Tips for Saving Money on Gold IRA
open a gold IRA
If you plan to open an IRA account with gold, many financial advisors would applaud your decision. Physical gold has never been worthless, unlike “paper commodities.” When paper currencies and the stock market decline, gold retains its value or increases in value. Because of this, financial gurus suggest adding gold or other precious metals to your portfolio.
Before you open an IRA account with gold, look for ways to save as much money as you can on administrative overhead. There’s no reason to pay high fees if you don’t have to. Also, consider the type of gold you’ll buy – some forms are better than others because they sell at smaller premiums. Consider the following tips for saving money on a gold IRA before you open an IRA account.
Tips for Saving Money on a Gold IRA
Work with trusted IRA companies
Gold is a hot commodity, especially with the economy’s down spiral. More and more people are opening gold IRA accounts or adding gold or gold stock to existing IRA accounts. Unfortunately, as a result, there are a few unscrupulous IRA companies. Some charge hidden fees, some lack adequate customer service, and others simply lack experience and/or expertise.
Any and all of these shortcomings could end up costing you extra money. When you open an IRA account, your financial future is at stake. It’s imperative to take the time and do your homework when comparing and contrasting different IRA companies and custodians.
Request a first-year waiver of fees
IRA companies charge fees for opening and maintaining your gold IRA account, of course. Fees vary from company to company. The initial setup fee to open an IRA account might be $40-$50. The annual fee for maintaining the account is usually a percentage of the fair market value of the assets within the account. A fee of from 1/8 of 1% up to .08% of the value of the assets is charged, with a minimum fee of $35-$50. Most IRA companies have a maximum fee, regardless of the value of the assets in the account. This is usually between $150 and $250. As you can see, just shopping around for the best rates for setting up and maintaining your account could result in savings for you.
If you use physical gold commodity to back a gold IRA, you cannot personally hold the gold. It must be stored in an approved depository. Of course, a fee is charged for this, also. A typical fee for the first year’s storage usually averages between $50 and $100.
IRA companies also charge transaction fees every time you buy or sell. If you do so frequently, these charges can really add up. They generally range between $25 and $50, depending on the individual company.
Several IRA companies are willing to waive one or more of the fees associated with your IRA for the first year, especially if you open other types of accounts. When you’re shopping for and comparing IRA companies, be sure to ask about the fee waiver for the first year.
Type of gold to buy
As far as purchasing gold coins for a gold IRA, the only ones mentioned specifically by name are the American gold eagles. Other gold coins, however, are eligible. They must be legal tender and at least 99.5% pure gold. Actually, gold bars are generally a better choice for a gold IRA because the markup is less on bullion bars.
For IRA investing, the gold bars have to be at least 99.5% pure, but that isn’t usually a problem, as most gold bars are 99.99% pure gold. Gold bullion bars are available in different weights, and you should use the larger bars for funding an IRA, if possible. For example, you’d pay less of a markup on one ten-ounce gold bar than you would on 10 one-ounce gold bars. The same generally holds true for other precious metals, too. You’ll get more value for your money that way.
Ask for expedited processing
If you believe, like most people, that time is money, you want funding an IRA to be a quick and easy process. IRA companies that have experience and expertise dealing with gold-backed IRAs have streamlined the process to a trustworthy art. Be sure to ask for expedited processing.
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