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IRA Financial Blog

Self-Directed IRA Fees Absolutely Do Matter! – Episode 429

Adam Talks

On this episode of Adam Talks, Adam Bergman, Esq. discusses the types of IRA custodial fees you should paying for and why asset valuation fees are not one of them!

Self-Directed IRA Fees Absolutely Do Matter!

This recap is from a podcast episode discussing the importance of Self-Directed IRA custodian fees. Adam Bergman, IRA Financial’s founder, emphasizes that paying asset valuation fees to a custodian is unnecessary and results in significant financial loss over time. He argues that custodians are only required to provide basic administrative services, and charging fees based on the value of the IRA is unjustifiable. Bergman highlights that Self-Directed IRAs allow for a wide range of investment options, emphasizing that the tax code does not limit investment choices within an IRA, except for a few restrictions like life insurance and collectibles.

Furthermore, Bergman compares the fee structure of a flat-fee custodian like IRA Financial to custodians charging asset valuation fees. Using numerical examples, he demonstrates the substantial difference in fees paid over a period of 10 years, showing that asset valuation fees can lead to thousands of dollars in unnecessary expenses. He argues that it is unfair for individuals to pay higher fees simply because their IRA grows in value or they make successful investment choices, especially when custodians provide the same level of service regardless of the account size.

Bergman stresses the importance of being aware of the fees being charged by custodians, as excessive fees can erode the growth potential of an IRA over time. He criticizes custodians who charge asset valuation fees without providing additional value or investment advice to account holders. Bergman encourages listeners to consider alternative custodians like IRA Financial that offer flat fees and do not charge transaction fees, wire fees, or asset valuation fees. He urges individuals to be vigilant and avoid paying unnecessary fees that can significantly impact their retirement savings.

In conclusion, the Bergman expresses frustration with custodians who charge asset valuation fees, labeling it as unethical and unfair to account holders. He emphasizes that individuals should not be penalized with higher fees for making wise investment decisions or experiencing growth in their IRA.

Bergman advocates for transparency in fee structures and encourages listeners to seek custodians that offer fair and reasonable pricing models. Overall, the podcast highlights the detrimental impact of asset valuation fees on IRA wealth accumulation and urges individuals to be proactive in managing their retirement savings to avoid unnecessary financial losses. Listen to the episode to understand how IRA Financial’s fee structure works!

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