Costs Associated With a Precious Metals IRA
When pursuing any investment opportunity, it is always wise to parse through all the associated costs beyond the purchase price. For instance, when buying property, investors must always consider the additional costs and ongoing expenses like property taxes, homeowner’s insurance, and inspection fees all add to the asking price the seller is trying to collect.
For investors looking at funding their IRA with a precious metal deposit, they should understand that the decision might come with additional associated costs that must be factored in to determine whether that proves a financially savvy decision. From application fees to storage expenses, these are some of the additional costs you will bear should you decide to go the route of funding your IRA with precious metals.
Additional Costs Associated with a Precious Metals IRA
Owing to the fact that the tax-deferred advantages of an IRA mandate that an approved IRA custodian be tasked with holding the account, you can assume the following fees and expenses will be present. Naturally, IRA custodians supply a detailed listing of their annual fees and other costs in their information packets, but should you not get the information that you need, you should certainly speak up to get the information you need to make an informed decision regarding your investment.
Account Application Fees
When processing an account application for your precious metal IRA account, the custodian will invariably charge an application fee to get the ball rolling on a new account or IRA 401K rollover. While you can expect the price range to vary from one custodian to another, plan to shell out approximately $50 for the pleasure.
Nothing in life is free, and that includes transaction fees for buying precious metals to fund your account. Generally speaking, these fees will vary but a $40 transaction fee is not beyond the pale.
The custodian of your precious metal IRA account is in the business of being a precious metals custodian to make a profit. Custodial account holders will charge you anywhere from $75 to a few hundred dollars a year to safeguard your precious metal IRA. In addition to safely securing your deposits, custodians earn their annual fees by maintaining the bookkeeping records and accounting functions related to your investment.
One of the predominant ways that you will fund your precious metal investments is through wire transfers used to pay for your goods through your dealer. Each outgoing wire will typically garner a $25 fee per each transaction.
Whether you choose to store your precious metal holding in a backroom safe in your home, or you hire the services of a precious metals depository, you will incur additional costs beyond the price of buying your gold, silver, platinum, or palladium deposits. Unlike merely storing your gold in a back bedroom closet in your home however, depositing your precious metals with an IRA account provides you the ability to leverage your investment with a tax-deferred account.
Any investment in precious metals, or any investment, has the potential to cost you money in associated costs. To maximize the size and value of your portfolio, you need to conduct your due diligence to find the lowest cost to your bottom line. In addition to finding the most affordable and trusted precious metal dealer, you also need to look for a storage venue that will not bleed your profits away in excessive fees and costs. A precious metal IRA account is an excellent investment vehicle once you have done your homework on all aspects of your precious metal purchase, so do not just jump into a precious metal IRA account until you know exactly what you are jumping into with your investment.