As an investor relying on self-directed IRAs one of the most expensive parts of this investment is the custodian who has to oversee everything.
Most of these custodians are going to charge you a yearly fee as well as additional fees each and every time that a transaction is made.
These fees can quickly transform a good investment into a poor one if you aren't careful.
Learn a few easy ways to reduce or eliminate your custodian fees and give yourself a bit of breathing room in the process.
One of the easiest ways to avoid unnecessary custodian fees or above-average fees is to be careful about the custodian that you decide to use in the first place.
Let the custodian that you are considering know that you want documentation concerning all the possible fees that will be charged so that you can go over them before making your decision.
Do this for many different custodians before deciding who to work with and you will have avoided paying a lot of money in higher fees by simply picking the cheaper option.
Many people who deal with self-directed IRAs have more than one account that they work through.
While it may make things easier to keep track of in terms of your investments, having multiple accounts also opens you up to more fees in many instances.
Sit down and look at the fees that you pay from all of your different accounts.
Now figure out how much it would cost you if you pooled all of your money into one of the accounts you have and closed the rest.
In most instances you will be able to find a way to save money on fees by putting all of your money in one area and this is a great idea.
Sometimes all you have to do is ask.
There are custodians out there who charge less than others.
When dealing with a custodian simply ask them if they will drop some of your fees.
Most of the times they are not gone to be willing to make this move right away because that's throwing money away.
If your custodian resists your request let him know that you know of another option that charges fewer fees and that you are going to make the switch if your fees aren't adjusted.
Most of the times this tactic will get your custodian to at least budge on the fees if not make a major adjustment for you.
These steps probably seem pretty simplistic now that you know about them, but most investors don't even consider them.
They are so eager to be making exciting new investments that they plunge right in and start paying more fees to custodians than they need to be.
Take your time and make sure you are making the best decision when you sign up with a new custodian.