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Have you been thinking about diversifying your investment portfolio to give yourself some financial protection? If so, you may be considering setting up a Gold IRA. However, if you're like many, you don't want to commit to such a big financial decision without getting all the facts.
If you've already educated yourself about all of the benefits of investing in precious metals, the next biggest question on your mind probably has to do with the types of fees you'll be charged when you open a Gold IRA. Continue reading; in the next few sections, we'll take a closer look at the fees you should expect when you set up your new Gold IRA.
What Fees Should I Expect When I Set Up a Gold IRA?
OK, let's get right into answer your questions about the fees you can expect to pay for a Gold IRA. We've listed some general fee categories that are pretty consistent between different companies. These general fee categories include initial setup and administration fees, account maintenance fees, storage fees, commissions and coin markups, and additional miscellaneous fees.
However, every company is different, so you'll want to confirm the specific fees they charge before getting started with the process of opening your Gold IRA account.
Setup and Administration Fees
The first fee type that you'll find with most companies is an initial set up and administration fee. When you open a new account, your account representative will need to work with an IRA custodian to set up the transfer of funds, assist you in completing the necessary paperwork, and complete other administrative tasks. This fee covers all of these aspects of getting your new Gold IRA up and running. While it can vary from one company to the next, most companies charge about $50.
Annual Account Maintenance Fees
Another fee you'll find with most companies is the annual account maintenance fee. This yearly fee coverall all the management-related tasks performed by the company, such as preparing investment statements for you and working with you to add new precious metals to your account. This fee is typically between $75 and $100.
Gold IRA Storage Fees
Storage fees are unavoidable when setting up a Gold IRA. Home storage is not an option due to regulations established by the IRS, so every individual is required to pay to have their precious metals stored in an IRS-approved depository.
While yearly storage fees can vary, most are between $75 and $125. The depository where your precious metals are stored and whether you choose segregated or non-segregated storage will both impact the exact fees you'll have to pay.
Coin Markups and Commissions
Most precious metals providers mark up the cost of the coins and bars they sell. These markups ensure that they make a profit from each sale. You can compare prices between different providers, but they are generally pretty consistent. Some companies may also charge additional commissions or fees, so you may want to look into the exact details before making a commitment to work with a particular company.
There may be some additional fees, which can vary from company to company. For example, several companies charge a wire transfer fee (in the range of $25 to $35). A good practice to follow would be to reach out to any companies you are considering working with to find out more about the fees they charge.
Best Gold IRA Providers and the Fees They Charge
Now that we've given you an overview of the different types of fees charged, let's take a closer look at the specific fees from a few different precious metals providers. We've compiled information about the fees charged by Goldco, Birch Gold Group, American Hartford Gold, Augusta Precious Metals, and Noble Gold, five of the most trusted names in the industry.
Goldco is our top pick for those looking to set up a Gold IRA. The company is one of the most trusted names in the industry and offers exceptional customer service. Goldco customers must have a minimum of $25,000 to rollover into their new Precious Metals IRA. Here is an overview of the fees Goldco charges:
#2. Birch Gold Group
We also think Birch Gold Group is an excellent choice for those looking to open a Gold IRA. Below are the fees you can expect to pay as a Birch Gold Group customer (though these fees may be waived for the first year for those opening an account with a balance of at least $50,000).
#3. American Hartford Gold
You may also want to take a look at American Hartford Gold. The account minimum to open a Gold IRA is $10,000. American Hartford Gold customers may qualify to have their account fees waived for up to three years. Here is an overview of the fees they charge:
#4. Augusta Precious Metals
With its decade of experience in the industry and the numerous positive reviews from past customers, Augusta Precious Metals is another top company to consider. You must have a minimum of $50,000 to invest in your new Gold IRA to work with Augusta Precious Metals. Below are the fees you can expect to pay with this company:
#5. Noble Gold
Last, but not least, Noble Gold can also help you open a Gold IRA. Noble Gold comes highly recommended from many past customers and has earned high ratings from the Better Business Bureau and Business Consumer Alliance. The fees you should expect if you work with Noble Gold include:
Should I Still Open a Gold IRA Given all the Fees?
Now that you've learned more about the fees that are associated with setting up a Gold IRA, it is up to you whether these fees are worth it. There are a few things to consider that can help you make a final decision.
First, think about all of the benefits associated with diversifying your portfolio by investing in gold and other precious metals. These precious metals can serve as a hedge against inflation, are easy to liquidate when you need fast access to cash, and are highly coveted across the globe. All of these benefits will likely cancel out the nominal fees you will be charged for your account.
You should also remember that even with traditional investment accounts, you'll likely also be paying some fees. If you have your stocks and bonds in a managed account, you'll have to pay a percentage of your entire account to the management company. This can really add up, and can make the flat fees associated with Gold IRAs seem more appealing.
Fees are unavoidable when you're looking to open a Gold IRA. While the fees may make you question whether the Gold IRA will still be as beneficial, it is important to remember that you'll also be charged fees to have a brokerage manage your stock investments. With this perspective, the fees charged by most Gold IRA companies should not prohibit you from setting up an account with them. Many financial experts agree that investing in precious metals holds a lot of promise and can help you diversify your portfolio. The nominal account fees should not stop you from realizing the benefits of holding gold and silver in your retirement account.