some customers have reported positive experiences with The Entrust Group’s customer service, lauding their timely responses and effective solutions. However, it’s important to note that not all entrust group reviews are glowing. Some clients have expressed dissatisfaction over slow service and delays in returning calls.

Despite the mixed feedback, The Entrust Group continually strives to improve its services and resolve any issues, emphasizing the importance of customer satisfaction. It’s worth noting that client feedback is crucial in shaping a company’s growth and development, and The Entrust Group values the opinions and experiences of its customers.

Better Business Bureau Rating

Adding another feather to its cap, The Entrust Group boasts an A+ rating from the Better Business Bureau. This rating reflects the company’s commitment to customer service and its consistent efforts in resolving customer issues.

Security and Protection Measures

For safety and protection, The Entrust Group operates under the regulatory oversight of entities such as the SEC, CFTC, and IRS, and complies with Department of Labor regulations for the employee benefit plans they provide. They also employ robust cybersecurity measures and stringent data protection protocols to safeguard client information.

Cybersecurity Measures

The Entrust Group ensures that client data is well-protected, employing industry-standard firewalls and server authentication to prevent interference or access from external intruders. Additionally, client personal information is safeguarded using secure cloud-based environments to mitigate potential online threats.

The Entrust Group emphasizes the importance of personal information security through employee training and policies that mandate the protection of client data. They also advise investors to use unique passwords, keep their devices updated, and stay informed about cybersecurity threats as part of their responsibility when engaging with their services.

Insurance Coverage

The Entrust Group ensures that the uninvested cash held in an account is insured up to $5 million and is placed only in government-insured institutions. However, it’s worth noting that investments such as precious metals or other non-cash assets held by The Entrust Group are not insured by the FDIC.

Though the non-cash assets are not insured, The Entrust Group employs stringent safeguards to protect these investments through a secure proceeding. Their commitment to security and protection offers peace of mind to investors, knowing that their assets are in safe hands.

Comparing The Entrust Group to Competitors

Comparison with competitors

To fully appreciate The Entrust Group’s offerings, it’s beneficial to compare them with their competitors. Factors to consider include:

Let’s explore how The Entrust Group stacks up against competitors like Rocket Dollar and Equity Trust.

Key Differences

Comparing The Entrust Group with competitors such as Rocket Dollar and Equity Trust reveals some key differences. Equity Trust offers a size-based fee structure similar to The Entrust Group, but with different fee ranges and setup costs. Rocket Dollar’s fee structure, involving an upfront setup fee followed by a monthly fee, may appear more cost-effective for some investors, but it may take several years to match the total cost of The Entrust Group’s services.

In terms of investment options, Rocket Dollar’s options align more with investors who require less support and have straightforward investment goals. This indicates that they may offer a simpler array of options compared to The Entrust Group, which offers a wider range of account types and a sophisticated online management system.

Choosing the Right Self-Directed IRA Custodian

The selection of an appropriate self-directed IRA custodian requires thoughtful evaluation of your unique needs, encompassing your desired IRA type and investment preferences. The ideal custodian should offer:

If cost-effectiveness and simplicity are your priorities, Rocket Dollar may be a better choice. However, if you’re looking for a wider range of account types and a sophisticated online management system, The Entrust Group may be the preferred option. It’s also crucial to consider a custodian’s longevity and market experience, as seen with The Entrust Group’s considerable history and asset base, which can enhance investor confidence.

Opening an Account with The Entrust Group

The process of opening an account with The Entrust Group is straightforward and efficient, can be finished online in less than 10 minutes, and doesn’t require a minimum balance. For those unfamiliar with the self-directed IRA process, The Entrust Group is ready to provide financial advice and assistance.

Online Account Opening Process

Starting your journey with The Entrust Group involves the following steps:

  1. Set up an online profile

  2. Select a self-directed IRA that suits your investment strategy

  3. Gather the necessary personal information

  4. Complete the online profile setup

  5. Open your Entrust account

  6. Fund your account

  7. Proceed to invest in alternative assets.

The Entrust Group provides online forms that can be conveniently filled out and submitted through their entrust website or the Entrust mobile app, streamlining the account opening process.

Paperwork and Verification

Opening a self-directed IRA with The Entrust Group requires submitting personal documentation such as Social Security Number, birthdate, legal address, a digital copy of a government-issued identification, credit card information, and the beneficiary’s information including their name and Social Security Number. Verification for account opening can be completed using any of the following unexpired documents: driver’s license, state-issued ID, current US passport, alien registration card, or a certified US birth certificate.

These forms, available for download from The Entrust Group’s website, should be manually submitted via fax, email, or standard mail to open an account.

Summary

Choosing the right self-directed IRA custodian is a significant decision that can greatly influence your financial future. The Entrust Group, with its comprehensive service offerings, excellent customer service, and robust security measures, stands out as a strong contender for investors seeking diversification through alternative investments.

Whether you’re an investor eyeing the real estate market, interested in private equity, or looking to invest in precious metals or cryptocurrencies, The Entrust Group can cater to your investment needs. Their flexible account types accommodate various retirement planning needs, and their fee structure, while complex, is designed to cater to different types of investors. While customer reviews are mixed, their A+ rating from the Better Business Bureau affirms their commitment to customer satisfaction. So why wait? Take charge of your retirement savings with The Entrust Group today!

Frequently Asked Questions

Is Entrust a reputable company?

Entrust is considered a reputable company, with a 3.6 out of 5 rating and over half of employees recommending it as a good place to work. It’s important to consider the overall positive outlook and feedback from employees when evaluating the company’s reputation.

What is the Entrust Group Inc?

The Entrust Group Inc is a leading provider of self-directed IRA administration services, offering account administration for self-directed retirement accounts and tax-advantaged plans for over 40 years.

What alternative investment options does The Entrust Group offer?

The Entrust Group offers a diverse selection of alternative investment options, such as real estate, promissory notes, private equity, precious metals, and cryptocurrencies. Consider exploring these options for potential investment opportunities.

What types of accounts does The Entrust Group provide?

The Entrust Group provides a variety of self-directed investment accounts, such as Traditional and Roth IRAs, HSAs, ESAs, individual 401(k) plans, and SEP IRAs.

How does The Entrust Group’s fee structure work?

The Entrust Group’s fee structure is based on asset value without penalties for the number of assets held. They charge a one-time $50 fee to establish an account and annual recordkeeping fees based on asset value.