With a gold IRA, instead of investing in volatile stocks or bonds, your money is backed by more stable precious metals. A gold IRA service is a company that you contact when you are ready to invest in precious metals.
When shopping for a gold IRA service, you want to do your research so you fully understand the company’s fees and your buying options. Orion Metal Exchange is a company that takes the time to educate its customers so they understand the process and can invest with confidence. To learn more about what to look for in a quality gold IRA service, keep reading.
Considerations when choosing gold IRA services
To many, a precious metals IRA is new investment territory. When shopping for a gold IRA service, you will want to find a patient company that takes time to explain the process so that you have a firm grasp on all of the elements, from minimum investments to risks to storage to fees. The company should have a solid history with a high rating in customer satisfaction along with overwhelmingly positive customer feedback. Additionally, the service needs to listen to you and understand your savings goals so it can create the best strategy to achieve success.
Features
Precious metals
There is a variety of IRS-approved precious metal bar and coin products. Not every service offers every option. Some products pose greater risks. Look for a company that offers the product that is best suited for meeting your retirement goals.
Rollovers
Rollovers allow you to pay for your gold IRA using funds from an existing IRA account. This is an easy way to get started, and while it must be reported to the IRS, it is a nontaxable transaction.
Withdrawals
As with other IRAs, early withdrawals (before the age of 591/2) will be taxed and penalized. Additionally, after the age of 72, you will be required to make annual withdrawals.
Home delivery IRA
Although not typically recommended for reasons of theft, some individuals prefer having physical access to the precious metals that they own. A service that offers a home delivery IRA is what these individuals should seek.
Fees
After making the initial investment, which usually ranges from $2,000 to $5,000, there are a number of fees that a gold IRA service may charge. It is important to know and understand all of these fees to be sure you are getting the most for your money. A setup fee, for instance, may cost $50 or $100, but some companies will charge as much as $300 each year in maintenance fees. Additionally, there will be storage fees that may range from $100 to $300 per year, but if a gold IRA service charges other miscellaneous fees, such as a transfer fee, they need to divulge that fact up front.
FAQ
Q. Why is gold an important investment?
A. Gold is necessary to have a truly diversified investment portfolio. Traditionally, its performance moves contrary to paper investments — if stocks and bonds decline, the price of gold tends to increase.
Q. Is gold a volatile investment?
A. The price of gold can be volatile in the short term, but throughout history, it has always rebounded. This characteristic is what makes it a good hedge against inflation and other investment pitfalls.
Gold IRA services we recommend
Best of the best: Orion Metal Exchange
Our take: A full-service precious metals dealer that receives high marks for customer care and reliability.
What we like: Orion Metal Exchange offers a variety of services at reasonable rates. The company lists real-time pricing on its website and offers customers an IRA account with no setup fees.
What we dislike: There is no option to purchase online.
Best bang for your buck: Patriot Gold
Our take: A company committed to making sure the consumer is informed and taken care of so the process feels effortless.
What we like: Patriot Gold has been in operation since 1990 and handles all the paperwork and tracking to make sure the investor is getting the best precious metals for his or her IRA. The one-day turnaround on account setup is impressive.
What we dislike: In order to receive information, you must provide information — which may cause those only mildly curious to skip over this highly rated company.
Choice 3: Red Rock Secured
Our take: A highly rated service-oriented company with an A+ score from the Better Business Bureau that is dedicated to assisting investors of all experience levels.
What we like: This company offers free one-on-one consultation. For individuals who prefer a more hands-on approach, Red Rock Secured is one of the few companies that offers a home delivery IRA.
What we dislike: The website is lacking some key information (such as fees). To get the details, you will need to call.
Allen Foster is a writer for BestReviews. BestReviews is a product review company with a singular mission: to help simplify your purchasing decisions and save you time and money. BestReviews never accepts free products from manufacturers and purchases every product it reviews with its own funds.
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