Obtaining High-Net-Worth Clients through tax-advantaged alternative investment programs.
Part 3.- Presenting SD-IRA's to prospects and clients: questions to
ask clients and prospects; what to present to clients and prospects
A matter of when
clients will have alternative investment ideas - Chances are, at some
point, a
client will or has already come to you with an alternative investment
idea. Or maybe you come across an alternative investment—via a wholesaler, another
client or word of mouth—that fits into your strategy for a client. However the
opportunity arises, having a base knowledge of self-directed IRAs (SDIRA) and a
good SDIRA provider will help you act on these opportunities, which will then
help you attract and retain clients.
In this article, we’ll briefly look at how you can use a
base knowledge of SDIRAs and a good SDIRA provider to put yourself in a
position to offer alternative assets with confidence.
Be prepared before
being approached by clients/prospects - First, when clients or prospects
come to you and express interest in alternative assets, you can be confident
saying, “Yes, we can handle alternative assets in your tax advantaged plan. Tell me the details of what you have in
mind…” There are some prohibitions on asset types and
some persons that could disqualify an asset.
With an SDIRA provider, you can either familiarize yourself with those
rules or simply contact us for a quick answer.
Or, if it is more in keeping with your business model, you could have a
conference call with us and the client.
And, of course, the client could call us directly to get the desired
information. We can be as visible or
invisible as you would like, but the idea is that you can say yes to your
clients and prospective clients.
“When investors come to us with an idea to invest their IRAs
in real estate or precious metals or another alternative asset, they typically
carry with them some misinformation and have some questions prepared,” New
Direction IRA CEO Bill Humphrey said.
“That’s why we train our staff extensively,” Humphrey added.
“Having an expert SDIRA provider can be an ally to advisors by offering
detailed account knowledge—about the rules and processes of alternative asset
investment with IRAs—that allows you to serve you client better.”
Be ready to act on
your own alternative investment ideas – In the other likely scenario, when
you hear about an alternative investment that you would like to utilize in your
clients’ strategies, you have the ability to engage their tax advantaged funds
as well as their personal money. With an SDIRA company as support, you have
quick access to account setup and asset acquisition. The days of convoluted paperwork, slow
transactions and cloudy rules is over. SDIRA providers, like New Direction IRA
(NDIRA), have developed technology and support staff that makes it easier than
ever to invest your clients’ IRAs in alternative assets.
Benefit from new
technology and processes – For example, when it may have taken a week to
open an SDIRA account in the past, NDIRA can, in most cases, do it in one
business day via an online application. Transactions are quicker and some asset
acquisitions can be handled online, so when a time-sensitive investment
opportunity arises, you can act on it and be sure that it is done correctly.
Example of working
with a SDIRA provider – Indeed, the addition of an SDIRA provider will
support and complement your existing client service. A binding agreement or
commitment with an SDIRA provider is not required to use them as your support. Information
sharing can be set up at your request.
Have asset information transmitted to your existing online client
interface and/or view your clients’ NDIRA accounts via a single login. And, of course, if you are receiving fees
from NDIRA accounts, that process is easy as well.
For a free information on using
Self-Directed IRA plans for your prospects and clients, contact Clay Malcolm at
New Direction IRA. You can reach Clay by phone at 877-742-1270 email him
at cmalcolm@ndira.com You also can go to New Direction IRA's website, at
www.NewDirectionIRA.com.
