Expert Interview with Theresa Fette About Retirement Savings and Self Directed IRAs

For better or worse (or a little bit of both), the economic climate has irrevocably shifted in the last 15 years, and it’s not likely to stop anytime soon. The average employee tenure for a position is 4.6 years, according to The Bureau of Labor Statistics’s January 2014 report, instead of working for the same company for their entire career. These seismic shifts have fundamentally altered the way we perceive, and prepare for, retirement. Las Vegas’s Provident Trust Group gives the retiree the tools to best prepare for retirement in today’s economy, and takes it even one step further, allowing their clients to monitor and direct their own IRAs, as well as invest in “alternative assets,” resources outside of the traditional stocks, bonds, and mutual funds. Provident Trust Group’s CEO Theresa Fette took a moment to tell us about some of these recent shifts, and their implications, and things anybody can do to weather the storm. Can you introduce us to Provident Trust Group? Provident Trust Group is based out of Las Vegas, Nevada, and was founded in 2008. We are a privately-owned self-directed IRA custodian specializing in alternative assets. Who is Provident Trust Group’s main clientele, and how does your company meet their specific needs? Provident Trust Group is a B2B organization, but we also have individual clients. Our clientele includes agent groups, entity creation companies, precious metal owners, limited liability companies, real estate property owners and more. We meet their needs by serving as their IRA custodian. Services vary with each client but can include record-keeping and cash disbursements, among others. What inspired you to start Provident Trust Group? What separates you from the rest? My business partner Jason and I purchased Provident Trust Group because we knew there was potential in the alternative asset space and believed the financial world to be stagnant. We’ve spent time and money on technologies that assist us in serving our customers in a more efficient manner. We also have a customer service team that goes above and beyond to assist each client, providing them with a personalized experience. Can you briefly describe what a self-directed IRA is? How do they differ from a Roth or traditional IRA? A self-directed IRA is an individual retirement account. It is very similar to a typical retirement account but allows the account holder to invest in alternative assets. This includes certain options other than stocks, bonds and mutual funds. A custodian holds the assets under one’s account and waits for direction from the investor. Self-directed IRAs can be either Roth or traditional. What are some reasons people might prefer a self-directed IRA? Someone might prefer a self-directed IRA if he or she is interested in alternative assets such as precious metals, real estate, LLCs and more. Self-directed IRAs are also ideal for those who prefer to have control over their investments. You wrote a post a while back about buying a retirement home with a self-directed IRA. What are some good rules of thumb, as far as using self-directed IRAs to prepare for retirement? You cannot invest in a retirement home with an IRA as long as your IRA is the owner of the home. The real estate you purchase with your IRA must be a rental property unless you use the property as a distribution – which allow you to use it as a residence for yourself. What are some reasons someone who’s just beginning their career might want to get started with a self-directed IRA early, to begin planning for retirement? Similarly, do you have any advice for people who are nearing the end of their careers, but still want to investigate self-directed IRAs? It’s never too early or late to open a self-directed IRA. The earlier you begin investing in assets, the more opportunity you have for income growth. If you select a profitable investment, you will most likely have more money in your retirement account when you reach the age at which you can begin taking distributions. If you’re nearing the end of your career, self-directed IRAs are still a useful tool. As long as you meet the age requirements, you can take money out of the IRA with no penalty. For more updates from Provident Trust Group, like them on Facebook, follow them on Twitter, and connect with them on LinkedIn.