Even if you are not yet close to your retirement, it’s normal to wonder what you can do with the money you have in hand. In this economy, it is essential to go on your way to keep your retirement portfolio safe.
If you are unsure how to generate income with your money, the next best thing you can do is maintain its value. What is a better way to do that than to invest in precious metals?
Gold, silver, platinum, and palladium are significant investment assets for diversifying your funds. If you want to own bullion, you can hold them legally through a precious metals IRA.
What exactly does it mean? Not many people know how they work, but let’s find out how you can maximize your investments with the best precious metals IRA companies.
4 Top Gold IRA Companies of 2023 At A Glance
- Augusta Precious Metals: Editor’s Choice – Gold IRA Rollover Experts
- Goldco Precious Metals: Runner up – Best Prices and Customer Service For Gold IRA company
- American Hartford Gold: Great Price
- Birch Gold: All-Around Great Staff
#1: Augusta Precious Metals: Editor’s Choice – Gold IRA Rollover Experts
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Augusta Precious Metals stand out from the rest of the IRA companies for a reason. They are a family-owned business that implements a fee system that its clients can easily understand.
Augusta is a reputable gold IRA company that can cater to beginner and experienced investors. If you choose to work with them, they can provide you with everything you need to know before pursuing a precious metals investment. This includes the costs for setting up an account, the fees you are expected to pay for each transaction, and annual expenses.
This way, the clients will be prepared for what they would spend if they choose to work with them. They can also ensure that there will be no hidden charges and that they must pay the expected amounts.
One of the many reasons people prefer this company is that they are honest about your money. They will give you your money if you are unhappy with their service. That is how confident they are with their customer service.
Augusta Precious Metals also has price protection policies for first-time Gold IRA account owners and investors so they can maneuver on buying precious metals without too many risks.
The only complaint received by the company is about their product options and higher minimum investment cost. Augusta Precious Metals do not offer platinum and palladium products. They don’t have palladium and platinum products and require a minimum of $50,000 before you can start doing business with them.
Pros
- Transparent fee structure
- Great Prices on Gold and Silver
- Simple Gold IRA Rollover process for 401k, 403b, roth ira, traditional ira and other retirement accounts
- All products have reasonable prices
- A variety of Gold and silver products to choose from
- Received an outstanding A+ rating from the Better Business Bureau
Cons
- Limited options on palladium and platinum
- $50,000 minimum investment, but comes stellar service
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#2: Goldco Precious Metals: Runner up – Best Prices and Customer Service
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Investor education is the primary goal of Goldco, and they offer an in-depth program to ensure that all of their clients are always making informed decisions regarding their accounts.
If you choose to open an account with Goldco, you can get access to a library full of informational content related to precious metals investments, like eBooks, blogs, free guides, and webinars.
In addition, their website also has real-time price monitors and precious metals market analyses that are exclusive to their clients. The materials are in a format that is easy to understand.
Goldco provides a specialist that guides all of their clients regarding all processing and transactions in an accommodating way. However, their fees and prices are not accessible to the public. You will only know about them if you contact one of their company representatives directly.
Goldco Precious Metals require a minimum investment cost of $25,000 for their gold IRA investments. Although this is not as high as other gold IRA providers, this may still be steep for beginner investors.
0Pros
- Provides educational materials for its investors
- Fast processing on all transactions
- A+ rating from the Better Business Bureau
- Excellent customer service
Cons
- Needs more transparency with costs and fees
- High minimum investment cost of $25,000
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#3: American Hartford Gold: Good Price
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American Hartford Gold promises valuable features and services in addition to its reasonable fees and competitive prices. However, their customer service puts them among the best IRA companies in the country.
Most of the reviews received by American Hartford Gold are for their accommodating and professional way of assisting their clients. Their staff is knowledgeable about their features and services, and they can take action quickly to solve complaints.
The company has a hotline that is open 24 hours a day to accommodate anyone who needs help regarding their Gold IRA account. No matter what the clients need, American Hartford Gold will do its best to satisfy them.
On the other hand, the company is known for its slower transaction speeds. It may take three to five days before a transaction can be processed. They also limit their shipping within the U.S. only.
Pros
- Top-notch customer service
- 24/7 Hotline availability
- $10,000 minimum investment cost
- Provides information for its investors
Cons
- Some transactions may take days to get cleared
- No online price list is available
- International shipment is not available
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#4 Birch Gold: All-Around Great Staff
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Birch Gold Group excels in its full transparency regarding its fees. This is one of the primary things you should look for in a precious metals IRA provider. Aside from that, they take the time to have accessible information available to all of their clients.
When opening a Gold IRA with Birch Gold, you must find all the information on their website. Most of the information you need is available there, including the charges, fees, and transaction costs you will have to pay.
Such information on their website can help their clients get a better idea when there are price changes, and other potential clients would also be aware of their future transactions with the company.
Birch Gold Group uses a flat-rate fee structure, which may be a good idea for some people. Those who frequently purchase products from the company can maximize their spending. However, this puts people who buy rarely and in small amounts at a disadvantage because they will pay for the same transaction, shipping, maintenance, and storage fees.
Pros
- Accommodates custodians and depositories that are not associated with them
- Provides easily accessible information on fees
- A variety of products are available for palladium and platinum
- Flat-rate fees are outstanding for bulk and frequent purchases
Cons
- Long process for clearing transactions
- A flat rate is not ideal for infrequent buyers
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What Is a Precious Metals IRA?
Precious metals IRAs are among the safest options for protecting money against sudden inflation and economic downturns. Although putting all your eggs in this basket is not advisable, having a portion of your funds invested in this alternative investment asset can help secure your retirement funds years before retirement.
Before investing in precious metals, you should know that it works differently from a traditional IRA. Traditional IRAs accounts are funded with pre-tax dollars and grow tax-deferred.
With a precious metals IRA, your funds will be used to purchase physical metals like Gold, silver, platinum, and palladium. This is a self-directed IRA account, so the account owner will have control over essential investment choices.
Precious metals IRAs are also subject to a different annual contribution limit than traditional IRAs. People who prefer having more exposure to this type of asset should consider opening a self-directed precious metals IRA.
In a traditional IRA, you can usually only put up to $5,500 per year into the account, whereas in a precious metals IRA, you can deposit up to $30,000 each year. It also allows rollover and transfers from your existing 401(k) and 403(b) accounts. That makes this account a good option for people who want diversification in their savings.
Most traditional IRAs are designed to store paper assets like bonds, mutual funds, and stocks, as they are the most common type of investment for retirement accounts. However, there are benefits that you can get from investing in precious metals that are not available with them.
For some people, this IRA may be difficult to understand. They are managed by a custodian who keeps a record of your account transactions in a log book. The physical precious metals are also transported into depository vaults within the country to secure tangible assets.
Precious metals IRA are also subject to specific IRS-imposed rules and regulations. If you use your account against the rules, you can be liable for tax penalties of around 10% of your withdrawn amount.
You can expect to spend around $300 for this account’s maintenance, which does not cover the initial fees for purchasing and shipping the physical precious metals. However, it still depends on the company you choose to work with.
Some precious metals IRA providers cover the fees for the transport or waive the first few years of maintenance fees depending on the deals they are offering.
Advantages Of Precious Metals IRAs
Many are still unsure whether or not precious metals are a good investment option for them. Indeed, there are many reasons to do so that would benefit them in the long run. That includes the following:
Diversification of Assets
If you speak to an experienced financial advisor, they will tell you that diversifying your assets is the best way to remain afloat in any economy. That means you should invest your funds in multiple investments to spread a safety net for your portfolio.
Precious metals are not as volatile as other assets because they are not linked to the performance of certain currencies. They have a finite supply, and their high demand in different industries plays a significant role in their price.
You can purchase precious metals in the form of gold coins, bullion, and bars that come from different countries. Some examples of these assets are:
- American Gold Eagles
- Gold Buffalos
- Canadian maple Leaves
Some companies also allow the storage of digital currencies like Bitcoin. This can be good for people interested in or more knowledgeable about cryptocurrencies.
Opportunity
People often think that precious metals IRAs are limited to the four metals, regardless of their form. However, you can also use this IRA to invest in other assets closely related to precious metals.
One example of this is the shares of mining companies. Precious metals IRA allows its investors to purchase shares of companies that mine these metals. You can also use your assets to buy government bonds, and they will pay you back with interest after the dedicated time.
It is known that investing in physical precious metals does not produce income over time because it is mainly for safeguarding your funds. By adding paper assets, you can turn them into a source of passive income. This way, your money can keep its value while adding more until you can finally access it without penalty during retirement.
Your income can be exempt from or subject to tax delays depending on the IRS rules. Being exempt from tax delays will have you waiting to pay the taxes while being subject to tax delays means you won’t be required to pay any taxes on all your income earnings.
A Safe Way to Save
In any situation, saving up for the unknown is always better, but choosing where you will put your money is essential. Even if one asset has done an excellent job in the last ten years, you still need to consider its current standing and the potential drawbacks it might encounter in the following years.
In a volatile economy, there’s no telling how long the power of the dollar will remain. That is why you need to start investing your funds into something that would be able to retain its value even if the economy suddenly collapses. In that case, precious metals are one of your best options.
Precious metals are valuable not only in the investment world but also in other industries. Gold, silver, platinum, and palladium are useful in industrial applications, making them an essential part of the economy.
A small portion of your total fund invested in precious metals can be a good safeguard against inflation and other global crises that might affect other markets.
Control
One thing you should know about retirement accounts, in general, is that you are less likely to have control over your assets and how they are constructed. Most of the deductions are automatic monthly or annually, and you are only entitled to use your funds after retirement.
Individual retirement accounts are some of the best ways to save for your retirement, and it allows you to choose which products to include in your account instead of choosing between predetermined options. If you only want Gold in your IRA, that’s fine.
You can also include rare coins and bars in your account if they meet IRS-imposed standards.
Is A Precious Metals IRA an Excellent Way to Save for Retirement?
Generally, yes. Investing in Gold, silver, platinum, and palladium is an excellent way to save up if your main goal is to retain the value of your money. This type of account can contain minted coins and bars from different countries with various weights and sizes.
The United States must approve all bullion from different parts of the world before it can be allowed to be stored in an IRA. This is to ensure the quality and purity of the products.
In the 1990s, it was not allowed in the U.S. to sell things made in other countries. All you can invest in are American Gold Eagles, Gold Buffalos, and other U.S.-only bars and coins. Fortunately, that limitation was lifted in 1997 when the Internal Revenue Service allowed foreign currencies to be used for U.S. IRAs.
Still, it is essential to secure the quality of the product before purchasing and ensure that it meets the standard of the IRS. In this case, you can avoid all issues that might come your way. Gold products should be 99.95% pure, while other precious metals should be 99.99%.
Keep in mind that there are many fakes these days, and there’s no telling if you will be a victim of fraud or not. It is your duty as an investor to ensure all of your purchases are real. You can avoid such problems by working with reputable Gold IRA companies.
How Much Your IRA Should Be Made of Gold, Silver, or Platinum?
Most experts suggest that you incorporate around 5 to 10% of your retirement savings into precious metals, and you should diversify the rest across different assets and markets. However, that doesn’t necessarily mean it should only focus on physical precious metals.
Aside from bullions, you can also include stocks and bonds related to this type of IRA.
As an investor, your goal should be to spread your money around. Your assets should not be made only once if you want to maximize their growth potential. In some cases, focusing on physical precious metals alone is not enough.
Physical metals are great for retaining the value of the invested money, but you can also use them for their appreciating value. They are generally not the best idea for income generation, but that is possible with stocks and bonds.
Investing in mining companies that mine these metals is suitable because it can give you dividends as long as they have steady profits. You can only make money with physical precious metals by selling them to someone else or back to your IRA provider. However, it may come with fees and guidelines that would be bothersome.
It is also not true that precious metals are the best-performing commodities. Although they do a great job at retaining the value of the invested money and maintaining its demand in different industries, there are cases that their value falls below a profitable level.
There’s no such thing as a recession-proof asset, but you can make a plan by spreading your money on different markets.
Always invest your money wisely and make small investments in each market. Having a more comprehensive net will be your best option against economic downturns.
Gold IRA Rollover
A Gold IRA rollover is a process that allows individuals to transfer their existing funds into a new Gold-backed IRA. This makes it easier for people to fund a Gold IRA account when diversifying their portfolio. There is also another type of IRA that only allows a rollover, such as a Gold Roth IRA, because conversion is not permitted.
The process consists of withdrawing the needed funds from an IRA account and re-depositing it to a new IRA within 60 days under a different administrator or custodian.
Gold IRA Rollover vs. Gold IRA Transfer
When planning to open a Gold IRA, investors have two options regarding its funding: rollover and transfer. Gold IRA transfer is more secure and comes with a risk-managed strategy when moving the assets between savings accounts.
On the other hand, Gold IRA rollover has several rules and conditions that all investors must follow to complete the process. If they were to break any of the rules, they could be subject to IRS-imposed penalties.
To make it more straightforward, here are the differences between Gold IRA Transfer and Rollover:
Gold IRA Transfer Rules
- No 60-day duration rule.
- No penalties for early withdrawal.
- Not taxable.
- No annual limits.
- No withholding taxes.
Gold IRA Rollover Rules
- A 60-day rule applies, stating that the account holder must complete the funds’ transfer from their account to the new Gold-backed account.
- All distributed funds are subject to a penalty of 10% for early withdrawals if the account holder is under 59.5 years old.
- If the 60-day duration rule is violated, the distributed funds will be deemed taxable as ordinary income.
- IRA holders are limited to one rollover per year.
- No tax withholding if the rollover came from a personal IRA to another IRA.
Gold IRA transfer involves moving the funds from one custodian to another. The account holder will not receive any money withdrawn from their IRA, and they will transfer it directly through third parties. It is much simpler, and custodians will handle the process thoroughly.
Most people prefer a Gold IRA transfer because it can help minimize the margin of human error compared to a rollover. Sometimes, a rollover can be more difficult when you cannot complete the process within the period limit set forth by the IRS.
Failing to do so can bring upon a penalty from the IRS, while Gold IRA transfers are not susceptible to these kinds of error because it is handled directly by your custodian.
How To Rollover A 401k to Gold IRA
401(k) retirement accounts are employer-sponsored, so you will likely already have this if you are a working adult. If you are changing companies or just looking for ways to diversify your portfolio, you can roll over your funds into a new Gold IRA.
Here’s how you can do that:
Find a Gold IRA Company
The first step that you should do before proceeding with a rollover is to find a trusted Gold IRA company. There are many firms to choose from that provide different features, minimum purchase costs, and other special deals.
You have to ensure that the Gold IRA you will partner with can educate you on how the processes work so you are not plunging into the industry uninformed.
Remember that a good Gold IRA company will guide you through setting up your account and choosing the kind of precious metals you want as an asset and storage preferences while supplying you with all the necessary information.
They would also help you with all of the paperwork and transactions you will need to make. It is not an instant process, so you need to be patient. Your chosen Gold IRA company can act as your financial advisor with your investments, so you can do what’s best for your finances.
Choose a Gold IRA Custodian
The following Gold IRA rollover stage is finding a reputable custodian or administrator. As the account holder, you cannot hold your purchased Gold. It has to be stored in a secured depository, and your chosen depository will manage it.
Their primary responsibilities include:
- Managing your Gold IRA account.
- Providing documentation.
- Keeping a record of all of your transactions.
- Other services related to the IRS.
They are also assigned to coordinate the purchase and selling of the bullion you will invest in.
When looking for a reputable custodian, ensure they are structured to manage self-directed IRAs. With this type of IRA, you can oversee the assets. You are in charge of all the decision-making concerning your account.
Set Up the Account
After finding a custodian or administrator, it’s time to set up your account that will receive your rollover funds in your chosen Gold IRA company.
The firm and custodian should work together to help you acquire and sell the physical assets for your investment. They will manage the transaction and move your purchased precious metals to a facility authorized to store bullion and other physical assets to keep them secured.
Your custodian will ensure that your account complies with IRS-imposed regulations, specifically where your precious metals are stored. They will send all of the documentation to you and the IRS. They will also record the quantity of the precious metals purchased under your Gold IRA.
Some companies allow individuals to invest in precious metals at any amount, but some firms require a minimum investment cost for IRA-purchase precious metals. That is why it is essential to research before signing up with any company.
Rollover your Funds
After setting up your account, you can deposit the savings from your existing IRA to your new Gold IRA rollover account. The money will be transferred from your previous IRA trustee to your chosen custodian in a direct rollover. You can get help from your current provider, and they will connect with your custodian.
Purchase your Preferred Precious Metals
After your rollover, your Gold IRA provider will help you choose what physical precious metals to buy and transport them into a storage facility. Aside from Gold, you can also add silver, platinum, and palladium to your account.
You find it more advantageous to work with a Gold IRA firm with many connections in the industry. This way, you can carefully deliberate your options and develop the best financial plan.
Things To Look For In A Good Precious Metals IRA Company
When you are planning to open an account with a precious metals IRA company, you should consider their stand on the following factors:
Buybacks
It would be best if you went with a Gold IRA company that offers good buyback deals. This is the most reliable way to liquidate your assets during your retirement, and it would be great if your firm provides them at a reasonable cost. Buyback programs allow investors to sell back their physical assets to the company, and they can receive a fair market value for it.
The buyback process should be simple with the precious metals IRA company or charge any amount for the liquidation. They should also offer to arrange the shipment before asking their clients to pay.
Precious metals investors may contact their account executives when deciding whether to receive the physical assets as is or in cash. The distribution will be a check or bank wire transfer if you choose cash.
Gold IRA Fees & Cost
Another essential factor that you should look into is their costs and fees. Although most Gold IRA providers offer the same precious metals products, they could be different in the prices for their services.
Some firms require a minimum investment cost of as high as $50,000 before you can set up an IRA account with them. On the other hand, you can find companies that offer the same for a minimum investment cost of $7,500. However, it still depends on their plans and what is included if you choose to work with them.
It would help if you understood that the fees they will charge you for physical assets would differ from paper assets. Most of the charges are related to account setup, administration, commissions, markup, maintenance, storage, transportation, etc. It’s better if the company you choose to work with is transparent with its charges, especially on the markup costs.
When it comes to storage fees, it is often determined by the amount of precious metals investors own. Larger accounts will cost higher prices, which may vary for every company.
Setup fees are relatively standard and are often charged upfront before you set up the account. It could start at $50 up to a few hundred dollars. Sometimes, they could eliminate this fee if the investor makes a large initial deposit.
The custodians would charge maintenance fees for the administrative expenses. This is applied to all of the paperwork that they are handling. Most clients pay high maintenance costs, but it still varies.
As much as possible, you should work with an IRA company that does not hide its fees from the investors. Usually, you can see a list of costs on their website, or it will be discussed with you if you contact them directly. Nonetheless, be cautious if they are unwilling to discuss the subject with you or provide you with the charges you can expect and their purposes.
How To Open A Gold IRA Account
When opening an account, there are some differences between precious metals IRA and a standard IRA. For a self-directed precious metals IRA, these are the steps that you can follow:
Choose a Gold IRA Custodian
Most standard IRA companies do not offer alternative investment assets like precious metals. That is why you will need to find custodians, as they are the only people allowed by the IRS to manage your physical assets. They can be a bank, an IRS-approved institution, or an equity trust company.
The main job of a custodian is to manage your assets and make sure they are transported safely to your chosen depository.
Choose a Dealer
Once you have a trusted custodian, they can send your IRA money to your chosen precious metals dealer. However, choosing a dealer that meets your needs is just as important. You can do this by performing research and comparing the companies with each other based on their qualifications, experience, and deals provided to their clients.
The first thing you should check out when choosing a precious metals dealer is their legitimacy. It is better if they are a part of the Industry Council of Tangible Assets, the American Numismatic Association, and the Professional Numismatic Guild.
If you cannot choose one from the many companies you’ve come across online, you can check out the recommended companies in this post. You should also look for the reviews of these companies to see how satisfied their customers are with their services.
Choose Which Items to Buy
Once you’ve decided on a dealer, you can see what products are available with them that you can add to your account. Before you continue with this, you should know that the availability of certain precious metals may differ for each company. That is why it is essential to coordinate with your dealer to see what’s currently available.
Remember that the prices may fluctuate in case of a shift in the market, and you can’t blame that on the dealer unless they put a higher markup on the products.
Choosing the best-known companies in the industry is safer, but they usually come with a higher minimum investment cost that might not be suitable for beginner investors. Still, you can start with them if you believe their services will benefit you the most.
In addition to the American Gold Eagles and Gold Buffalos, you can also try adding Canadian Maple Leaf coins and Australian Koala Bullion Coins to your account. Some companies only offer gold and silver bullion, so be sure to choose a company that provides all four metals if you also like to invest in platinum and palladium.
After knowing how to handle the more common products, you can move on to the rarer and riskier bullion.
There are many types of bullion to choose from, and it’s all up to you which ones you prefer.
Pick a Storage
In some cases, your chosen precious metals provider is partnered with depositories where you can store your assets. It is essential to work with IRS-approved storage to avoid issues with your account and ensure their safety.
Some of the best ones in the country are the Brinks, International Depository Service, and the Delaware Depository Service.
Before choosing, you should consider which one is the closest to you and your budget. If you can afford it, you can opt for segregated-type vault storage where your assets will not get mixed with other people’s precious metals.
Finish the Transaction
Once everything is in place, you can now finish your order. After that, your custodian, Gold IRA company, and chosen depository will do the rest of the managing of your assets and accounts.
How To Make A Withdrawal From A Precious Metals IRA?
If you want to withdraw your funds from your account, there are two ways to do that.
The in-kind option sends your physical precious metals directly to your address. You may have to cover the shipping costs, but you will have all the control over how you want to sell your assets.
The second option is to sell it back to your IRA provider. Instead of getting the physical bullion, you will get its equivalent value based on the current market value and company markup.
There are tax rules that apply when withdrawing your money out of an IRA. If you fail to sell them within two months of receiving them, you will be required to pay tax penalties.
If unsure about the process, you can always talk to a financial advisor before taking your funds out.
Final Thoughts — Precious Metals IRA Companies
Setting up an IRA can be expensive and demanding, especially if you are relatively new to the scene. That is why you should invest your retirement savings with the best IRA company within the industry today. In that regard, that would be Augusta Precious Metals.
>>> Open Account With Augusta Precious Metals <<<
Almost all companies offer some sort of advantage to their clients but look closely at which of these features will benefit you the most. You should pursue a partnership with a company that puts the education of the customers as a priority and offers assistance every step of the way.
Augusta Precious Metals excels with customer service, assisting them with the utmost sincerity and patience. They prioritize their clients to reach their goals without hidden charges, and there are many other reasons why many people appreciate their services.
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