Self-directed IRA, The Steps to Financial Security

Last weeks blog was designed to give our readers an introductory look at the concept of a self-directed IRA. As a result, I have received several responses asking for the steps involved in opening an IRA account with Pensco or TD Ameritrade. This weeks blog will focus on Pensco Trust.

Considerations when opening a self-directed IRA with Pensco Trust


1. Speak with your current IRA manager. This process will be much smoother if he/she is informed of your intentions.


2. Direct your current IRA manager to convert the funds you intend to transfer into cash. A cash transfer is the most expeditious means of funding your new self-directed IRA with Pensco Trust.


3. 401K funds may be self-directed, however, they must be idle. For example, if you have a 401K plan with a previous employer these funds may be used to open your Pensco Trust IRA.


4. Some 401K plans allow for employees to self-direct their IRA while still employed. However, this is rare and you must check the rules of your plan. It is best to speak with the 401K administrator directly.


5. At this time, we are only able to accept funds for Garrow Inaugural via Pensco Trust. However, Garrow Niblick LLC is in the middle of the approval process. For more information, please consult your Garrow Equity Group representative.


6. Your friends at Garrow Equity Group will assist you with all the necessary paperwork. However, if you would like to download the forms you may do so at www.penscotrust.com


7. An account with Pensco Trust must have $100.00 in it at all times. Therefore, in the case of an investment with Garrow Equity Group, you will open your account with at least $100,100.00.


8. There are fees associated with opening and maintaining a self-directed IRA account with Pensco Trust. A new account fee of $50.00 will be assessed at the time the account is opened. The yearly account maintenance fee is based on the amount in the account. For example, $100,100.00 will cost approximately $450.00 per year.


9. All fees may be paid either by credit card or taken directly from the account itself. If you elect to pay the fees from the IRA account, you will need to increase the amount of the initial transfer.


10. The yearly maintenance fee will be divided into quarterly increments and charged accordingly.


11. Due to the fact that Pensco Trust will be the custodian of your IRA, all the “Garrow” documents will be written in a manner that signifies this. Your signature will be stating that you have “read and approve” the documents. A Pensco Trust representative will sign as well.


I hope this provides you with a better understanding of what is involved in opening a self-directed IRA with Pensco Trust. If you have any other questions, please direct them to Alan Ford at alan@garrowequity.com, Russ Garrow at russ@garrowequity.com or Scott Rayburn at scott@garrowequity.com. Garrow Equity Group is a Private Equity Firm located in Clark County, Washington. We are pleased to provide investors with several investment opportunities which includes the ability to assist investors with self-direct IRA’s, via Pensco Trust Company and TD Ameritrade.

In 2010 Take Control of your IRA

According to the dictionary app I recently downloaded to my iphone, the word “control” (noun) means “power to direct or determine”. At Garrow Equity Group, located in Vancouver, Washington, we recognize the desire most individuals have to control their lives, especially their financial future. We are also keenly aware that the recent financial crisis has eroded confidence in the traditional markets which has heightened this need to take control.

With that in mind, Garrow Equity Group has positioned itself to be a key player in the process of rebuilding. Currently we are investing capital, from our funds, into the communities of Vancouver, Washington and Portland, Oregon. Part of our goal is to act as a significant cog in the wheel of community redevelopment. We also take seriously the notion that good solid investment opportunities provide our investors with a method by which they may regain their sense of financial security. Hence the incorporation of a self-directed IRA investment option.

Utilizing a self-directed IRA, is a means by which an investor can take direct control of retirement funds. Unlike the traditional methods which are market based, and run by managers of managers, a self-directed IRA allows the investor to place funds in a product and a known group of people that they feel passionate about and trust. One of our motto’s is, why not invest in something you believe in, people you trust and something you can see, touch, smell and even taste.(although I don’t recommend tasting)

The most common self-directed IRA investment is real estate. However, IRA’s are also directed to start-up companies, herds of cattle, retired train engines, working ranches and private equity firms such as Garrow Equity Group. Each of these, have stirred individual passion, resulting in a decision to take control and invest. When IRA’s are directed to Garrow Equity Group, they are funneled into a particular fund, of which we currently have two. The first, Garrow Inaugural LLC offers a longer term investment of 36-60 months with a higher projected rate of return. The second, Garrow Niblick LLC, is a shorter term opportunity that currently has a two year window. The with projected rate of return is lower than Inaugural however, this fund has flexible investor egress provisions.

Alan Ford, our resident expert in self-directed IRA’s, has been instrumental in initiating and solidifying a relationship with Pensco Trust Company and TD Ameritrade, our chosen IRA custodians. It is through these relationship that we are able to facilitate investors taking control of their retirement and investing in our funds. If you have any questions, please contact Alan at alan@garrowequity.com , Russ Garrow at russ@garrowequity.com or Scott Rayburn at scott@garrowequity.com