Advanta IRA Review

Advanta IRA Table
Advanta IRA Table - by, April 1, 2011
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Advanta IRA Table
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Review Summary :

Advanta IRA offers Checkbook control and the opportunity to invest in cryptocurrencies to go along with a robust education program and a staff that includes certified financial planners and legal experts. Take a look at some of the pros and cons of choosing Advanta IRA.

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Pros:

  • Certified Financial Planners, lawyers, and experts on staff
  • Great approach to client education
  • Cryptocurrency investing available

Cons:

  • No live chat function available
  • Very few customer reviews
Quick Facts about Advanta IRA
Year Founded:2003
Location:Largo, Florida
Annual Fees:$295 per asset. Max $1,850
Offers 401(k)?:Yes
Offers Roth IRA?:Yes
Crypto Offered?:Yes
Reviewed By:Jack Choros
Published On:April 3, 2020
Last Modified:May 25, 2020
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Advanta IRA is actually slightly different from other IRA providers. It actually includes a group of self-directed IRA administrators under one umbrella. They provide services to investors looking to plan out their retirement across America. These different entities stay separate but work and market themselves as one. The goal in doing this is to give investors superior customer support and give them access to lots of flexible investing options that will allow every client to succeed in planning their long-term financial future.

Like many other IRA providers, Advanta submits all documentation to the IRS willingly and on behalf of its client base to ensure that both the company and the individuals using their investment products and services remain compliant. The aim of the game at Advanta is to ensure that investors can focus on finding for themselves the best investments possible, nothing else.

In this review we’ll cover the pros and cons of using Advanta over other IRA providers, like Charles Schwab, and discuss in detail more about the services and products Advanta offers.

The Advanta IRA Management Team

Jack Callahan, Founder, Advanta IRA

Jack Callahan, Founder, Advanta IRA

Jack Callahan is the founder of Advanta IRA. He founded the company in 2003. Callahan holds degrees and finance and graduated from law school at the University of Florida. He’s built Advanta into a company that holds more than $1.3 billion in assets.

Callahan is supported by 22 other employees at Advanta who specialize in servicing accounts, developing new business and running the company’s day-to-day operations. Overall the company appears to be growing quickly and consistently throughout its history.

 

Investments Allowed in an Advanta IRA

One of the biggest strengths of choosing to bring one’s IRA to Advanta is the fact that the company offers a wide range of potential investments to choose from. Some IRA providers we review here will offer cryptocurrency, real estate and other types of private equity is investments, others won’t. Advanta offers the following types of investment opportunities:

  • Cryptocurrency
  • Private Equity
  • Real Estate
  • Private mortgages and notes
  • Foreign Currency
  • Futures Contracts and more…

Advanta also offers its customer base all sorts of plans that can be self-directed. That includes Traditional, Roth, and SIMPLE IRAs. The company also manages health spending accounts, education savings accounts and 401(k) plans.

Fees and Commissions

Advanta shines when it comes to fees and commissions. Investing with the company is definitely more affordable than most other IRA providers. They charge a simple account set up fee of $50 and an account termination fee of 0.005% of the account value should an investor choose to leave the company. That 0.005% fee only reaches a maximum fee of $250. Investors can’t be charged more than that. Fees that low are a pretty good deal for clients.

For accounts that require an annual fee, the cap at Advanta is just $300 per year. That’s not bad if and investors looking to manage precious metals. Nearly all IRA providers allowing precious metals inside of IRA accounts have to cover expenses related to custodianship and providing bondable security for assets. That’s why these costs come into play, but again the $300 fee is more than reasonable as all competitors will charge the investor something and in many cases, much more than that $300.

With other self-directed IRA accounts, Advanta only accrues fees related to covering the cost of record keeping and providing information to the IRS. Again, this is a simple matter of administrative cost and not something uncommon among IRA competitors. Advanta. All fees are based on the cost of administering an account. There are no hidden charges or commissions at Advanta.

See the table below for Advanta IRA’s full fee schedule:

Account ValueAnnual Asset Fee
$0-$14,999$195
$15,000-$29,999$260
$30,000-$44,999$325
$45,000-$59,999$390
$60,000-$89,999$450
$90,000-$124,999$525
$125,000-$249,999$650
$250,000-$499,000$775
$500,000-$749,999$1,500
$750,000 and up$1,850

IRA Rollover Rules

Rolling over a 401(k) to an IRA is typically done when the investment wants more control over their investing decisions or they want to avoid certain restrictions placed on their choices by the employer’s 401(k) plan. Sometimes, they may not have a choice. If they get a new job or get let go by an employer, it doesn’t make sense to stay put.

So what are the upsides and downsides of rolling over an IRA? The upside is that a self-directed IRA comes with many more investing options. Your employer likely isn’t going to help you buy into real estate or capitalize off of providing money for a mortgage or loan. With an IRA, investing in those kinds of vehicles is much easier.

The main downside to leaving behind a 401(k) is that the investor is no longer getting matching contributions from the employer. They’re officially flying solo as soon as they leave. They also can’t take out a loan or other credit facility against an IRA, the way they can with a 401(k). The latter difference may not be a big deal to most investors, but getting access to credit isn’t always easy, and losing a safety net to gain independence in investing choices is a consideration that shouldn’t be overlooked.

IRA Transfer Rules

The IRS oversees IRA Rollover and Transfer rules. Just like any other IRA provider, Advanta does allow transfers. The difference between a transfer and a rollover is that a rollover is handled purely by administrators while a transfer allows the investor to take out assets from one provider, convert them to cash or another desirable asset like gold and decide whether or not to deposit the same amount of desired assets with the new provider or not. In short, a transfer allows for reallocation where a transfer does not.

The Pros of Choosing Advanta for Your IRA

As mentioned at the very beginning of this review, Advanta is a company that brings together a network of administrators working together under one umbrella. This means that a matter what the investor needs as far as the products and services they demand access to, they have it. Advanta is really good at streamlining their processes and making everything easier.

This also means that Advanta can offer excellent customer service options to clients. Every offering they have has a product expert to go with it, because all of the service providers working together under the Advanta umbrella still registers separate business licenses and operate as independent entities. By the very nature of the way Advanta’s business processes are structured, there surely must be an investing experts that can cover every aspect of a client’s questions. They offer everyone access to account managers that are dedicated to their accounts.

Investing Variety

As mentioned previously, Advanta offers many different types of IRA accounts and their one of the few self-directed IRA providers that allow clients to capitalize off of loans and borrowing and private equity deals. That’s not something investors can find anywhere they look. It’s a specialized service. Although those kinds of investments are not for everybody, it’s always nice to have more options. Giving clients options is one of the areas in which Advanta really excels.

Positive Customer Reviews

Take a look at any customer review website related to self-directed IRAs. It’ll be very difficult to find one that offers any negative reviews on Advanta. These days most IRA providers know that their clients are going to take their own retirement planning very seriously. Especially those who want everything to be self-directed. By its very nature, opening a self-directed IRA means the investor is likely an active participant in their investing strategy.

Education Oriented

One important thing to consider when on boarding as an investor with a self-directed IRA provider is that having access to proper education materials can help prepare investors for their journey. Advanta does this really well. Their website offers access to many different kinds of material including videos and documentation.

The Cons of Choosing Advanta for a Self-Directed IRA

One thing that is missing from Advanta’s website is a live chat option. It’s not so easy to get quick questions answered. It would be nice if they made it more accessible. While Advanta does offer a section for forms related to account openings and selecting different investing types, the reality is the average person can stop benefit from some person-to-person assistance.

Another strike against Advanta’s that as much as most if not all of the customer reviews related to the provider, the company actually has very few of them. Advanta has been around for 17 years. That’s long enough to develop an extensive track record.

That said, the company is a smaller provider with $1.3 billion in assets under management. That may sound like a lot, but other competitors and discount brokerages like Charles Schwab for instance manage multiple trillions of dollars’ worth of customer funds, much more than Advanta.

Either way consider Advanta a reliable self-directed IRA provided and still has a little bit of room for improvement.

Should Investors Open an Advanta IRA?

Although Advanta doesn’t have very many customer reviews, what it does have is a lot of good ones. The organization makes investing in real estate very easy and their checkbook IRA allows investors to be compliant with the IRS while empowering their IRA accounts with the abilities of a checkbook and the protections that a Limited Liability Corporation offers.

Still not sold on Advanta? For another look at the best options on the market for a self-directed IRA, check out our list of the Top IRA Providers.

 

Advanta IRA Table
Advanta IRA Table - by, April 1, 2011
4/ 5stars
on
Advanta IRA Table
  • Editor Rating
  • Very Good
  • 0/5 Avg. User Rating
  • 0 No reviews yet!
Review Summary :

Advanta IRA offers Checkbook control and the opportunity to invest in cryptocurrencies to go along with a robust education program and a staff that includes certified financial planners and legal experts. Take a look at some of the pros and cons of choosing Advanta IRA.

Have you purchased products from Advanta IRA Table? Leave a review!

Leave your rating

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