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May 24, 2021

Is Strata Trust Company a Scam? Read this and get to know them!

Do you want to know all about Strata Trust Company?

Is Strata Trust Company a Scam? Well, let’s try out best to reveal they’re true colors in this review!

To do this, we’ll get to their most in-depth details and assess for ourselves if they are worth the try.

Can they be trusted? Can I invest my entire life savings with them?

Let’s start this Strata Trust Company review!

What is Strata Trust Company?

Is Strata Trust Company a Scam?

Strata Trust Company is an Individual Retirement Accounts (IRA) Custodian that helps individuals work on their retirement savings.

They were founded in 2008 as a wholly-owned subsidiary of Horizon Bank, SSB. The company is located in Texas and its former name is Self Directed IRA Services, Inc.

So, what this company does is to empower investors to reach their retirement goals by providing custody of alternative investment IRAs as well as traditional assets.

Strata Trust Company Products & Services

Strata Trust Company offers services to both individuals and professionals. Let’s first explore how they serve different individuals:

Individuals: Self-Directed IRA

A self-directed IRA is a retirement account that empowers investors to take control of their financial future. Similar to a traditional IRA, a self-directed IRA can provide you the opportunity to take advantage of tax benefits and watch your money grow with compound interest.

As a result, the difference that a self-directed IRA can provide is that you can have more investment options and greater control of your retirement portfolio.

With a self-directed IRA, you can:

  • Have a wider range of investments
  • Obtain also the power to invest in a company you trust
  • Protect your wealth against market volatility and inflation rates
  • Have control and flexibility over your investments
  • Have tax-deferred or tax-free growth, tax deductions, asset protection, and estate planning benefits
  • Obtain protection for your assets under federal bankruptcy laws

IRA Administrator VS IRA Custodian

Normally, when we talk about Self-directed IRAs, you’ll encounter words such as IRA Administrators and IRA Custodians.

Let us know the difference between the two!

  1. IRA Administrators are not regulated by state or federal banking authorities. Administrators can maintain control of a customer’s un-invested cash and assets if the custodian has contracted its powers away. They are a risky way to process your IRA given the situation that happened in Utah in 2014, some states are beginning to tighten state laws to prevent the inherent risks with the administrator business model.
  2. IRA Custodians are directly regulated by state or federal banking authorities. By law, IRA Custodians can be a bank, trust company (LIKE STRATA TRUST COMPANY), or apply with the IRS to become an approved IRA custodian. They are responsible for maintaining control of their customer’s un-invested cash and hold title to customer assets.

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How to Get a Self-Directed IRA?

Is Strata Trust Company a Scam?

First, choose your investment.

With Strata Trust Company, you can have traditional, nontraditional, and alternative investment options with your IRAs. Examples of investment options are:

  • Real Estates like commercial property, raw land, and even apartment buildings and condominiums.
  • Gold & Precious metals like IRA-permissible gold, silver, platinum, or palladium coins and bullion.
  • Crowdfunding like marketplace lending to private equity.
  • Private equity-like start-ups or existing entities, including real estate ventures (they are not publicly traded on the stock exchange).
  • Private debt like those that are incurred by companies and corporations or real estate-backed debt
  • Structured Settlements and secondary market annuities.
  • Public Investments like publicly traded stocks, bonds, or mutual funds within an IRA-owned brokerage account, or invest in publicly registered, non-traded LPs, LLCs, and other investments.
Next, choose the type of IRA that fits your needs.

There are different types of IRA that you can have with Strata Trust Company like:

  1. Traditional IRA gives individuals the opportunity to direct pretax income towards investments that can grow tax-deferred. This type of IRA allows you to have annual tax-deductible contributions are based on income level. 
  2. Roth IRA is a type of IRA that allows you to set aside after-tax income up to a specified amount each year. Earnings on the account and withdrawals are tax-free after age 59½.
  3. SEP IRA is an acronym for Simplified Employee Plan and is a retirement plan that’s established by an employer. A SEP IRA permits employers to make deductible contributions that are made to a Traditional IRA.
  4. Simple IRA is an acronym for Savings Incentive Match Plan for Employees (SIMPLE). A SIMPLE IRA allows employers to plan for their employees’ retirement and their own.
Lastly, choose how you want to fund your account.

This step is very important to get your IRAs up and running. There are three methods you can do to fund your IRA which is as follows:

  1. Direct transfer in which you will move your IRA funds or assets directly from one IRA custodian to another.
  2. A rollover in which the movement of funds between two qualified retirement plans, such as from a 401(k) plan to an IRA, or from one IRA to another IRA.
  3. Annual Contribution in which you can contribute to your self-directed IRA, within the federal limits, on an annual basis, or set up as a recurring (monthly or biweekly) basis. However, you are only eligible to have this kind of IRA if you have earned income. Earned income includes taxable employee compensation and net earnings from self-employment, as well as certain disability payments.

Professionals: Simplified Investment Diversity

Strata Trust Company can help the following professionals through a different type of services:

  1. FINANCIAL ADVISORS & BROKER DEALERS wherein you can help your clients optimize their retirement portfolio with a self-directed IRA.
  2. INVESTMENT ISSUERS & PRODUCT SPONSORS in which you can increase the capital available for your endeavors through retirement account investors.
  3. REAL ESTATE PROFESSIONALS in which you can provide your knowledge of the industry to make wise investments for yourself and your clients.
  4. PRECIOUS METALS BROKERS in which Strata Trust Company is well equipped to handle the unique needs required to hold precious metals in a self-directed IRA.

Strata Trust Company Reviews and Ratings

 Is Strata Trust Company a Scam?

Here are some of the reviews and ratings of Strata Trust Company:

Is Strata Trust Company a Scam?

Is Strata Trust Company a Scam?

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Is Strata Trust Company a Scam?

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What I LIKE About Strata Trust Company

  • Well-known in the industry 

They have been in the industry since 2008. Also, the company also has more than 36,000 empowered investors and more than 2 billion dollars of assets under custody. This makes them practically trusted by both individuals and professionals in the industry.

Aside from this, they are committed to continually investing resources towards the success of our employees and the industry. They fully support their employees’

education and professional development through

conferences, training, and other learning opportunities. 

What I HATE About Strata Trust Company

  • A lot of fees

Well, with Strata Trust Company you’ll be paying a lot of fees. Some of it includes annual account fees, annual asset holding fees, annual precious metals storage fees, processing fees, service fees, etc.

  • Plenty of negative reviews

Apparently, when you search for reviews about this company, they have a lot of negative reviews. So, you should consider that before working with them.

Well, on the good side, they are responding to bad reviews and complaints.

Is Strata Trust Company a Scam?

The question now… Is Strata Trust Company a Scam?

Well, with all those years in the industry, they are definitely not a scam. However, you should also consider and think carefully before getting their services.

You’ll be paying a lot for their services so, you should be ready for that above everything else.

Final Thoughts

Given all those years, they can be a good option to serve as your IRA Custodian. However, you should think it over and research about them more!

So, what I would recommend is GOLDCO.

Goldco is a gold or precious metals dealer that helps you with your IRAs to get diversified. They have recommended custodians to assist you with your IRAs, so I think choosing them is for the best.

To know more about them, just click the button below!

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I hope you find this review beneficial! Thank you!

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