Disclaimer: We may receive a referral fee from some of the companies featured in this article. This article does not constitute financial advice. Refer to a professional for financial advice.
As your retirement is fast approaching, you might be looking for ways to protect the value of your life savings. After all, recent events have shown to everyone that not everything is as safe and secure as far as the economy is concerned.
Gold and precious metals have turned out to be rather stable investment options today, and you can own them in bulk with the help of a precious metals Individual Retirement Account (IRA). Your choice of which IRA company to do business with will determine just how much of your IRA you can utilize.
How do you pick the best possible choice out of all the best precious metals IRA companies? Choosing one is not exactly that difficult. All you have to do is to remember several considerations first.
Top 4 precious metals IRA companies at a glance
- Augusta Precious Metals - Best Gold IRA company with great buyback program
- Goldco - Runner up - great gold ira fees - receive up to $10k free silver with qualified account
- American Hartford Gold - Great Reputation
- Birch Gold - Excellent customer service
#1 Augusta Precious Metals - Best Gold IRA company with great buyback program
Having a precious metals IRA can get downright expensive at times. As such, any company that offers optimal pricing for its services and fees can make for an ideal option, especially for beginners.
This is where Augusta Precious Metals comes into play by offering simple, straightforward, and downright transparent pricing. This family-owned company has been in the industry since 2012 and has been rated consistently high by agencies such as the Business Consumers Alliance.
What makes Augusta Precious Metals trustworthy is its insistence on laying down everything that you can expect expense-wise when doing business with them.
From setup to annual maintenance, you will get acquainted with what you are paying for and for how much when doing business with the company. Further bolstering its assurance of fair pricing is guarantees of giving your money back if you are not satisfied with its work, as well as price protection for new precious metals IRAs.
Augusta Precious Metals also feature a dedicated buyback program so you can get the funding you need in exchange for a portion of the gold and silver that you own.
If there were any flaws with this gold IRA company, it would be its limited options for platinum and palladium, as well as a high investment minimum. A lot of investment opportunists also point out that Augusta Precious Metals should be more flexible when it comes to online transactions.
Pros:
- Cost-effective fee structure
- A high degree of transparency
- Fair pricing for all purchases
Cons:
- Limited palladium or platinum options (if available)
- No online purchase option
- High investment minimum
Click here for Free Gold IRA Kit
#2 Goldco - Runner up - great gold ira fees - receive up to $10k free silver with qualified account
Learning all that you can about gold IRA companies before you make an investment is always a welcome advantage. This is where Goldco stands out the most since its education program can provide investors with information in an organized yet easy-to-understand format. In theory, this should make any client more confident with its decisions.
Founded in 2006, Goldco has developed a uniquely academic approach to precious metals IRAs. It calls this a "white-glove service", where the company assigns a specialist to every client to guide them through each step of a process or with their investment decisions.
Aside from that, every client is given access to an entire library of content including guides, e-books, videos, and seminars to help them get the hang of investing in precious metals with their IRAs.
That being said, Goldco is not exactly as forthcoming when it comes to its fees. If you want to know exactly how much its services and products will set you back along with fees and other charges, you will have to contact them through the company hotline.
Despite that, every other service offered by Goldco is seamless and can be completed within days. That includes 401K rollovers and other funding alternatives.
Pros:
- Extensive investor education program
- Competitive pricing
- Promotions for those that perform qualified transactions
Cons:
- Hidden fees
- High investment minimum
Click here for Free Gold IRA Kit
#3 American Hartford Gold - Great Reputation
This business has the trappings of dependable gold IRA companies by offering a solid selection of silver, gold, and platinum coins and bullion, and reasonable pricing. However, where American Hartford Gold stands out the most is its customer service.
Various reviews have pointed out that the staff of the company are not only knowledgeable but highly personable. They have been known to take their time in listening to customer complaints, and then finding a solution that is quite responsive to the problem.
It also helps that its support line is available on a near 24/7 basis. This way, clients can transact with the company regardless of which time zone they live in.
Apart from its customer service, American Hartford Gold has also made a name for itself with its investor education program. Instead of pushing you to do something like setting up an IRA or buying gold and silver, the staff would rather provide you with the information you need to make a fairly-informed investment decision.
Topping things off is a variable fee structure. This means that whatever you have to pay for doing business with American Hartford Gold every year is directly proportional to how often you use your IRA.
The only thing you'd have to take note of is that it does not have a price list on its website. For detailed inquiries, you need to get in touch with its customer service representatives.
Pros:
- 24/7 customer support
- Excellent customer service
- Extensive investor education
- Low investment minimum at $10K
Cons:
- No price list on its online pages
- Comparatively slow transaction speeds
- No shipping option outside of the US
Click here for Free Gold IRA Kit
#4 Birch Gold - Excellent customer service
When it comes to gold IRA companies, you'd need one that can be as transparent as possible with you. This is where Birch Gold excels the most. It informs you of everything that you need to know as far as its expenses are concerned in the first instance. With that kind of business principle, it is not surprising that even after almost decades, Birch Gold is still a thriving gold IRA company.
You don't even need to make a call to the company and ask an agent about fees and prices. All you need to know about precious metals IRAs is listed on its webpage.
It also helps that the gold IRA company uses a flat rate structure for its fees as opposed to a variable system. This is a huge advantage for people who buy gold and silver in bulk as its expenses are the same regardless of how often they use the IRA.
On the flip side, those who purchase gold infrequently and in small batches might find the fee structure to be disadvantageous to them.
Pros:
- Multiple options for depositary facilities and custodian companies
- Fees and costs are easily seen online
- Sizeable product list for both palladium and platinum
- Flat structure is ideal for frequent and bulk purchasers
Cons:
- A flat rate might not work well for small, infrequent investors
- Long process waiting time that can last up to 1 month
Click here for Free Gold IRA Kit
What is a Precious Metals IRA?
You must understand that there are several ways for you to protect your savings once you enter retirement age. You may have heard of individual retirement accounts where you can store a bit of your money while still working so you can use the same once you retire.
In essence, IRAs are like savings accounts that you can only use once you meet certain age-related requirements.
A precious metals IRA works under the same concept but with an added purpose: diversifying your investment portfolio. Where retirement accounts are meant to store "paper" assets like money, stocks, bonds, transfer certificates of tile, and other valuable contracts, a gold IRA company or any specific precious metal IRA is meant to store highly valuable rare earth elements to your name.
But make no mistake - gold IRA companies do not physically hold gold. Only the depositary facility attached to your company of choice can do that.
Also, precious metals IRAs are subject to stricter rules and guidelines set by the IRS. After all, the government wouldn't want this financial product to be an avenue for tax-related violations and abuses.
Precious metals IRAs are also quite expensive to manage. You can expect to spend as much as $300 every year for account maintenance, storage, and management fees. This does not include the transaction fees for every purchase you make along with shipping. All in all, an IRA is as much of a financial burden as it is a privilege.
Advantages of Precious Metals IRAs
So, why bother going through a lot of effort to deal with the precious metals market? Here are a few reasons.
A precious metal IRA makes asset diversification possible
With a precious metals IRA, you can store at least four types of precious metals that come in two distinct forms: coin and bullion. So, that should mean eight distinct asset types to be stored in your IRA, right? The answer is no.
Each precious metal product has its own market value, depending on its purity rating, mint date, and other inherent qualities. Gold IRA companies also source their gold and silver coins from different mints around the world.
If you know where to look, you can have your IRA store American Eagles, Canadian Maple Leaves, various collector's coins, and bars of different minting dates. Some IRA companies even offer "digital" options like crypto coins to further diversify your assets.
All in all, you can have a rather diverse asset pool within your IRA. This is provided, of course, if you time your investments right.
Beyond diversity, a precious metals IRA provides opportunity
If you are creative with your investments, you can also explore other avenues to further diversify your investment portfolio. For example, you can purchase stocks in companies that mine precious metals.
Alternatively, you can have some of the gold you own "rented" to the government, which in turn will provide you with a bond. These are special contracts that bind the government to pay you back for the gold plus interest after a certain period.
With these additional paper assets to diversify your portfolio, your IRA can earn passive income for you. The best part is this income is either tax-deferred or tax-free, depending on whichever privilege the IRS grants to you.
A precious metals IRA provides safety
There is no denying that the economy is in a precarious position right now. There is no telling if the spending power of your hard-earned cash will be the same in a few years.
Sure, the amount might remain the same, but what you can purchase with that money might considerably decrease. This is all because of the dependency of fiat currencies on an economy that is quite volatile.
Precious metals, however, are completely immune to this volatility and have their own intrinsic value. They can even perform well under adverse economic conditions.
By leveraging a portion of your assets and investing them in gold IRA companies, you can cast a safety net wide enough to protect your savings from inflation and other economic downturns.
A precious metal IRA offers a level of control not present in other retirement solutions
This might not come as a surprise to you, but you actually have little to no input or control whatsoever when it comes to your typical retirement plans. The regular contributions are already fixed and automatically deducted from your salary. Once you are ready to use the money, the amount you can withdraw regularly is also limited.
With a reputable gold IRA company, however, you have full agency as to what you can put in and withdraw from them. If you only want your IRA to store X amount of gold and silver, then there is nothing that prevents you from doing so. And if you want to withdraw a portion of your wealth to sell it, then most companies offer an easy buyback process.
With precious metals IRA, you are given complete control over your precious metals investments. That is distinct and unique in this specific realm of financial resource allocation. Whether distribution or allocation, you have the final say in what direction or path these physical assets will take.
On the same note, you have many options for moving them to a different location and vault, converting them to cash, etc.
The only limit with IRAs is the amount that you can annually contribute to them. The IRS would rather not have you contribute your entire annual income to your IRA since this is tantamount to tax evasion.
Precious metals IRA offers tax advantages
Self-directed gold IRAs, in particular, generally gain the same tax benefits as conventional IRAs. Depending on your tax bracket, your contributions to your self-directed gold IRAs or precious metal IRAs can be tax deductible.
With a gold or silver IRA, you are allowed to possess your physical precious metals or withdraw your precious metal IRAs holdings under the same rules and regulations that are extended by the conventional IRA distribution management.
With precious metal IRAs, you can hold, sell, and buy your metals in the same manner allowed by other assets held in the general fund.
Disadvantages of Precious Metals IRAs
Gold IRA companies offer amazing opportunities for those looking to store their resources in quality investments. However, it's not always the "pot of gold" you're looking for. Here are some of the things you need to look out for when investing in precious metals.
Hiring a custodian requires higher fees
You cannot get a hold of the physical assets you'll get by investing in your chosen gold IRA company. Custodians are the ones who will manage all transactions within your account, and since they will be doing all the work, you would have to pay them for their proficiency in the field.
You would also have to take note that custodial fees for gold or silver IRA companies are more expensive than any other management fee you'll encounter.
Specific restrictions will limit you from handling your own investments
It is not always reassuring if you cannot handle your own investments personally. In line with the first point, custodians are the only ones who can make any significant changes within your gold IRA account. If you are interested in adding more precious metals to your current IRA, you would have to get in touch with them instead of dealing with transactions yourself.
High fees and expenses
If you’re opening a gold IRA account, you should know that there are specific fees and expenses you need to cover and pay. The costs don’t stop after you set up the gold IRA. Far from it, unfortunately.
Aside from opening and setting up the account, you must also pay fees to maintain your precious metal IRAs. These may include initiation fees, annual custodian fees, storage fees, and more.
Aside from those, you also need to hire and pay an outside trustee and depository for storage. Since gold IRA transitions require plenty of paperwork, some companies and dealers charge a higher price. There is also the matter of shipping and transporting.
What Precious Metals Can You Invest in for Retirement?
So, what exactly can you store in your precious metals IRA? With a precious metal IRA, you can own coins and bullion in gold silver platinum and palladium coming from various sources across the globe.
It used to be that only American gold and silver eagle coins were allowed to be stored in US-based IRAs. However, times have changed and the IRS has allowed for internationally-sourced metals to be circulated in the country.
Today, you can fund your IRA to purchase all sorts of precious metals. You can’t, however, use the gold coins and gold bullion you already own to fund an IRA.
There is another catch, though: these gold silver platinum and palladium coins and bars need to be approved by the IRS. Essentially, the IRS limits the kind of precious metals one can store and hold in their IRA.
The IRS has certain regulations and requirements that gold silver platinum and palladium assets need to pass. One of the requirements that these precious metal coins and bars have to pass is their purity.
Essentially, all gold products, including gold coins and gold bullion, need to be 99.95 percent pure while other metals have to be at 99.99 percent purity. Getting in touch with a reputable gold IRA company will help you understand the authenticity of your prospective investments.
Of course, the government would rather not have you deal with counterfeit coins and bars. The only way that you can prevent owning such is by transacting with a legitimate gold IRA company.
You can also use your IRA to store rare coins. However, since the IRS cannot directly monitor the movements of these items, you have to make sure that you secure copies of these coins from truly legitimate sources.
How Much of Your IRA Should Include Precious Metals?
In as much as a precious metals IRA is designed to store gold silver platinum and palladium, it would still be better on your part if you can remain conservative with your purchases. Depending on your situation, the percentage allotted to precious metals for your investment portfolio should be from 5% to 10% .
There are three reasons why you should remain within this range. First, asset diversification is still the best method to protect your investments. This means your best bet of surviving inflation will involve not investing in one type of asset.
Second, precious metals might have a stable price trend but they still lag performance-wise when it comes to paper assets like stocks. They won't even earn money for you except if you have to sell them to someone else. If your entire asset portfolio is filled with nothing but precious metals, you may end up shortchanging yourself for the rest of your retirement.
Third, precious metals are not exactly immune from price drops. There have been instances when their prices did drop below profitable levels in the past. There is no telling when the same might happen within the foreseeable future.
The point is that filling your IRA with only one type of asset, even if such an asset was meant to be stored there, is never a good idea. You should spread your investments smartly, covering multiple asset types and industries. The wider your safety net is, the less likely it will be for all of your investments to drop in value.
How to Open a Precious Metals IRA
There are some key differences in opening a precious metals IRA from your traditional IRA. As such, the process might confuse you.
Don't worry, though; here is a quick run-down of what you have to do to set up a gold IRA account.
1. Select a self-directed IRA custodian
Gold IRA companies do not handle your IRA directly. That duty belongs to a custodian, which can come in the form of a bank, an equity trust company, or any similar institution as approved by the IRS. In turn, these custodians invest in several assets in the precious metals line as soon as you finish setting up your gold IRA account.
Your choice of a custodian determines the fees that you have to deal with for the management and maintenance of your IRA every year. The rule of thumb here is to pick the gold IRA company you can trust the most while offering features that meet your needs and budget.
2. Choose a precious metals dealer
The dealer is the one that receives money from your custodian to purchase precious metals. So, what should you look for in a dealer? Your best solution here is to do some research.
What you have to look for is legitimacy by way of membership in some industry groups and monitors. For dealers, they have to be affiliated with the American Numismatic Association, Industry Council for Tangible Assets, and the Professional Numismatists Guild as they set the standards by which all dealers have to abide.
Also, gold IRA companies should be familiar with these dealers themselves. If you are not sure which dealer to choose, pick the one that your IRA agent will recommend.
3. Decide what products to buy
This may be the simplest step you have to take. As to which items you have to choose, it is best to pick the ones that you are most familiar with.
As an American, your best bet here are coins like the American Eagle or the Gold Buffalo. They have safe bid-ask spreads while maintaining a fairly stable price trend.
Once you are confident with your purchases, you can then branch out to international mints. Again, the one closest to what you are most familiar with will work here. Some Canadian Maple Leaf coins or British coins might be most recommended.
Again, your options are going to be dependent on what is currently available. Inquire with your agent first for availability and price so you do not waste time.
4. Choose a depository
All the gold and silver that you will own will have to be stored in a depository facility approved by the IRS. As far as the United States is concerned, there are only three recognized depositories which are Brinks, the International Depository Service, and the Delaware Depository Service.
Gold IRA companies can recommend a service, but you should always pick the one that meets your needs the most. If possible, choose the one that meets your budget as well as your storage preferences (segregated or non-segregated).
5. Complete the transaction
Now that you have chosen your custodian, dealer, and depository while also selecting the best possible products to invest in, your order is now complete. As long as your IRA has the funding, the company will handle all the expenses from the shipping of your order to the depository of your choice.
Also, the custodian will handle the task of updating the item list in your IRA. All that you have to do once your precious metals have been moved is to constantly monitor the movement in their values. You will never know when you might need to make a withdrawal.
What Are Precious Metal IRAs Rollover?
One good way to fund new precious metal IRAs is to use the funds from another retirement account, like 401 (k), 403 (b), or another IRA. It is the process of moving over and transferring the funds. The gold IRA company you pick can help you initiate the process by contacting a plan administrator with a request to roll over the funds into your new precious metals IRA.
The most typical and famous kinds of precious metal IRAs are gold and silver IRAs. These IRAs can hold physical gold and silver bullion or coins rather than traditional investments like bonds, stocks, or mutual funds.
There are several ways to do a gold ira rollover, though the most common is to have your funds transferred directly from your old account to the new one. This gold IRA rollover is relatively easy and can be accomplished online or by phone. It is also the less complicated route and carries lower risk of acquiring IRS penalties.
On the other hand, you can also initiate an indirect rollover by withdrawing funds from an account and depositing it to the new gold IRA account. Though, note that you have 60 days from the date you receive the funds to transfer them to your company or custodian without tax penalties. It will be considered taxable withdrawal if you fail to complete the transfer within the 60-day period.
The main idea behind a gold ira rollover is that you can use physical assets, like precious metal coins, to protect your retirement savings from market inflation and volatility. If you want to add more physical assets to your gold IRAs, you can easily purchase precious metals from the gold IRA you are working with.
How Do You Make a Withdrawal from a Precious Metals IRA?
For a precious metal IRA, you are given two withdrawal options. The first is an In-Kind Distribution, where the precious metals you requested for withdrawal will be shipped to your address. From that point on, you can do whatever you want with the withdrawn gold.
The second option is a Depository Purchase. Here, the depository in possession of your precious metals will buy the gold and silver from you at a price that both parties will find to be the most convenient. This might be the better option if you want to maximize your investment in that gold and silver.
Either way, the withdrawal of precious metals from your IRA is subject to special tax laws. If you withdraw anything from it, you will have to pay for penalties and specific tax items depending on how much you withdrew.
When you reach the age of 72, the IRS will require you to take required minimum distributions for every metal that you own. The RMD for each piece might be small, but they do stack up if you own more than a handful of gold coins and bars.
Lastly, you have to sell your gold and silver as quickly as possible. If you fail to sell the gold within 60 days, you will be subjected to withholding tax and other penalties.
As such, before you make a withdrawal, you must consult with an accountant, financial adviser, or lawyer. The complicated nature of withdrawals can make it easy for you to attract the attention of the IRS for all the wrong reasons, but with the guidance of a specialist, the chances of you making a mistake and incurring unwanted tax obligations might be lessened.
How Should You Pick The Best Gold IRA Companies?
If you plan to open a gold IRA, you must work with a trusted and reputable gold IRA company to help ease the process. Gold IRA investments are not something to be brushed off, as they can be expensive and complicated. Just imagine how troublesome it’ll be if you get involved with questionable gold IRA providers.
To choose the best gold IRA company, you must know what factors to look for. While there is a wide range of factors that can justify the reliability and competence of gold IRA providers, there are three crucial things you need to consider.
Ease of Setting Up A Precious Metal IRA
Gold IRA companies do everything in their power to gain new clients and earn the trust of their current ones. One excellent way to do so is by making the setup process of gold IRAs as straightforward as possible.
It is safe to assume that not everyone is well-versed and knowledgeable in the precious metals industry. Many newbie investors are still learning about the market. Letting them navigate the industry on their own is a recipe for disaster. It is in the best interest of gold IRA companies to make setting up gold or silver IRAs as easy as they can.
It is quite a common trait for reputable and big-name gold IRA companies to offer clients qualified assistance and guidance from the professionals on their payroll. They typically have specialists you can directly talk to throughout the account-opening process.
Fees and Costs
Most gold IRA firms charge fees for their services. These charges cover various costs that are involved in the opening of gold IRAs. These fees also tend to cover other things, like maintaining the account over time and securely holding precious metal assets.
If you cross paths with a gold IRA company that promises their services to be free, it would be best to turn the other way. Such companies are not trustworthy. You can assume that they don’t have the necessary expertise in handling gold IRAs and wouldn’t be able to securely maintain your precious metal coins and bars in your account.
Gold IRA companies that offer free services typically do not provide additional and necessary assistance you would have received from higher quality companies. Don’t trust those that have unrealistic promos, either.
Some companies offer free silver or gold coins if you open gold IRAs with them. While they would typically stay true to these promises, you can expect they would find other ways to get something back, primarily by applying hidden fees.
On the other hand, the best gold IRA companies offer reasonable rates. Some even have transparent fee structures.
Selection of Precious Metal Assets
One of the primary reasons why people open gold IRAs is to diversify their investment portfolio. As a result, working with the best gold IRA companies makes complete and utter sense as they tend to have the most diverse selection of gold silver platinum and palladium products.
Did you also know that you can purchase precious metals directly from gold IRA companies?
Many gold IRA firms offer physical precious metals – ones you can add directly to your gold IRA accounts. That means you can buy physical gold or silver from them!
While a good amount only offers silver and gold bullion, bars, and coins, they still provide an extensive selection of each type of metal asset in their list. Working with companies with this kind of service makes acquiring precious metals easy and accessible!
Other companies allow clients to invest in gold bullion or coins. Some also accept other precious metals, as long as the IRS approves them.
When choosing a gold IRA company, it would be best to work with a firm with a wide selection of assets. It’s always better to work with one that doesn’t just offer physical gold but also other precious metals.
Reputation
Gold IRA companies develop positive or negative reputations over time. Usually, they are for a reason. When searching for a gold IRA company, you must choose one with a positive standing reputation and good overall customer satisfaction. These kinds of gold IRA companies are the ones that work to satisfy and serve their clients.
One excellent way to evaluate a gold IRA company’s reputation is to look them up on the Better Business Bureau (BBB). It is an organization that allows customers to write and share reviews on businesses online. It also rates companies on a broad scale, from A+ to F.
It is better to look up reviews here as they are unbiased and unfiltered. The reviews posted and featured on the official websites of gold IRA companies are typically ones that place the company in good light.
It is tough to find gold IRA companies with a perfect A+ rating at BBB, if there is any at all. Though, you can find ones that have B or slightly higher ratings. They are top-notch in terms of customer service.
Extensive Educational Resource
It is always a good sign if the gold IRA company offers many educational resources. Some low-quality gold IRA companies tend to let their new clients crawl in the dark. The best gold IRA companies care about their clients.
Gold IRAs are complex and complicated. There are several legal codes and regulations involved. Moreover, you need to know how to tell apart the acceptable and not. Considering the complexity of the industry, a good ira company must ensure that they provide extensive educational resources.
Work with a company that will teach you everything there is to know about precious metals. Ones that can tell you how to purchase physical gold or other precious metals, how to open gold IRAs, and how to maintain them. Look for a company that is ready to answer all your questions.
Final Thoughts – Precious Metals IRA
So, should you open a precious metals IRA?
On one hand, they make for suitable protection against inflation and market instability since you can now own assets that can maintain stability even under adverse economic conditions. On the other hand, IRAs are expensive, and the chances of you becoming liable tax-wise are high if you make a mistake with your transactions.
Aside from that, there is the fact that you’d rather want to keep your investment portfolio as diverse as possible. You cannot solely rely on an IRA to protect your savings from whatever is happening in the economy right now.
Thus, the answer to the question above depends greatly on your current finances and your entire investment strategy. Gold and precious metals should be a part of your entire strategy and not your sole tactic to stave off inflation.
If you do decide to set up an IRA, which of the best gold IRA companies should you choose? Without a doubt, the greatest option for beginners right now would be Augusta Precious Metals. With their ability to remain transparent with you from setting up to purchasing, you can be certain that there will be no surprises in your transactions, especially with the fees.
Think of it this way: every other company offers roughly the same set of features, perks, and advantages. What you will need more is a company that can guide you through every step of the process while being as honest as possible with you about the fees.
A gold IRA company that offers the highest level of transparency possible will help you prepare for your expenses while making you confident with every purchase you make.
Commentaires
Enregistrer un commentaire