Last Updated on July 27, 2023 by Ben
For most people, finding the best self-directed IRA seems daunting. When looking for one, it may give someone a skeptical feeling about companies that were too good to be true.
To help you find the best IRA company, read this Madison Trust Company review. It provides information to help you make a better decision.
What is Madison Trust Company – Overview
Madison Trust Company is a self-directed IRA provider based in Sioux Falls, South Dakota, that offers a wide array of assets clients can select. It’s great news for people who want to diversify and grow their wealth.
Mervyn Klein, a current board member, and Daniel Gleich, its CEO, established this company in 2009.
They discovered that acquiring and maintaining a self-directed IRA was long and winding. As a result, they committed themselves to streamline self-directed IRAs’ acquisition and management.
When their company — initially called Broad Financial — grew, they hired Brian Finklestein. He has 25 years of industry service and experience.
Eventually, they established the South Dakota Trust Company in 2012, whose company name later became Madison Trust Company.
It is known among self-directed IRA companies for its dedication to its clientele. Their goals involve:
- Providing ample knowledge to their clientele.
- Offering reasonable pricing.
- Streamlining the entire investment and management process.
Each company has its ups and downs, and Madison Trust is no exception. This section will detail some enticing pros and a few cons for potential investors’ consideration.
- They allow account owners to invest in various options, including precious metals like gold and silver, real estate holdings, promissory notes, startup and crowdfunds, and other options.
- They provide exceptional support from specialists with training from cyber security information sharing partnerships (CISP). Clients can reach them easily online, via cell, and in person.
- The customer can decide which third-party seller to buy gold from, and to acquire real estate, among other assets, so long as the seller is a qualified third party.
- Madison Trust has had glowing reviews since 2014 and continues to satisfy consumer needs with simplified IRA processes. This information comes from ratings and testimonies from actual consumers of their products.
- Madison Trust Company is transparent with its costs and pricing. Moreover, the company reassures the clientele about unfair increases and sudden bills. Some IRA providers don’t follow the same standard.
- They have isolated cases of bad reviews that might raise some concerns for investors. People want a near-perfect reputation if they invest large amounts of cash.
- Searching for this organization online leads to fewer results compared to its competitors. Some might want to invest with a more popular and experienced IRA provider.
- The many different costs might be confusing to some. Madison Trust Company requires payment for almost all interactions, unlike other competitors.
Madison Trust Company Customer Reviews
Madison Trust boasts near-perfect reviews on Google Business and the Better Business Bureau. An A+ rating is a great sign that the company is secure, as customers are delighted with their products and services.
Their nearly spotless record on the site above also shows speedy support and conflict resolution skills by the company. If clients had any complaints, they dealt with them swiftly and efficiently.
It’s worth considering since some companies have bad reviews and complaints after some time on the Better Business Bureau site.
People can contact the company through their site, email, physical mail, and contact information. Their employees often provide helpful answers to clients’ concerns.
Moreover, they have over 1,500 testimonies from satisfied holders. Madison Trust isn’t a stranger to significant sums, either. They have over USD 4,000,000,000 assets in custody from over 15,000 clients in the United States.
They also present almost full marks from sites like Facebook, Yelp, and ShopperApproved.
Another edge this company has is its CISP-trained employees, who can answer queries precisely and efficiently. It makes the IRA experience much more professional and worthwhile.
However, there are some negative comments here and there. After all, no organization is perfect. Most isolated cases revolve around poor support and untimely feedback.
Overall, this company is secure and reliable. They can help people greatly diversify their portfolios with adequate consumer guidance and after-sales care.
How Does It Work?
Madison Trust Company offers customers the ability to diversify their assets through a self-directed IRA. These are accounts where people can contribute funds, and they grow through varied investments.
The business provides a simple and guided process to open a new account. The first step involves research. Individuals must first decide what type of self-directed IRA they want to open with the company.
After all, each retirement account option from Madison Trust has its unique benefits.
Then investors can contact the company through their website or contact details. There’s a knowledgeable support team member that can answer customer queries and concerns throughout the entire transaction.
Afterward, clients can open their chosen self-directed IRA with Madison Trust. There’s also an online form available to open the IRA. However, they need to transfer money to finance their new account.
They may do so by rolling over an existing retirement account. Some prefer rolling over 401k accounts from their employer, while some fund through savings. The organization allows these options as long as the other provider approves the transfer.
Lastly, an IRA custodian can acquire a client’s preferred asset through the funds in the account. It is an option that lets clientele invest in the choice that makes the most sense for their life and needs.
However, it’s crucial to remember that these custodians are non-discretionary and passive. They can’t offer legal advice or recommendations. It is why research and due diligence is vital before investing in assets, as there is a possibility that it might not suit one’s needs.
Products and Services Offered
Madison Trust Company offers several products and services, including traditional and ROTH self-directed IRAs, Savings Incentive Match Plans, and Simplified Employee Pensions for organizations.
They also provide document custody service, Gold IRA, and Crowdfunding IRA. Document custody allows businesses to increase security, conservation, and information through the solutions offered by Madison Trust.
On its website, the organization also highlights its Directed Trust service. Here, a trustee can hold assets or funds for a beneficiary. What makes this different, though, is that Madison Trust lets account holders manage and distribute the funds.
They also offer checkbook control for self-directed IRA LLC or self-directed individual retirement for a limited liability company. This option lets people write checks from the funds in their IRA. It also makes it easier for one to invest in alternative assets.
Some self-directed IRA companies provide clients with all the information they need to know before, during, and after opening a retirement account.
Their website displays helpful how-to flowcharts people can refer to for various IRA-related activities. There’s information about the following:
- How to sell assets from the IRA account,
- Investing in an LLC or a private placement,
- Issuing a loan with the account, and
- How to acquire precious metals like gold from an IRA account.
Madison Trust Company Investing Options
Most self-directed IRA companies offer precious metals, real estate, and private placements. Madison Trust Company goes beyond that and gives options for crowdfunding and startups and promissory notes.
The reasoning behind the wide selection involves giving people opportunities to get an investment that makes sense for their needs.
However, having so many options may feel overwhelming for most. Let’s review some popular investment options that they offer.
Thanks to its high growth opportunity and stable returns, it’s a popular purchase among account holders.They pay for real estate shares (from qualified third parties) from their funds and reap the returns in the future. Generally, a friend or family member does not qualify as a third-party seller.
A self-directed IRA with Madison Trust can fund companies or individuals who need money. Like a regular loan, it earns from an interest rate. Loan takers pay at a set amount and time according to prior arrangements.
It is an option involving a non-market asset: real estate ventures, private equity funds, or startups are some examples. Some invest in private placements due to their availability, as standard IRAs don’t offer this option.
Many people preparing for retirement prefer precious metals like gold and silver due to their stability. They invest in gold to hedge against inflation because it has remained valuable throughout history. Gold also diversified investment portfolios well.
This option allows people to fund a struggling company, community, or group. It’s a great way to help the local industry. Additionally, holders can get potentially high returns as well.
Madison Trust Company Fees
Madison Trust Company services come at a lower cost than Strata Trust Company and other competitors. They have several fees people should know:
- An annual custodial fee of USD 380
- USD 50 to USD 70 quarterly maintenance costs
- Account application fees amounting to USD 50 in total
- Precious Metal Storage fees about USD 100 yearly
- Other Miscellaneous fees
Most companies offer either of the two models: Asset-Based or Flat. The former calculates prices based on the account’s current assets, while the latter determines prices at a fixed rate.
Most of the time, a flat model provides more affordable options for investors. However, it’s still essential for clientele to review the payment and price model before investing in an IRA.
The Asset-Based Pricing Model
In layperson’s terms, asset-based models determine the cost of taking on risk to earn a reward. These calculate the predicted return of other financial securities.
It’s helpful for companies like Madison Trust to measure systematic risk and the expected return rate in self-directed IRAs.
Here’s how to calculate asset-based prices and fees:
A business can review the risk-free rate, add it to the investment risk, and multiply it by the expected market return. Afterward, subtract the answer from the risk-free rate. (Risk-Free Rate + Risk of the Investment x Projected Market Return – Risk-free rate)
Usually, investors avoid pricing like this, especially if they have many investments and considerable assets in self-directed IRAs.
For example, an IRA with USD 250,000 might cost USD 660 to open and maintain. If it grows in value, for instance, USD 400,000, the fee rises to USD 1,040.
The Flat Pricing Model
This model charges a fixed rate for a specific product or service. Unlike the asset-based model, interested parties can know how much to prepare should they invest in Madison Trust Company.
Luckily, Madison Trust offers a flat model for its investors. It also has one of the lowest fees among its competitors. They only charge USD 100 per quarter, or about USD 400 annually, regardless of account values.
It is a no-nonsense approach done by Madison Trust so that investors can save as many assets as possible for retirement. Reviewing the example earlier, an investment worth USD 250,000 or USD 400,000 pays USD 100 quarterly or USD 400 annually.
However, some accounts might save more with the asset-based model. Madison Trust caters to these cases with its self-directed checkbook IRA option.
Madison Trust Company’s Fee Schedule
Madison Trust provides a helpful fee schedule on its website. First, people provide a one-time setup fee worth USD 50.
Don’t forget that they also require a USD 500 minimum account balance. They can use this to pay dues when there’s no other option.
Afterward, they must observe quarterly costs and transaction and service fees. However, most payments do not apply to IRA LLCs and directed trusts.
The custodial fee requires USD 100 every quarter, and each additional investment incurs an additional custodial fee of USD 25 quarterly. If one adds an asset aside from their initial investment to their account, it incurs USD 125 every quarter.
Let’s review some more listings in Madison Trust’s fee schedule.
- Investment fee. Customers pay USD 50 every time Madison Trust acquires an investment on behalf of the client’s self-directed IRA.
- Cash disbursement fee. The clientele must provide USD 30 for distributions, transfers to other IRAs, and returns.
- Re-registration of investment fee. When an asset enters or exits a client’s IRA, they must add USD 50 to register the investment.
- Sale of asset fee. Madison Trust charges its clientele USD 50 to USD 150 for funds sold on behalf of the client.
- Precious metals storage fee. Delaware depository requires at least USD 100 depending on the amount of gold or silver purchased by the client.
Madison Trust Company service fees include:
- USD 50 for expedited processing
- USD 50 for overnight delivery
- USD 25 for incoming/outgoing Wire
- USD 50 for Roth conversion/ recharacterization
- USD 25 for returned check/debit card
- USD 50 to correct 1099 R/5498
- USD 25 for precious metals shipping
- USD 100 an hour for research
- USD 25 each month for late custodial fee payments
Augusta Precious Metals
Unlike Madison Trust, with many options, Augusta Precious Metals only offers precious metals self-directed IRAs. However, the latter company is one of the oldest and best providers of gold and silver as investments in IRAs.
- They buy back clients’ gold and silver at a competitive rate.
- Augusta partners with Equity Trust and Delaware Depository.
- Augusta Precious Metals shows transparent costs and fee schedules.
- The company offers a streamlined and guided process for opening an IRA.
- Clientele need a high amount of investment to open an account with Augusta.
- Unlike its competitors, Augusta Precious metals only offer gold and silver.
American Hartford Gold
American Harford Gold exclusively provides IRAs that clients fund with silver, gold, and platinum. This company’s defining feature is donating to local and national charities. They have a hands-on approach to opening, maintaining, and closing the IRA.
- They offer a free IRA rollover and complimentary storage and insurance for assets.
- They often have free shipping and significant discounts on their precious metals.
- They have affordable rates and minimum investments
- Price Match Guarantee assures lower prices for separate purchases of platinum, gold, and silver.
- They only serve clientele in the United States.
- American Hartford Gold requires high storage and maintenance costs.
With over a decade in business, Goldco has more experience than Madison Trust. They offer gold, silver, palladium, and platinum in self-directed IRAs. Goldco focuses on customer service and education for portfolio diversification.
- They have celebrity endorsements and years of experience to back up their good reputation.
- They have a BuyBack Guarantee for clients who liquidate their assets.
- Goldco offers one of the widest selections of precious metals IRAs.
- They give free information kits and significant discounts on physical metals.
- Goldco requires high account opening and purchase minimums.
- They need to be more transparent about prices and fees.
If Madison Trust has CISP-trained specialists, Birch Gold Group has professionals with experience from IBM, Dun & Bradstreet, and other companies. It is an exclusive precious metal IRA provider with palladium, platinum, silver, and gold options.
- Birch Gold Group allows non-IRA holders to purchase precious metals.
- They offer lower investment rates
- They provide discounts and promotions on purchases outside an IRA.
- Birch Gold Group is very transparent with pricing and costs.
- Their IRA custodian isn’t easily accessible.
- Clients need to purchase metals through an account representative.
Final Thought – Madison Trust Company Reviews
IRAs often need clarification. Terms like “a new window,” “custodian,” and so on might not make sense to most. However, there are companies that value consumer education and guidance.
Madison Trust is an excellent choice for people who want a straightforward, guided, self-directed IRA experience with various investment options. They give great after-sales support, have numerous assets to invest in, and have glowing reviews.
Hopefully, this Madison Trust Company review helped you learn more.