Unpacking the Strata Trust Company: An In-depth Analysis

Established in 2008 in Austin, Texas, Strata Trust Company originated as an auxiliary body of Horizon Bank, SSB, originally known as Self Directed IRA Services, Inc. After a successful rebranding, it morphed into the Strata Trust Company we're familiar with today, focusing on offering superior Individual Retirement Account (IRA) choices and services.

Strata's cumulative experience in the self-directed IRA industry surpasses 350 years, illustrating its commitment to providing exceptional alternative investment services. By 2015, the company celebrated the milestone of exceeding $1 billion in custodial assets, and this figure continued its upward trajectory. By 2019, the assets they held in custody surpassed the $2 billion mark.

The firm's fundamental ethos revolves around the following:

Prioritizing Service & Client Focus: Strata aims to offer unrivalled customer service and ensure clients enjoy an optimal experience.

Stability: The firm endeavours to fortify relationships, its offerings, services, and community connections.

Integrity: Honesty and trust are the pillars on which Strata bases its client interactions.

Innovation: Strata distinguishes itself from competitors by fostering a creative and inventive problem-solving culture.

Teamwork: Growth is a team effort for Strata, believing that collaborative actions will propel the company towards its objectives.

Like any reputable investment entity, Strata offers clients multiple avenues for investment. They provide opportunities for customers to initiate an investment account in:

Precious Metals IRAs

Strata Trust allows you to venture into physical assets like valuable metals (e.g., gold, silver, platinum, etc.) in bullion or coin form for your potential individual retirement account. To initiate a Precious Metals IRA via Strata Trust Company, you're required to:

• Establish a self-directed IRA account by completing the necessary paperwork.

• Deposit funds into your IRA via a transfer, rollover, or yearly contribution.

• Identify your preferred dealer for acquiring precious metals and ensure all Precious Metals Investment Checklist items are accounted for.

Strata Trust also furnishes investors with essential insights to consider before investing in precious metals for IRAs:

• Strata operates independently of any dealers or their sales representatives – As an independent subsidiary of Horizon Bank in Austin, Texas, Strata aims to emphasize that its operations are confined within the company itself.

• Exercise thorough due diligence when selecting a precious metal dealer – Strata highlights the necessity of investors being extremely meticulous in their dealer selection process for their IRA. It's common for dealers to inflate sales prices, misrepresent their credentials, or engage in unscrupulous investment practices. Strata is keen on ensuring clients proceed with caution.

• The purchase price for precious metals acquired via a dealer is critical – Strata wants to ensure investors are completely aware of the purchase price when entering into transaction agreements. The dealer you select will earn a percentage from the profits of your Precious Metals IRA with Strata. The "spread", or the disparity between a dealer's cost and your purchase price, can fluctuate, making it vital to select a dealer prudently when setting up an account.

• The worth displayed on your Strata account will be based on the spot price – Spot value, calculated as the current spot price times the ounces of pure metal in the coin or bar, is crucial in investor's account statements and online access. It is used to report the fair market value of your account to the IRS.

Traditional IRAs

A Traditional IRA allows people to channel pre-tax earnings towards investments that can expand without immediate taxation. Strata Trust equips investors with crucial information for opening a Traditional IRA account with them.

KEY FEATURES OF TRADITIONAL IRA:

• The allowable yearly tax-deductible contributions hinge on your income bracket.

• You can start making withdrawals by 59 1/2, mandatory by the time you reach 72. For those 70 1/2 or older before 2020, withdrawals must commence at 70 1/2.

• Post-2020, the SECURE Act permits contributions.

• Withdrawing before reaching 59 1/2 years incurs a 10% penalty unless certain conditions for exemption are met.

• Upon drawing funds from a Traditional IRA, taxes become due on the gains.

• Regardless of income restrictions, Traditional IRAs can transition into Roth IRAs once income taxes are paid.

Roth IRAs

Roth IRAs allow clients to deposit post-tax income up to a certain limit annually.

FEATURES OF ROTH IRAS:

• Their income level defines a customer's eligibility.

• The annual contribution to a Roth IRA is not eligible for tax deductions.

• Following the IRA guidelines, all proceeds to the account are entirely tax-exempt.

• As long as customers have earned income in a given year, they can make annual contributions, irrespective of age.

• Roth IRAs do not demand any obligatory withdrawals or disbursements.

• Once a five-year holding period is fulfilled, principal contribution withdrawals can be performed at any moment without penalties.

• Traditional, SIMPLE, and SEP IRAs can be converted into Roth IRAs once income taxes are paid, without incurring any tax penalties and regardless of income boundaries.

SEP IRAs

A SEP, or Simplified Employee Plan, is a retirement program established by an employer, allowing them to make tax-deductible contributions to a Traditional IRA.

FEATURES OF SEP IRA:

• Employers can choose the contribution level to a SEP each year.

• Employers have a cap on their contributions, limited to 25% of earned income.

• Any business entity with up to 100 employees can establish a SEP IRA. Owners of sole 

• proprietorships are considered employees for SEP purposes.

• Eligible staff members can maintain their own IRA account linked to the SEP.

• Employers can choose to fund or not fund a SEP account each year based on economic conditions.

• If an employer contributes to their own IRA, they must also contribute to all eligible employees' IRAs.

• Upon contributing to a SEP, funds are entirely vested and non-forfeitable.

SIMPLE IRAs

A SIMPLE IRA, an acronym for Savings Incentive Match Plan for Employees, is a unique IRA that allows employers to strategize retirement planning for their workforce and their own.

CHARACTERISTICS OF SIMPLE IRA:

• Specially designed for small businesses employing 100 individuals or fewer.

• If a business exceeds the 100-employee limit, SIMPLE IRA plans can be sustained for up to two years.

• Employees have the option to make contributions via salary reduction.

• Workers have the opportunity to receive matched contributions from their employers.

• Employers must match contributions to an employee's account up to 3%, a crucial aspect.

• Employers can make non-elective contributions instead of matching contributions to an employee's account.

• Employees hold full vesting rights to the account upon funding of SIMPLE IRAs.

Strata Trust Company consistently displays an avid interest in fostering community spirit. Over some time, Strata Trust has been part of numerous community service events such as charity drives for food and toys, fundraisers, walks, and runs. All these initiatives aim to raise 

awareness for certain diseases, acknowledge national holidays, or create a positive ripple in the world. Strata is firm in its belief that a thriving community enhances the collective strength of the company, enriching employee culture and the work environment.

Strata Trust Company leaves no stone unturned in ensuring they are up-to-date with the latest, precise and beneficial information to offer its clients. To this end, they maintain a richly insightful blog for clients, updated roughly every ten days. This resource educates clients on an array of topics such as managing your IRA account with Strata Trust efficiently, what you must know when filing taxes as an IRA owner, how the existing economic and political scenarios could impact your IRA, strategies for post-IRA retirement, crafting your retirement portfolio, updates on Strata Trust events, and much more.

The "Meet The Team" section on Strata Trust's informative website lets existing and prospective clients get acquainted with dedicated employees who provide personalized customer service. This space showcases the members of the Strata executive, management, leadership, and business development teams, with certain profiles also including their LinkedIn details and comprehensive bios, helping you understand the individuals steering the company.

In a digital era, where most transactions occur at the click of a button, companies must stay in step with technology. Keeping this in mind, Strata Trust assures investors of secure technological investments. Strata Trust Company partners with numerous tech firms to provide clients safe and dependable resources for managing their assets. The partners include, but aren't limited to:

• Innovest Systems

• Laserfiche

• Millennial Vision Inc.

• Efficient Technology, Inc.

• Meridianlink

• DocuSign

Balancing the Benefits and Drawbacks of Strata Trust Company

Advantages

• A wealth of knowledge: Strata Trust Company's website is a goldmine for individuals eager to understand the art of investment. It provides a comprehensive insight into what Strata Trust offers, plus general investment principles. It details IRA service providers and different IRA accounts that can be opened with Strata, and it also features an informative, regularly updated blog for clients. Strata Trust aims to arm investors with all the necessary tools for a successful investment journey.

• Exemplary customer service: Strata Trust is about more than just selling reasonably priced IRA services. The team goes the extra mile to ensure customers receive what they initially signed up for. Strata's mission revolves around providing unparalleled customer service with an emphasis on accuracy and meeting your long-term needs.

• Economic services: Strata Trust has made it fairly affordable for individuals to open an investment account. They aim to ensure clients use the money judiciously for a secure retirement.

• Integrity: Trust, as reflected in their name, is a fundamental principle for Strata. Their business thrives on trust and upholds integrity as a core value. The ethos of Strata includes a commendable work ethic, morality, honesty, respect, and transparency. At Strata, integrity forms the bedrock of their operations.

• Personalized interaction: Strata Trust takes pride in its dedicated team that works tirelessly to assist clients in choosing the most appropriate IRA options. Rather than leaving customers to conduct extensive research independently, Strata Trust offers one-on-one service with real, trained professionals committed to achieving client satisfaction.

• Flexibility: Strata Trust ensures investors have full investment flexibility, surpassing what many banks, brokerage firms and other financial institutions offer. They believe their unique flexibility sets them apart from competitors.

• Protection: Strata Trust acknowledges that securing your funds is paramount when investing. They have therefore laid out a comprehensive strategy for investor account protection and security, addressing aspects like:

• Security policy

• Business continuity

• Client information privacy

• Professional liability insurance

• Regulatory & audit controls

• Uninvested cash

Disadvantages

• Numerous charges!: Spending money to earn more can be intimidating for many. Strata Trust may not be the best fit for you if you're not inclined to spend more than your actual investment. Strata's fee structure can differ based on the specific IRA and includes charges like:

• Annual storage fees

• Annual asset holding fees

• Annual precious metals storage fees

• Processing fees

• Service fees

• Unstable interest rates: Investment is not a guaranteed game, which also applies to interest rates. They are susceptible to the unpredictable nature of financial markets.

• $250 account closure fee: The cycle of Strata Trust fees does not end here. Many clients might be disappointed to learn that, unlike some investment companies that charge minimal or no fees for account closure, Strata charges a hefty $250 for closing an investment account.

Strata Trust: A Credible Entity or an Ingenious Scam?

No, Strata Trust Company is far from being a fraudulent organization. It is an entirely legitimate enterprise, with numerous testimonials and reviews substantiating its authenticity. Numerous individuals seeking dependable investment firms may have stumbled upon Strata Trust Company.

Being a potential investor, it would be only logical to dedicate some time to thorough investigation before allocating your painstakingly earned money to any company. One would naturally be cautious about where to invest their finances. With the plethora of dubious entities, deciding might take work. However, based on all the information I've gathered about Strata Trust Company, I can confidently assert that they appear as genuine as they claim to be.