IRA or Individual Retirement Account is one of the most popular forms of retirement savings and provides several tax benefits. There are several types of IRA plans that a person can invest in but one of the most popular is Gold IRA. The history of this unique retirement saving plan was envisioned with the 1997 Taxpayer Relief Act, which allowed investors to deposit precious metals such as gold, silver, platinum and palladium in the IRA. This is certainly much more advantageous as in this turbulent global economy as paper money isn’t what one can truly rely upon. As metals are not only more durable than paper money, you can certainly rely on them to have a significant value even if the currency takes a dip.
If you are thinking of making a Gold IRA investment, listed below are some of the most important things that you must consider before making a final decision.
#1 Look for a Licensed and Reputed Custodian
Surely, it would be a foolish thing to hand over your precious assets in inexperienced hands. The first and foremost question you should have for a custodian is whether they are licensed or not. Once you’re convinced of their authenticity you must also enquire the number of years they have been in this business. Check for the company’s track records and testimonials of existing clients to know their expertise in Gold IRA custody. The more established the custodian is,the safer your investments are.
#2 Inquire about the Custodian’s Fee and Gold Prices
Most people are aware of the mandatory deposit fees that various custodians charge. But, it is also certain that the fee structure and amount might differ between different providers. Hence, it is extremely important to know their fee charges instead of hoping for a standard amount that suits all. The custodian fee usually includes the charges for storage, shipping, application and processing fees, which must be paid by you. You must also learn about the price that a particular custodian offers for your assets and compare them to the current market prices to avoid being conned.
#3 Know Where Your Assets Will be Stored
It is common for several Gold IRA companies to use co-mingled vaults to store your assets that are shared by various institutions. While this might save a ton of expenses for the custodians and banks, it might be a particular safety concern for your funds. If a company offers to deposit and store your gold and precious assets in a co-mingled facility, then you should certainly reconsider your choice. Make sure that that custodian company stores your gold in a separate facility where it will not be kept along with the other client’s assets. Apart from this, your custodians must also have a considerable amount of experience in handling and storing precious metals.
#4 Look for the Custodian with a Good Customer Support
Handing over your precious gold to a company that doesn’t take your phone calls properly, should never be trusted. The main work and efficiently of a good Gold IRA custodian begins after the introductory paperwork has been completed. Regular updates about your investments and a 24/7 hotline for any queries are the important ‘must haves’ of a reputed Gold IRA custodian. If they do not respond to your queries properly or have an untrained staff answer your calls, you should certainly take these as red flags and reconsider your options.
#5 Check If they Offer IRA Transfers
If you have an existing IRA account, you can transfer and convert your regular IRA funds into Gold IRA and enjoy its several benefits. Nevertheless, you must inquire beforehand whether the company you have chosen does IRA transfers and rollvers or not. As most custodians use state of the art digital and electronic computing to manage their financial activities, the transfer process shouldn’t take any more than 48 hours. If you experience any delays in this process, it should be taken against the company’s efficiency and indicates poor management.
Following the relaxed taxation laws and the 2008 economic depression, people’s distrust in paper money and other fiat currencies has led to the popularization of Gold IRA. Following the above tips before choosing a worthy custodian will not only provides you with tax benefits and savings but will also ensure that you receive the full benefits without worries.