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Tips for Choosing an IRA Custodian or Trustee to Hold Your Gold
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Last Updated on: 18th May 2023, 01:45 pm
There are a few things that every savvy investor should know about their potential gold IRA custodians or trustees in order to determine the best fit. Below are the most prevalent of these characteristics.
Table of Contents
- 1. Ensure that the custodian is properly licensed
- 2. Look for custodians with FDIC insurance for uninvested funds
- 3. Custodians should offer most, if not all, asset types allowed by IRS regulations
- 4. Look for competitive rates and fees
- 5. Ask how long they have been in business
- 6. Check the turnaround time for authorization and check requests
- 7. A custodian should provide ongoing support for its clients
- 8. Check on the current client list
1. Ensure that the custodian is properly licensed
All individual retirement accounts must be held by a custodial firm that is properly licensed by the Internal Revenue Service. According to IRS Publication 590, there are only a few types of entities that are eligible to serve investors as a custodian, including a credit union that is federally insured, a bank, a savings and loan institution, or an entity that has been approved especially by the IRS.
The licensing for custodians of IRAs is publicly available and every gold investor should be sure that the custodian that he chooses is on this list.
2. Look for custodians with FDIC insurance for uninvested funds
In most cases, custodians cannot become licensed by the IRS without also passing muster for FDIC insurance protection, but there are some types of financial institutions without this insurance. There are very few reasons to give up this kind of protection, however.
3. Custodians should offer most, if not all, asset types allowed by IRS regulations
The custodian has approval over the final acceptance of an investment. However, some custodians try to limit the investments of their clients. If their limitations do not match your requirements, that custodian should be removed from your shortlist.
4. Look for competitive rates and fees
Be sure that your custodian is not bleeding you dry on the side. Ask for a full range of the fees that you will be charged for the service. A regular account setup fee and maintenance fee might range between $50 and $250 per annum with flat and transparent account fee schedules. Any more than that and you should consider looking elsewhere.
5. Ask how long they have been in business
Any custodian that purports to have experience must have been in the business for a number of years. The experience of the custodian should also be in line with its fee structure. Typically, firms that have been in business for ten or more years are worthy of your trust.
Time is money, and time is especially important when dealing with an IRA. A long waiting period can take a great deal out of your pocket. Longer wait times should be reflected in a lower fee structure as well.
7. A custodian should provide ongoing support for its clients
After the initial investments have been made, there is still a great deal of processing that must take place. The custodian that you choose will determine the effectiveness of your investments between transactions. If a company has poor ratings on Trustpilot, Yelp, or the Better Business Bureau, consider searching elsewhere.
8. Check on the current client list
One of the best ways to determine the reputation of a custodian is to take a look at its current roster. Although the success of each individual investor is mostly determined by individual actions, the custodian tends to breed success through good advice and transaction processing. If a company manages high-net-worth clientele, chances are that the company is in good hands and can take proper care of your assets.
For instance, one of our top-ranked precious metals firms is Joe Montana's own Augusta Precious Metals.
Yes, the Hall of Fame quarterback invests in precious metals for his retirement—and you can too. With low fees, best-in-class customer reviews, and a one-of-a-kind “Most Trusted Gold IRA Company” award, Augusta ranks among the best gold investment companies in America.
To get started, check out our full review of Augusta Precious Metals here.
Or, jump right into the action by requesting a free info kit from Augusta today.