Setting up a gold IRA can be daunting because it’s not as mainstream as other individual retirement accounts. Likewise, there are different rules and regulations to consider. You’ll have to research your options carefully, keeping in mind that this is a significant investment decision.
Today, you’ll learn some gold IRA custodian vetting tips to protect your assets, and choose the right company to assist.
The Difference Between a Gold IRA Company and a Gold IRA Custodian
Most people don’t realize that there is a difference between a gold IRA company and a gold IRA custodian. Let’s break it down for you:
- A gold IRA company primarily sells precious metals and helps people set up their self-directed individual retirement accounts.
- A gold IRA custodian manages all the assets within the precious metals individual retirement account. The entity must be IRS-approved.
Tips for Vetting Your Gold IRA Custodian
Choosing the right gold IRA custodian can be difficult. This guide will break things down for you, helping you know what to look for.
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Expertise
Many individual retirement account companies offer generic services and don’t focus on a specific type. Therefore, it’s often better to look for a custodian directly first. They will specialize in gold IRAs. When you take the time to find an entity that assists with your unique investment goals, you’ll enjoy more effective asset management.
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Experience
Gold IRA custodians and companies must establish themselves to showcase their expertise and legitimacy. Thus, you should look for entities that have been in the industry for many years or decades. Generally, they will have more asset options, smoother processes, and more experience.
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Asset Diversity
Diversification is crucial when you have a precious metals portfolio. Choosing the right gold IRA custodian means you have someone who will watch over your assets, managing them efficiently.
Typically, custodians partner with gold IRA providers, which makes it easier to fund the account with IRA-eligible metals like proof coins, bullion bars, and more.
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Personalization
It’s important to remember that your investment goals are different from everyone else. While you may wish to set up a gold IRA, there are so many precious metals available.
Having a gold IRA custodian ensures that your portfolio is managed efficiently. Likewise, they will work with the company you choose to purchase your precious metals. Usually, a one-size-fits-all approach won’t work, so you need an entity that focuses on personalization.
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Reputation and Industry Presence
When vetting a list of gold IRA custodians, it’s crucial to check out each one’s reputation. You can do this by reading reviews and ratings from Trustlink, the Business Consumer Alliance, and the Better Business Bureau.
In most cases, IRA custodians won’t directly deal with the consumer. Therefore, they don’t have ratings or listings on review directories and consumer complaint sites like the Yellow Pages and Yelp. Instead, they tend to partner with gold individual retirement account firms, brokers, and dealers.
Ultimately, the best way to test a potential custodian’s reputation is to find out how long they’ve been in business. Also, review how many clients and accounts they manage and their partnerships.
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Setup Fees and Annual Charges
Another important factor to consider when selecting a gold IRA custodian is its fee schedule. Here is a breakdown of what you might pay and when:
- Annual Maintenance Fees – Most custodians charge an annual fee to manage your account, which ranges from $80 to $250.
- Storage Fees – Custodians often charge storage fees, which are based on your account’s value.
- Setup Fees – This is often a one-time charge to set up your account.
- Other One-time Fees – Typically, custodians will charge a one-time fee for wire transfers to move funds around or take them out.
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Website Design and Presentation of Information
While it’s not the most important thing to consider, you should check the custodian’s website and design. A good site is easy to navigate and provides clear information about the brand’s offerings, management staff, and fee structure.
Likewise, a good website design will be aesthetically pleasing and make you feel welcome instead of stressed. Sometimes, site managers try to put too much information on one page. There should be multiple navigational tabs to easily access what you need.
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Consider Partnering With a Gold IRA Company and Custodian
Most custodians partner with gold IRA companies, financial advisors, investment firms, brokers, and dealers. This gives their clients an easy way to directly invest in the precious metals they prefer.
Often, brokers and gold IRA companies will waive the custodian fees if you choose to set up the account through them. Ultimately, this is the best way to go as an investor because you’ll keep costs low and avoid unnecessary hassles.
Use These Gold IRA Custodian Vetting Tips Well
Following these gold IRA custodian vetting tips will help you protect your investment and choose the right entity for the job.
There are countless custodians out there, and many partner with gold IRA companies. Going this route will ensure you save money. However, it’s still important to research your options and learn as much as you can about each entity.