How to Properly Select a Gold IRA Custodian

One of the wise financial plans you can make is investing in a secure future and among the ways you can achieve this is by creating an Individual Retirement Account (IRA). Although you might be familiar with the traditional and Roth IRAs, you might or may not have heard of this less known gold IRA.

Gold IRAs are retirement accounts that enable individuals to invest in physical goals and other precious metals. A custodian in this picture is someone that is responsible for handling and managing those accounts and guiding people that want to invest to have a safe and secured investment that comply with rules and regulations of their states.

Selecting the right custodian is highly essential and not a decision that should be taken lightly. That's why this article prepared a comprehensive guide that will help you make a decision especially for those new to the IRA world and other people that want to change their custodian can consider this article as your roadmap.

Visit https://www.irs.gov/retirement-plans/individual-retirement-arrangements-iras to learn more about IRA.

Ensure that the custodian is properly licensed

Every individual retirement account must be handled by a custodian firm, the firm must be licensed by the Internal Revenue Service. The IRS publication 590 says that there are few numbers of entities eligible to serve investors as a custodian. This can be a credit union that is licensed by the Federal Government, a bank, a savings or loan institution or an entity that is approved by the IRS. The IRS license for custodians is available to the public therefore always make sure the custodian you choose is on a list.

Look for custodians with FDIC insurance for uninvested funds

In some situations, the IRS doesn't give licenses to custodians unless they pass the criteria for FDIC insurance protection. Still there are some financial institutions that don't have this license and mostly they have a reason for not obtaining this protection.

Click here to read more about FDIC insurance.

Ensure they offer most if not all types of assets that are allowed by IRS regulations

A custodian possesses approval on the final acceptable investment. But still, some try to limit the kind of investment that their clients can have. If you have this kind of individual in your list, it's better for you to remove them especially if their limitations don't match your requirements.

Look for competitive rates and fees

You should always look for competitive rates and fees and make sure the person you choose is not bleeding you dry. Request for a quote of the fee that they will charge you for their services. Usually, it costs around $50 to $250 to set up an account annually including flat and transparent account fee schedules. If you are charged more than this, you consider looking for another option

Ask how long they have been in business

Any custodian that you see with ample experience means they have been in the game for a couple of years. Their experience should always align with their fee structure as well. Ideally, you should consider firms that have been in business for at least ten years.

Their turnaround time for authorization and requests

Time is valuable especially when dealing with an IRA. If you wait for a long time, it may take a great deal out of your pocket. If you are waiting for a long time, then you should pay a lower fee.

They should offer ongoing support for their clients

Once you make the first investment, you must follow some processing protocols. The custodian will determine whether your investment is effective between the transactions. Check their ratings on Trustpilot, Yelp, or Better Business Bureau and ensure they have a good rating, if it's poor, you should consider another firm.

Check on the current client list

Among the ideal ways to know the reputation of the gold IRA custodians you intend to choose from is to check their current roster. For one thing, IRA gold custodians with good advice and transaction processing reports are highly likely to be an ideal pick. Work with a company that manages high net worth clients because it's very likely that you will fall in good hands, and they will take care of your assets properly.

Conclusion

Selecting the right gold IRA custodian is a crucial decision that requires careful decision. With so many custodians, it might be overwhelming to choose one that is right for you.

This article has explained the things you should look for when selecting a custodian so when it's time to make a decision, you will fall in the hands of a trustworthy person where your retirement savings will be safe and secured.