Direct Custody is where an IRA custodian creates a Self-Directed IRA and helps purchase an asset for you that might be difficult to acquire on the NYSE, Nasdaq, or a brokerage like Fidelity and Charles Schwab. Investment documents are presented by the investor and the investment issuer they are looking to work with. All investments be approved by our custody partner, a trust company.
Stocks and bond brokerages like Fidelity and Charles Schwab will sometimes approve alternative investments, but usually not after a lengthy review process (six months), and sometimes restricting these investments to specific clients.
How does Direct Custody allow me to “bring my own deal”
Rocket Dollar works with a trust company as a custodian. This custodian can approve alternative investments of all kinds (unless it is on the small list of prohibited investments.)
With a Direct Custody Rocket Dollar IRA, all investments must be reviewed by the custodian to minimize the potential risk of making a prohibited transaction(s).
Direct Custody Overview
- Easier for alternative investing beginners or veterans looking to avoid complications.
- Initial setup is quicker than the checkbook IRA account.
- Rocket Dollar and the trust company can collaborate more with the investment issuer if you provide permission to do so, allowing you to stay out of the process besides authorizations.
- A clear process for one investment or with common deal paperwork. To review common investments in a direct custody account, like private placements, limited partnerships, real estate funds, pre-IPO stock, and secured or unsecured notes.
- Hands-on custodian help for when securities go public.
- Basic check for prohibited transactions and prohibited investments before you are allowed to invest.
- All investments must be reviewed by the custodian. Typical everyday investments should not be a problem. Deal review typically takes 48-72 hours, and funds and wired immediately after the deal review concludes.
- Because transactions and bill payments must be reviewed, this can slow down operations for high transaction volume assets, like individually managed real estate properties. (Examples are: high urgency payments to contractors, emergency payments to plumbers, many different rent checks coming in and being cashed, which need to be turned around to other expenditures quickly, and many private loans being issued and returned all at the same time)
- Rocket Dollar’s current offering direct custody product offering cannot invest directly into cryptocurrency. You can inquire about an affiliate of Rocket Dollar.
The Direct Custody IRA is available in Silver for $360 and $15 a month, or Gold expedited white glove service, for $600 and $30 a month.