Gold Custodian and Broker
In order to put a portion of your retirement savings into a gold-backed IRA, you’ll need a Self-Direction IRA, as mentioned above.
However, for a gold-backed IRA, it is important you appoint a broker who will buy the gold for you and a custodian who will make a gold account for you and manage it.
The company you choose to create and manage the account will be responsible for storing or holding the gold you buy.
Custodians are usually either credit unions, banks, brokerage establishments, savings and loan companies, or trust companies.
All these establishments are recognized and authorized by the Federal agencies to facilitate your gold IRA and provide you with asset custodial services, which they also provide to other investors as well as financial advisors.
It is important to understand that custodians are not responsible for appointing a dealer for your IRA; that is your responsibility.
However, renowned and recognized custodians do have strong links with a plethora of metal dealers throughout the whole of the country – which means they may or may not choose to share their links with you.
However, the opposite can also happen; there are a handful of precious metal dealers that will recommend you appoint an IRA custodian.
But the choice of selecting and hiring a custodian is entirely up to you.
Due to the fact that investors are faced with a plethora of choices when it comes to gold IRAs, determining which company to go with can become increasingly frustrating. And that is primarily due to the fact that it is a specialized process that top-level brokerage companies refuse to offer.
In light of this, mentioned below are some very important pointers to take into account when you look for a custodian:
Transparency – First of all it is important you take an overall look at your costs upfront.
This will help you dodge a curveball, which is usually in the form of hidden costs that strike as soon as you make an investment.
Performance – It is paramount that you look for an establishment that has an extremely consistent and successful track record.
Look for a company that has positive reviews by objective third party agencies such as the Business Consumer Alliance (BCA) or the Better Business Bureau (BBB).
Moreover, don’t just stop here, look up at other customers have to say about the respective firm – are there any complaints registered?
Flexibility – There is no doubt about the fact each investor has a different approach, a different set of strategies, a different mindset, and different goals.
Look for a company that specifically provides services that match your core fundamentals of investing and philosophy. Don’t go for the one-size-fits-all methodology.
Accreditation – Always select an establishment that is highly accredited and reputed, and has all the fundamental requirements such as registrations, insurance, licenses, and bonds to ensure that your investment with them is impeccably protected.
Always ask them to furnish all verifications pertaining to their licenses and all other information they provide you.
On the other hand, there is another possible way to avoid having to waste your time looking for a custodian and steer clear of the costs associated with it – and that is through opening a ‘checkbook IRA’.
But it is worth mentioning that the Internal Revenue Service is looking for ways to scrutinize this form of IRA (which does not require investors to appoint a custodian).
On the other hand, you have to understand that establishing a checkbook IRA can be increasingly complicated.
First of all in order to open one, you need to be an LLC and have a business checking account, and these are just a couple of requirements.
But on the bright side the checkbook IRA enables you to buy and personally store Gold Eagle coins, which is a product of the US Treasury.
But before you jump to open a checkbook IRA, it is strongly recommended that you consult with a qualified financial advisor.