Preferred Trust is a custodian for self-directed IRA accounts. Offering an opportunity to build substantial retirement wealth, these unique retirement accounts allow investors far greater control and freedom than do traditional IRAs.

Self-directed IRAs are different from traditional accounts, which are limited by rules that prohibit alternative investments. For example, with traditional IRAs, investors cannot utilize retirement funds to purchase real estate, precious metals, or other non-publicly traded assets. No matter which alternative investments you select, a Preferred Trust self-directed IRA offers much more freedom to diversify your financial portfolio.

Why be Limited by IRAs?

As a seasoned investor, you want greater ease, flexibility, and control over your retirement dollars. You certainly won’t get that from a traditional IRA, which locks you out of participation in alternative investments and locks you into returns controlled by the stock market. Your ability to diversify investments will lead to greater returns for retirement.

By allowing alternative investments, a self-directed IRA opens the doorway to solid, long-term income growth and increased portfolio values. Choose from a diversity of investment possibilities, including non-publicly traded assets. Self-directed IRAs offer experienced investors an opportunity to leverage marketplace knowledge to increase investment returns. Invest in what you know and enjoy, such as real estate or precious metals.

See IRS Publication 560 and IRS Publication 590 for more details regarding IRAs.

Build the Value of Your Current Portfolio

With traditional IRA accounts, investors are limited by rules that block them from attractive alternative investment opportunities. With a Preferred Trust self-directed IRA, seasoned investors have an opportunity to take portfolios to the next level. You may choose from a wide range of alternative investment funding options.

Sample of Alternative Investment Options

Real Estate

Fund your IRA with a variety of properties such as single family and multi-unit homes, apartment buildings, co-ops, condominiums, commercial property, and improved or unimproved land. Use your IRA to purchase an investment home. Increase the value of your IRA through monthly rent income or property sale proceeds.

Download our White Paper: Buying Real Estate with a Self-Directed IRA

Real Estate Investment Trusts (REITs)

Sold on major exchanges, this security represents an investment in real estate properties or mortgages. Account holders can invest in REITs either by purchasing their shares directly on an open exchange, or by investing in a mutual fund that specializes in public real estate.

Precious Metals

The main advantages of investing in precious metals through an IRA are its tax benefits and stability. The specific tax benefits depend on whether you choose a traditional or a ROTH IRA. All purchased precious metals are securely maintained in an identified depository on behalf of the IRA holder. To qualify as an IRA-approved product, precious metals must meet minimum fineness levels. The American Gold Eagle is the only exception to the following numbers. Minimum gold fineness: .995. Minimum silver fineness: .999. Minimum platinum fineness: .9995. Minimum palladium fineness: .9995. Examples of non-approved precious metals products include gold prior to 1933, gold Krugerrands, and 90% US silver coins.

In reality, the investments options are extensive and applicable so long as they do not fall into the following Prohibited Transaction categories:

  • Collectibles
  • Metals
  • Gems
  • Stamps
  • Coins
  • Alcoholic Beverages

Download our White Paper: Precious Metals

Private Debt Investments, Deeds of Trust / Mortgage Notes

These include notes secured by deeds of trust / and or mortgages; contracts for deeds (taking over an existing loan); and corporate debt offerings. Deeds of trust or mortgage notes provide a turn-key solution for investing in real estate without the personal commitment.

Download our White Paper: Why Invest In Trust Deeds?

Limited Partnerships

Unincorporated businesses in which certain partners are liable only to the extent of their investments. Other individuals, called limited partners, may invest in the business but are not directly involved in management. Limited partners are liable only to the extent of their investments.

Limited Liability Company (LLC)

Legal organization that provides the tax advantages of a partnership while limiting the legal liability of individual partners.

Private Equity Investments / Private Placements

These investment options include the C-corporation equities, limited partnerships, limited liability companies, and unit investment trusts.

Other Options

Beyond many of the popular alternative investments available for self-directed IRAs there are even more possibilities available for self-directed investors. Review the IRS guidelines to ensure you are accurately complying with them prior to purchasing alternative investments.

Additional self-directed IRA investment possibilities:

  • Accounts Receivable Financing
  • Building Bonds
  • Commercial Paper
  • Equipment Leasing
  • Factoring Investments
  • Oil and Gas Investments
  • Judgments/Structured Settlements

Why Preferred Trust?

Launched in 2007, Preferred Trust was created as a new kind of custodian for retirement accounts. From the very beginning, we have endeavored to break down conventional thinking and offer a full spectrum of options virtually unknown with traditional IRAs. As your custodian of choice, we provide the resources and attentive service you desire. Integrated with a focus on innovative technological capabilities, Preferred Trust provides access to client accounts, statements, and expedited forms processing directly through our website portal.

The responsibilities of Preferred Trust include: safely holding the liquid funds and invested assets purchased on behalf of the Depositor (you); collecting and receiving income and principal on behalf of the Depositor; and making disbursements from the account as directed by the Depositor in accordance with the account agreement.

The Preferred Trust team is dedicated to providing personalized service to each of our clients, whom we always know by name. Emphasizing communication and cooperation, we work as a team to provide prompt assistance to help you to build retirement wealth.

Business Development

Why should you open a self-directed IRA? How does control over your retirement account provide you with opportunities for greater wealth? Do you have a former employer 401K plan? Ask our Sales Team how easy it is to self-direct your retirement portfolio. These experienced professionals will help you get started in a snap. They’ll also show you how alternative investments can free you from the restrictions of the stock market and facilitate your entry into real estate, precious metals, or other investments.

Customer Service Team

Our Customer Service Team specializes in assisting clients with general account inquires. They provide expert answers to questions concerning account balances, initiating investments, our fee structure, establishing online account access, and account updates. Consider them your go-to people for quick service with a smile.

Transfers Team

After initiating enrollment in an SD-IRA account, our Transfers Team works hand-in-hand with you to seamlessly transfer funds from your prior institution to Preferred Trust. They’re diligent about expediting fund transfers so you can put your money to work immediately! The team also will set up recurring monthly contributions to ensure steady growth for your investment accounts.

Investment Team

Alternative investments provide abundant investment options. With your SD-IRA account, you CONTROL investment type, terms, and rate of return. Our Investment Team assists with processing all client initiated investments to ensure funds are fully qualified. As your trusted custodian, we obtain the proper paperwork and facilitate processing to integrate your investment choice with your IRA, per applicable government regulations. Some investments may include real property, trust deeds, and precious metals.

Accounting Team

Our Accounting Team processes all IRA payments, contributions, distributions, account statements, and documentation. Since the IRA owns your investments, all associated expenses and income must be appropriately applied within your account. We communicate with you regarding all account transactions. You, however, direct all of the transactions, which might include payments for insurance, taxes, and HOA fees applicable for a rental property.

Full Transparency Means Full Peace of Mind

Preferred Trust provides an online portal that allows access to your account, as well as complete digital forms to facilitate transactions. Through Adobe® EchoSign® integration, we can facilitate electronic signatures, which are an easy and legal way to indicate consent on our digital documents. Transparency helps us to better serve you.

Preferred Trust provides you Safety and Security. As an IRA custodian, we operate as a state and federally regulated financial institution. We are an accredited member of the Nevada Better Business Bureau.


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