Break the Bonds of Conventional Investing

The Investment Trust

Assert Control of Your Retirement Account

Virtually every commercial financial institution will act as custodian of your funds and help you set up a “self-directed” retirement account, such as an IRA, a Roth, a 401K, or a corporate pension. But you can only invest in the limited menu of products offered by that institution. If a promising investment opportunity were presented off their menu – such as a classic car, trust deed or artwork, they won’t let you use any of the funds in that account to make the investment.

A few custodians, however — Pensco, Equity Trust, and Lincoln Trust among them — allow you to truly direct your investments. With them, you can pursue an investment in a friend’s promising startup. But to do so, you need the right financial vehicle to preserve your tax benefits. This can be an LLC (Limited Liability Company) or a trust.

Simple, Private, and Less Hassle than an LLC

An LLC is subject to the laws, regulations, and fees of the state in which it is chartered. If you wanted to do business out of state — or in multiple states — you may well be required to comply with the fees and regulations of several states simultaneously. This may require an attorney with legal expertise across several jurisdictions, or at least plenty of paperwork for you. Expensive and complicated.

If you use a trust, the paperwork is simple and your private investment trust easily works in any state in the U.S. without permission from any secretary of state.

The Process of Setting Up an Investment Trust

The process for setting up an investment trust takes a few steps but it is straightforward.

First, you open a true self-directed retirment fund account with Pensco, Equity Trust, or Lincoln Trust, etc. Direct your current brokerage firm to transfer all or a portion of your IRA, Roth or 401K funds to that new account. Pensco, Equity Trust, or Lincoln Trust is now the custodian of this new fund account. If you follow the rules, this is non-taxable.

Secondly, you create an Investment Trust. Your retirement account is the beneficiary. You appoint a trusted financial friend or relative to act as your independent trustee.

Thirdly, just like selecting a stock or bond investment from the preset menu of offerings in your managed retirement account, you direct the custodian (Pensco, etc.) of your new self-directed retirement account to buy shares from the trustee of your investment trust. Your trustee opens a bank account with these funds.

Next and lastly, direct your trustee to use funds from the trust’s bank account (any local or national bank you choose) to purchase what you’ve selected – whether a trust deed, a classic car, artwork, or a friend’s small business. You are ultimate director of your investment account.

Easy to Recycle Investments

At some point you may decide to liquidate that investment. You instruct the trustee to sell the trust deed, the classic car, or the artwork, etc. Proceeds from the investment sale are deposited back into the trust bank account. You’re ready to do it again.

Flexibility, Freedom and Tax Benefits

The great benefit of this arrangement is that you still have a retirement account, but one that gives you tremendous flexibility and freedom to invest in anything you like, with no paperwork, no state-by-state legal requirements, and no fees, while still retaining the tax benefits of a retirement account.

Tap into the Unique Power of Trusts

To tap into the unique power of trusts for ensuring a secure financial future you need an expert, and we are the experts across a broad range of infinitely valuable private trusts. TrustArte is here to personally assist you. We’re here to educate you. We’re here to give you the financial privacy you not only deserve, but need.

Request a Personal Consultation

Our Open Philosophy Trust Arte will openly engage with other professional advisors such as tax specialists, attorneys and accountants to develop the most effective solutions for our clients. Should their services be of value to you, our trust professionals will work with your other advisors. This “open architecture” philosophy, which is reflected throughout our organization, allows us to build closer relationships with our clients and offer them the best solutions.