Preferred Trust Company IRA Review

Preferred Trust Company
Preferred Trust Company - by, April 1, 2011
4/ 5stars
on
Preferred Trust Company
  • Editor Rating
  • Very Good
  • 1.5/5 Avg. User Rating
  • 1 Reviews
Review Summary :

Preferred Trust Company has been in business since 2007, helping clients retire early ever since. Take a look at some of the investing in account options available at the company. Note that there plenty of LLC options available.

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Pros:

  • Many different account and investment types
  • LLC options
  • Solid executive team

Cons:

  • Negative reviews on Google Profile
  • Low brand presence
  • High starting fees
Quick Facts about Preferred Trust Company
Year Founded:2007
Location:Las Vegas, Nevada
Annual Fees:$300
Offers 401(k)?:Yes
Offers Roth IRA?:Yes
Crypto Offered?:No
Reviewed By:Jack Choros
Published On:April 10, 2020
Last Modified:June 2, 2020
Have you purchased products from Preferred Trust Company? Leave a review!
Glad to take your money and invest it...but
They were efficient in taking my IRA funds and investing them, but just try to speak to Ashley at the transfer desk and get your IRA transferred out to another IRA and the fireworks begin! Talk about a hassle. THEY DO NOT TAKE FAX REQUESTS?????? Is this not the 21st century????
November 23, 2021, 1:00 pm

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Preferred Trust Company is in its 13th year of doing business having launched in 2007. The IRA provider is one of the few that we’ve reviewed that features a woman as the CEO. We will get to know her in the section below.

In general when going through this review, readers will notice that Preferred Trust Company ranks up at the top as far as customer service and what they have to offer to investors. That’s because we’ve taken the liberty of parsing through all the pros and cons of the company. Understanding all their account types they have to offer, and understanding all of the investment opportunities that are available.

On all of those levels, Preferred Trust Company matches up well against any other provider, but it’s the customer service and feedback where they really excel. The feedback is particularly good. Preferred Trust Company has the best rating on the Better Business Bureau website that we’ve ever seen, chock-full of positive reviews and zero complaints.

That’s pretty incredible. The downside of working with Preferred Trust Company is that they charge higher than normal annual fees. For many investors who value premium service and being treated right, paying the fee is a small cost in the long run.

With all that being said, it’s time for you to decide for yourself and read more about this fantastic IRA provider. Feel free to check other ones that we have reviewed as well. Hopefully this helps you throughout your retirement investing journey!

The Preferred Trust Company Management Team

Preferred Trust Company has been in business since 2007 and is run by CEO Carrie Cook.

Carrie Cook, CEO, Preferred Trust Company

Carrie Cook, CEO, Preferred Trust Company

Cook is one of very few female CEOs sitting at the top of an IRA company. Cook has held the role for six years now and also still stands as President of Ignite Funding, which is a real estate investing firm. It’s obvious with her experience as a leader in the investing world, she has the skills to turn Preferred Trust Company into a top notch IRA provider.

Unfortunately, Preferred Trust Company doesn’t really highlight its executive team on the company website and we were left to look at Linkedin profiles. While there is a list of departments available on the website, no other C-level executives are listed. Employees who list themselves on Linkedin are not executives.

Still, Preferred Trust Company’s track record for servicing customers is amazing so the fact the organization doesn’t deep dive into its executive team shouldn’t bother anybody.

Preferred Trust Company Investment Opportunities

One of the cool things that sets Preferred Trust Company apart from other IRA providers is the fact that the organization presents its investing opportunities on a visual roadmap, outlining every kind of investment possible within the company’s IRA accounts.

preferred-trust-company

As you can see, the company splits up investing opportunities in a very simple to understand way. You have real estate investments like Tax Liens, Private REITs, Mortgage and Promissory Notes on the blue path, all of which are likely the most popular investing opportunities all self-directed IRA account holders at any firm will want to invest in.

The arguably cooler and lesser taken path is the natural resource road path. As investors can see, it’s possible to invest in many natural resources, not just precious metals, inside of an IRA account, including timber, gas, and oil.

The proverbial yellow brick road on the map features all kinds of privatized investments opportunities including opportunities to profit off of private placements, loans, equity or debt. While it’s not legal to invest in S-Corporations with an IRA account (that’s on the red road for a reason), C-Corporations are okay! The yellow road is also where LLCs and limited partnerships lie on the spectrum.

Then of course there’s the red road which details all investments that are prohibited in IRA accounts. These prohibitions come by way of the IRS and have nothing to do with the IRA provider. The following investments are prohibited:

  • Life Insurance
  • Art
  • Antiques
  • Gems
  • Coins
  • Metals that aren’t considered precious. IE metals other than gold, silver, platinum or palladium.
  • S-Corporations
  • Alcohol
  • Rugs

Again, none of the above list has anything to do with the IRA provider, this is all according to what the IRS says is illegal.

Account Types Offered at Preferred Trust Company

Just like many other IRA providers, Preferred Trust Company will put investors into accounts they desire based on personal preference. It really is up to the investor to decide at the end of the day. How does an investor figure out their own personal preferences? Ask yourself the following:

  • How old are you?
  • When do you want to retire?
  • How much do you want to have you retire?
  • What do you pay in taxes every year? Does it fluctuate?
  • What kind of investments do you already know a lot about?
  • How would you feel if you lost 20-30% of your account value in one day?

The above questions will help investors determine whether they should use a Traditional IRA or Roth IRA. The former defers taxes until withdrawal and allows for write-offs during contributing years. The latter does not allow for write-offs but lets investors withdraw tax free upon retirement. That’s better for those with significant wealth.

Then of course there are other retirement accounts related to small business such as the SEP and SIMPLE IRA that allow businesses to support the retirement of their employees while also gaining tax advantages. These plans are for smaller businesses that have fewer than 100 employees. 401(k) plans are simply more elaborate versions of these plans where employers can match up to 3% of their employees’ contributions, but those plans carry significant administrative costs that can normally only be swallowed by larger corporations.

In addition to these common types of accounts Preferred Trust Company also offers Health Savings Accounts and the ability to save for a child’s education too. These account types are offered by most other IRA providers as well.

The Fee Schedule at Preferred Trust Company

Many other IRA providers, like PENSCO Trust Company, follow a fee schedule that offers different options in terms to clients based on the number of assets they hold, or a percentage of their account value, or a combination of both. Preferred Trust Company keeps things pretty straight up. There are certain transaction fees that get paid and a $50 account opening fee. Beyond that, everything is charged on an annual basis in consideration of the client’s account value. There is no need to calculate percentages. It’s all very crystal-clear as Preferred Trust Company’s fee schedule shows:

The annual fee starts at $300 and applies to investors who have $50,000 or less in their self-directed IRA account. That’s a pretty wide range for a beginner, which means there’s really no escaping this $300 fee. An investor with between $50,000 and $100,000 in their account pays $400 annually. After that, each $100,000 increment by which the account value rises costs the investor an additional $100 annually. That means somebody with over $500,000 in their account it’s going to spend $900 in annual fees and anybody with more than $600,000 in their account is going to spend $1,000 a year in fees. The $1,000 mark is where Preferred Trust Company Capps the annual fees.

While we do have to give Preferred Trust Company credit when it comes to keeping fee is simple and straightforward, both the low end and the high end of the annual fees are among the highest of all the other IRA providers we have reviewed here at Sophisticated Investor.

Take a look at the summary of Preferred Trust Company’s account value fees below.

Account ValueAccount Fee
$0-$50,000$300
$50,001-$100,000$400
$100,001-$200,000$500
$200,001-$300,000$600
$300,001-$400,000$700
$400,001-$500,000$800
$500,001-$600,000$900
$600,000 and up$1,000

Customer Support at Preferred Trust Company

Preferred Trust Company offers customer support over the phone from 8 AM to 5 PM Pacific Standard Time through a toll-free number which is 1-888-990-7892. Those local to Las Vegas can also dial (702) 990-7892. Questions and concerns can also be addressed by email at info@ptcemail.com. Unfortunately, Preferred Trust Company does not have a live chat function on their website. The good news is it’s easy to submit a query via email or an online email form directly on the contact us page.

Customer Reviews for Preferred Trust Company

Preferred Trust Company doesn’t have a properly filled out Google business profile which is surprising. Nevertheless, the company has a fantastic rating on the Better Business Bureau. It is in fact one of the best ratings we’ve ever seen across all of our reviews.

Not only is Preferred Trust Company ranked a five out of five stars with their rating, but the company has no less than 89 customer reviews listed on the website. It’s a truly tremendous example of the company’s fantastic track record. It makes sense that the BBB would give the company an A+ rating.

Just keep in mind, we’ve reviewed the BBB profiles of many other IRA providers, but most of them have either 0 customer reviews or interactions at all or at least a few negative ones. That’s where Preferred Trust Company really shines.

They have a high number of customer reviews, and they’re all perfect. That is really impressive. It’s clear Preferred Trust Company really does take care of its customers. Just based on that alone, we have to rate Preferred Trust Company one of the top self-directed IRA companies on the market today!

Preferred Trust Company FAQs

Here are answers to some frequently asked questions you may have about Preferred Trust Company.

Apart from the fact that the IRS does not allow investing in collectibles like art or in life insurance policies, investors can direct their dollars into almost anything with Preferred Trust Company. That’s how most IRA companies operate. Preferred Trust Company is no exception.

Cashing out a check from Preferred Trust Company is not unlike cashing a check from any other financial institution. Investors can go to any retail bank and get their money, but there is a cost associated with getting a check issued by Preferred Trust Company as the fee schedule shows.

Totally! Preferred Trust Company will open an LLC for customers if they ask for it. The advantage to this is that investors can treat their IRA like a business account, drawing checks on their balance that allow for withdrawals and depositing as well of course. The advantage to this is that it offers more flexibility than not having an LLC. That said, an LLC might not be right for every IRA investor.

Preferred Trust Company has arguably the best profile with the Better Business Bureau that we’ve ever seen at Sophisticated Investor. Just based on that alone we have to give this particular IRA provider huge brownie points.

They do allow all kinds of investment options for clients with the exception of anything that’s not allowed under the guidelines of the IRS. They offer a roadmap that displays everything which is a really cool approach to explaining everything to prospective customers.

As far as account types go, Preferred Trust Company offers anything investors might want. The only thing we will say about their investment options as they don’t really promote digital currencies. Some IRA providers do a better job of that.

Overall regardless of the fact that its brand might not be as well known, we have to rank to me near the top of our list of IRA providers just because they seem to treat customers tremendously well and they lay out the educational portions of their website in a very easy-to-understand manner for anybody that’s new to self-directed IRA investing.

As always feel free to consider Preferred Trust Company alongside other IRA providers before making your own decision.

 

See our Top IRA Reviews page for more company reviews and a comparison table of self-directed IRA providers.

 

Preferred Trust Company
Preferred Trust Company - by, April 1, 2011
4/ 5stars
on
Preferred Trust Company
  • Editor Rating
  • Very Good
  • 1.5/5 Avg. User Rating
  • 1 Reviews
Review Summary :

Preferred Trust Company has been in business since 2007, helping clients retire early ever since. Take a look at some of the investing in account options available at the company. Note that there plenty of LLC options available.

Have you purchased products from Preferred Trust Company? Leave a review!
Glad to take your money and invest it...but
They were efficient in taking my IRA funds and investing them, but just try to speak to Ashley at the transfer desk and get your IRA transferred out to another IRA and the fireworks begin! Talk about a hassle. THEY DO NOT TAKE FAX REQUESTS?????? Is this not the 21st century????
November 23, 2021, 1:00 pm

Leave your rating

Field is Required

Field is Required

Field is Required

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