Retirement account owners and their advisors want choices. They want investment options. They want the flexibility to invest funds held in individual retirement accounts (“IRAs”) and single-participant 401(k) plans in non-traditional or alternative investments.
Broader Range of Non-Traditional Asset Classes
They need an IRA custodian that can custody (hold) a broader range of asset classes so they can properly diversify the investment portfolio, improve the risk return ratio, and effectively manage the inherent investment risks in the IRAs and individual 401(k)presented by market-only plans. They need an IRA custodian that understands these needs and has the prerequisite experience, expertise, and technical competency to deliver. They need an IRA custodian that not only understands self-directed IRAs and single-participant 401(k) plans but has expertise in real estate and real estate related assets. They need an IRA custodian like Exeter Trust Company.
Alternative Investments
Exeter Trust Company is an IRA custodian with a specialty emphasis in the following non-traditional or alternative investment areas.
- Real estate and real estate related assets, including various types of investment real property such as income producing residential and commercial properties, net lease properties (NNN), raw or undeveloped land, mineral rights and more)
- Promissory Notes secured by Deeds of Trust (“Deeds of Trust”)
- Promissory Notes secured by Mortgages (“Mortgages”)
- Unsecured promissory notes or installment notes
- Convertible promissory notes
- Simple Agreement for Future Equity (SAFE)
- Real Estate Investment Trusts (“REITs”)
- Tax Lien Certificates (“Tax Liens”)
- Limited Partnerships (“LPs”)
- Limited Liability Companies (“LLCs”)
- Corporations (“C” corporations)
- Closely held, private business entities
- Private Funds (Private Equity and Private Real Estate Funds using Regulation D as an exemption)
- Hedge Funds
- Co-ownership or fractional ownership of real estate related assets such as Tenants-In-Common investment properties (“TICs”) or Delaware Statutory Trusts (“DSTs”)
- Unlisted Business Development Companies (“BDCs”)
Non-Permissible Alternative Investments
While there are not many, certain types of non-traditional or alternative investments are specifically precluded from IRAs and 401(k) Plans. The short list of non-permissible assets includes:
- Collectibles (art, coins, automobiles)
- Life insurance contracts
- Shares of stock in “S” corporations
Alternative Investments belong to a financial eco-system populated by continually creative individuals and institutions. For this reason, it is difficult for investors and advisors to contemplate and understand the entire array of structures, risks and rewards. Exeter is consultative, and PROTECTive. We like to explore options with clients and their advisors, and we like to keep retirement plans custodied with us in compliance with the applicable laws, regulations and rulings. We will take the time needed to satisfy both sides of this knowledge equation.
And – we pick up the phone!