Here is an interesting exchange from www.jsmineset.com today.....so, do any of you know of a broker who will hold your self-directed IRA in your name, on their balance sheet, rather than in their name?
Robin
"Dear Jim,
I decided to put a phone call into my local xxxx brokerage office to ask if my IRA was segregated under my own name or held in common on xxxx's balance sheet.
The rep said not to worry, it’s all insured! We are very sound, we are a privately held company and even in the unlikely event we failed, there are two insurance issuers who will repay all the investors.
I said great, I am glad to hear it… but can you please tell me who holds my funds, me or you on your balance sheets.
He was very kind and asked me to give him a day or so.
I heard from him today and what he said was, “I am not going to give you the answer you want to hear.” Your IRA is held on our balance sheet, but don’t worry, it’s all insured.
OK, that answers that. So how solid is xxxx? What is your derivative exposure… he said huh, what? You mean sub-prime stuff… we don’t do any of that. Great, my bank said the same and they have a ton of derivatives on the books.
I am being stonewalled every time I speak with any financial institution. They all talk out of the side of their mouths.
CIGA Bruce
Dear Bruce,
You simply have to shop. Monty did and protected his clients in the process.
I assure you that there are trust companies that do things right.
I do not make recommendations here because I must force you, Bruce, to fend for yourself.
If I do not what have I done for you other than weaken you?
You have the right questions to ask so that you ask them. You will get the right answer in your investigation.
Right now, Bruce, you are hung out to dry.
Insurance on share value and cash suffers from the same weakness as credit default derivatives and bond insurance default credit derivatives. The insurance entity and government agency is not funded to cover what it has insured. You will get a 2 year non-transferable Treasury instrument that has no market. You expect to be handed money the next day?
Jim" |
