In our current global financial climate, more Americans are looking to invest at least a small portion of retirement funds into a precious metals IRA. If you’ve found your way to our website, you likely understand the benefits of holding at least a small percentage of your nest egg in gold and silver. If fortunate enough to have started your retirement planning early, you may be in a position to put a considerable amount of money into metals.
If looking to invest $250,000 or more into physical precious metals, here are a few factors to consider that may help cut down on some unnecessary expenses and help stretch your money further.
Account fees: Does your Gold IRA custodian charge flat or scaled fees?
Before opening a precious metals IRA account, take a good look at the annual fees involved. Some companies charge a flat rate for administrative and storage fees. Find a company with a low flat rate. A flat rate assures you that your annual costs stay the same regardless of the value of your account. Scaled fees are a different story. With scaled fees, your annual costs increase along with the growing value of your account.
If, for example, an international crisis sends gold prices soaring, the value of your holdings will skyrocket, and your annual fees will reflect this. Find a company that does not penalize your account for appreciating in value. You want the security of knowing that your annual storage and administrative fees will stay low and manageable whether your account is valued at $10,000 or $1,000,000.
>>Related: Buying Precious Metals? This 15 Page Gold IRA Scams Report Could Save You up to 50% in Fees<<
Gold IRA Storage Options: Does your custodian offer segregated vault storage or co-mingled storage?
I’ve seen companies advertise very low storage fees, only to find out they offer co-mingled instead of segregated vault storage. What’s the difference? With co-mingled storage, your metals are stored in the same vault along with the custodian’s other clients. You want to know the gold you’ve purchased is stored in your own secure private vault and that if you ever choose to sell or have your metals delivered to your home, that you’re selling/receiving the same precious metals you initially purchased.
It’s important to note: In recent years, precious metals IRA companies have been touting a “home storage” gold IRA for investors that want the benefits of an IRA account combined with the convenience and accessibility of holding your metals at home. The legality of this “home storage” is shaky at best. The gold dealer has no problem trying to sell you on this option, they just want you to purchase the metals. If you read the fine print, these dealers do not guarantee that you won’t have issues with the IRS! There is no liability on their end, and you could wind up being penalized. Our recommendation? Don’t try to trick the IRS with creating an LLC and acting as a custodian -the IRS isn’t stupid and you may end up in hot water!
Does your Gold company recommend bullion or collectible “rare” coins for your IRA?
When investing in precious metals, you want to invest in bullion. The price of bullion (bars and coins) most closely reflects the spot price of gold and silver. If you find yourself on the phone with a precious metals dealer steering you towards numismatic or rare coins, they may not be acting in your best interest. The problem? Numismatic coins can sell for up to double the value of their gold content. There are hefty commissions involved that go straight to the gold dealer’s pocket when selling these “rare” coins.
As an investor, you could find yourself overpaying for precious metals that never appreciate to a point where you even break even, let alone make money from your investment. Most gold companies are excellent, but it’s important to know there are also gold dealers that take advantage of uninformed investors. In fact, in recent years big name gold dealers have run into legal troubles over this. Some companies have even gone out of business from legal problems tied to their questionable sales tactics. Which leads me to the next factor to consider…
Does your Precious Metals IRA company have a good reputation?
The good news is that vetting a gold & silver dealer does not have to be a daunting task. Before setting up a precious metals IRA account, get on the phone. Call a few companies. If you find a dealer that specializes in gold & silver IRAs, who charges low annual fees, doesn’t try to hard sell rare coins, and offers segregated vault storage, look this company up online. The internet is an excellent resource for researching any company before giving them your business.
The three main ‘go-to’ websites are the Better Business Bureau (BBB), The Business Consumer Alliance (BCA), and TrustLink. These third party independent sites verify reviews are from actual clients. Read company reviews. If you see multiple negative reviews, look for patterns. If, for example, your company of choice has a few clients complaining about “pushy sales tactics,” you may be reluctant to do business with them. Cross referencing these three sites should give you a pretty good idea as to the kind of experience you can expect with a company.
Sound like a lot of work? It’s not! There are excellent gold dealers – some we’ve recommended have A+ ratings with the BBB with zero complaints against them, AAA rating with the BCA, and hundreds of 5 star reviews on TrustLink. Thanks to the internet, a quick google search can pull up a lot of helpful information, offering a transparent look into any company’s dealings -good or bad. With a little bit of legwork, you can easily set up your precious metals IRA with a solid reputable company.
We are constantly looking at the different gold IRA companies in the industry and offer suggestions of who to contact based on our research. Contact our recommended companies, as well as a few others and ask questions. Take a good look at how they compare based on the factors listed above.