Qualities in a Top Notch Gold IRA Company
The stock market is one of the most common investment options for retirement plans used by many investors. Some retirement investors prefer to invest in bonds, shares and funds while others invest in metals like gold and silver. IRA investors who invest in precious metals do so under specialized IRA accounts like the gold IRA accounts. Gold IRA accounts involve a detailed process of transferring gold to a respective custodian who is mandated to take care of it at a selected depository. Most of the brokers in the market do not offer gold IRAs and so you may require a custodian to manage the account for you. The custodian manages the paperwork and tax reports for your gold transactions to ensure your investment meets the retirement plan requirements. The custodian must be a professional and guarantee the investor a transparent process of transition and investment.
If you have invested in the gold insurer, you may be wondering what to look for when searching for a top Gold IRA custodian. Gold has high value and due to proven stability against a volatile economy has recorded an increasing demand. Having a reliable custodian will help you understand the market and also guarantee your investment to be safe. Many people choose to invest in gold as their reserve of wealth because gold is not negatively affected by any market trends like inflation. Retirement investments are very crucial and most investors are attracted by the stability that comes with gold investment.
If you would like to start a Gold IRA account, ensure you gather enough information about the industry and areas where you will benefit. It is also important for you to get a professional to make you understand how a Gold IRA account operates and the requirements to be successful in the industry. Below is a guide for you to start your Gold IRA account;
Gold IRA accounts are just like the other IRA accounts and offer the same subscription controls and issuance rules but in place of paper assets, the account holds actual gold alongside any other precious metal of interest to you. A Gold IRA account holds tactile assets whose liquidity is low. Opening this account is very easy and smooth and as soon as you settle on a custodian, you can include gold as one of your investments in securities and you are set to begin.
Your gold is held by your custodian at a depository that is fully insured and operated by the government. Upon retirement, you will arrange with your custodian who will arrange for your gold to be shipped safety to where you are.
Five steps to take to start your Gold IRA account
1. Identify a custodian.
You can check the available options on the shortlist of the best three Gold IRA companies. Alternatively, you can seek advice from family or friends who have already invested in the industry.
2. Open a Self -directed IRA account
This account will enable you to manage your investments together with your custodian. You can open a Traditional IRA where the contributions are tax deductible or a Roth IRA where the distributions are tax free.
3. Identify metal dealer
Ensure the metal dealer you settle to buy your gold is legit and has pure gold. Consider checking for referrals and working hand in hand with your custodian to consider referrals.
Fund your self-directed IRA account with a transfer using a qualified plan. Your custodian will guide you in the ideal plan that will work for you.
5. Choose investments
Pick out on the investments you want in your account. Your custodian and gold dealer will finish up with the rest of the transactions that invoice purchase and transfer of your gold to your account.
There are several pros and cons of investing in the Gold IRA accounts, weight the two and invest with full knowledge of the industry.
Benefits of Gold IRA accounts
• Your investment is not taxed upon withdrawal if you choose a Roth IRA account.
• This account is a long-term investment and this ideal for a retirement investment. Gold illiquidity is very low and this discourages unplanned withdrawals. The Gold IRA offers privacy and it is a strong long term financial security for any investor because no one including the government controls the value of precious metals.
• With a Gold IRA account, you are in charge of direct controls of all investment decisions that are made concerning your account. You will have better full control if you use a self-directed precious metals IRA.
• A Gold IRA account is a protection portfolio that minimizes the risks of political and financial crisis and all risks of inflation.
The cons of Gold IRA accounts
• Due to the Tax exemptions applied, the account investments cannot earn your revenue through dividends, or interests.
• The Gold IRA custodian fees tend to be higher than the rates for normal IRA management fees. The cost is higher because the custodian takes charge of all purchases, transfers and transportation of all the gold in your IRA account.
• The Gold IRA accounts have investment restrictions. You are not allowed to save any other precious metal you may be possessing or any metal you purchase into the account. All transactions are strictly carried out under your guidance by the custodian.
• Theft or fraud may be a risk if you engage with an unreliable depository and custodian but this will be eliminated if you get a custodian who insures every financial transaction.
You have understood what role your custodian is playing and why it is important to ensure you pick the best in the market. There are several types of IRA custodians and they include;
If you have much interest in having an account that has FDIC insured securities. Banks do not have a flexible investment plan for private investments and the banks normally charge higher custodian fees for IRAs compared to the traditional brokerage firms.
If you choose mutual funds as a custodian, you will benefit from it through the flexible plan that allows you to invest in mutual funds.
Brokerage firms and insurance companies
If you plan to invest intensely in individual stocks, bonds, ETFs, annuities and mutual funds, opening your IRA account with either a brokerage firm or insurance will be an excellent choice.
What to look for when searching for a top Gold IRA custodian
1. Verify your potential custodian has an appropriate license for operation. You can ask the custodian to provide their license or you can check the Internal Revenue Service (IRS) who provide a list of all the licensed IRA companies.
2. Ensure that you have investment protection against the loss of your insured investments in the event the IRA company fails. The ideal custodian should have the Federal Deposit Insurance Corporation (FDIC) insurance protection.
3. The ideal custodian should offer you an option for extra investments. Your custodian should be able to offer an extended investment option. They need to be flexible enough to accommodate your investment ideas, even if not all, at least have some.
4. Your custodian should have competitive custodian fees. They should disclose their fees beforehand and you can compare their rates with others to make sure you are not overcharged unknowingly.
5. The gold industry requires experienced personnel for you to succeed in the industry. Your custodian’s period of operation is equivalent to their fees and the more the experience the higher their fees.
6. Enquire the time the company takes to process investments. If they have a slower turn around policy, engage the custodian to get an agreeable plan of lowering the custodian fees in the event the turnaround time required is longer.
7. Your custodian should be good in communication and support their clients. They should be able to take you through the expected process after you invest with them. The process ought to be smooth, transparent and show their dedication to customer support.
8. Go for a custodian who has a good client profile. You can ask the custodian to show you a list of their clients and check the online reviews about your potential custodian.
Choosing your ideal custodian with a lot or sieve can be hectic but below is a shortlist of the best their Gold IRA companies you can consider;
1. Orion Metal Exchange
Orion Metal Exchange has been operating in the industry for fifty years and they have mastered all market updates and trends regarding all gold investments. Orion has very competitive prices and they have the best gold prices. They also offer free shipping for all new accounts. The company has set up protective measures to protect your investment from a declining dollar and over expenditure of the government.
2. Patriot Gold Group
Patriot Gold Group has over thirty years of experience in handling precious metals. In 2016,2016 and 2018, Consumer Affairs has rated Patriot Group as one of the top Gold Dealers. Patriot Gold Group, has a short time turnaround for new investments and has no management fees. They also offer simple guidelines and support for opening an IRA account. The company has great reviews from their users and the most outstanding is their customer service which is very key in the industry.
3. Birch Gold Group
With over twenty years of experience in dealing with precious metals and Shortlist of the Best Three Gold IRA Companies, Birch Gold Group is a company that has been rated highly by the consumer organizations, investment professionals and clients. The company has invested heavily in communication and education with the investors and got Forbes Finance Council. Birch Gold Group exhibits high rating by the consumers for being very supportive and offering excellent customer support. In your first year of investment, you will not invite any fees for gold transfers above $50000.
Frequently Asked Questions
1. Is Gold IRA safe?
Yes. Gold prices move in the opposite direction of the paper assets and thus it secures your investment from the market trends that may affect the value of the other investments. A Gold IRA is protected by an insurance policy and that reduces the risks of losing your investments which is advantageous for a retirement investment. You need to be cautious in the first stages of choosing a custodian and a depository which will go a long way in ensuring your investments remain safe.
2. Can I use my existing IRA to invest in a Gold IRA?
Yes. Most retirement plans offer the user an option to convert their benefits into precious metals IRA, either way you will need to enquire with your respective administrator to explore this option. An exemption is common if the retirement plan is employer based. Consult with a precious metal advisor about the possibility of converting your IRA into a Gold IRA.
3. Is it expensive to have a gold IRA?
No. The cost of gold IRA and other precious metals is relatively the same as the common retirement plans. The annual cost varies from $160 to $200. Your custodian will advise you on your investments to ensure you do not strain in keeping up with your retirement plans but you stay up to date with all market trends that impact your Gold IRA investment.
4. Is there a minimum amount to transfer or roll over?
Yes. In most gold IRA accounts there is a minimum of $10000 required to transfer or roll over an IRA. If you recently established your account, the minimum amount of $5000 for non-transfer / non-rollover.
5. Can I take physical property of Gold in my IRA?
No. The gold purchased has to be kept in a bank or facility that is approved by the IRS. But if you decide to store the gold in your house, you will incur high storage charges
6. Can I utilize my IRA to buy gold?
Yes. You can convert your IRA funds by withdrawing them and investing in a Gold IRA. Nevertheless, ensure you check for all details concerning withdrawal since some facilities will charge you or tax you in the event you process an early withdrawal.
7. Can I have more than one IRA account?
Yes. You can keep a regular IRA account or have several gold IRA accounts. There will be no harm in having several active investments, it guarantees you a better future.