- 06 May 2023
- Bonds
- Precious Metals
- Comments: 0
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In 1989, GoldStar Trust began offering IRAs to its clientele for the first time. Goldstar promotes itself as an industry leader for IRA custodianship and self-directed investment accounts. It is made explicit on the website that the firm acts as a "trustee" and "escrow agent" for its customers.
GoldStar Trust provides retirement planning and investing services to its clients beyond standard investment vehicles such as mutual funds, bonds and stocks.
GoldStar Trust has 34 employees, according to LinkedIn. Nevertheless, the precise number of staff members is unclear. Three individuals lead the executive team that supports the staff.
GoldStar Trust firm is less well-known than some of its IRA competitors, but as we go through this research, potential investors will find that it concentrates on the same areas.
GoldStar Trust Company offers something unique: acting as trustee for a small bank bought in 1990.
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About GoldStar Trust and Its Management Team
The GoldStar Trust Company is widely recognized as one of the best IRA custodians. They manage over 60,000 retirement accounts totaling over $2.7 billion. In 2004, after being in business since 1989, Colonial Trust Corporation entered talks to combine with Happy State Bank's trust division.
Regarding financial institutions, Happy State Bank plays a pivotal role in the Texas Panhandle. After acquiring American Church Trust Company in 2006, GoldStar Trust Company decided to relocate its headquarters to Canyon, Texas the following year.
Information on the company's high management is scarce on the website. On the other side is a website section dedicated to the company's leadership, complete with photos and bios. They all have extensive expertise with non-traditional investment vehicles including real estate and IRAs (IRAs).
GoldStar Trust promoted Jeff Kelly to the president in 2020. Kelly has been working in the IRA Trust industry constantly since 2004. After nearly ten years with the company, Jeff Kelley left Equity Trust as its senior vice president. Kelley received a BA in Economics and Finance from Baylor University in 1988.
Considering how common it is for IRA custodians to hide their ownership details, the fact that this one does not is a reason for joy. This strengthens our confidence in the company's ability to deliver on its promises.
Compared to other IRA providers around the country, GoldStar Trust Company employs a very small number of managers and administrators. They fall short of the quality we've seen at larger businesses.
However, the leadership at GoldStar Trust Company, like most other small businesses, places a premium on providing individualized attention to each customer.
IRA Account Types at GoldStar Trust Company
GoldStar Trust Company offers several IRA account options for investors, including traditional IRA, Roth IRA, SEP IRA and SIMPLE IRA. Here's a detailed explanation of each account type.
Traditional IRA
A traditional IRA is a tax-advantaged retirement account that allows you to make tax-deductible contributions, which grow tax-deferred until you make withdrawals in retirement. You must be under 70 and a half to contribute to a traditional IRA and the maximum contribution limit is $6,500 per year (as of 2023). Withdrawals from a traditional IRA are taxed as ordinary income.
Roth IRA
A Roth IRA is a retirement account that allows you to make after-tax contributions, which grow tax-free and can be withdrawn tax-free in retirement. Unlike a traditional IRA, there are no age restrictions for contributions to a Roth IRA.
The maximum contribution limit is also $6,500 annually (as of 2023). There are income limits for contributions to a Roth IRA, however. Withdrawals from a Roth IRA are tax-free if the account has been open for at least five years.
SEP IRA
A Simplified Employee Pension (SEP) IRA is a retirement account designed for self-employed individuals and small business owners. It allows you to make tax-deductible contributions for yourself and your employees.
The contribution limit for a SEP IRA is much higher than a traditional or Roth IRA, at up to 25% of compensation or $66,000 (as of 2023). Withdrawals from a SEP IRA are taxed as ordinary income.
SIMPLE IRA
A Savings Incentive Match Plan for Employees (SIMPLE) IRA is another retirement account option for small business owners. It allows employees to make contributions and the employer must match those contributions or make a non-elective contribution.
The maximum employee contribution limit is $15,500 (as of 2023), with an additional catch-up contribution of $3,000 allowed for those over age 50. Withdrawals from a SIMPLE IRA are taxed as ordinary income.
Investment Options
GoldStar Trust offers a variety of investment options for IRA account holders. These options include:
GoldStar Trust Company offers a unique range of investment options for IRA accounts, which may not be available from other IRA providers. They provide customers with unconventional investment choices such as church bonds, Perth Mint certificates, charter school boards and secondary market annuities.
Additionally, they offer potential buyers the opportunity to learn about other investment opportunities not listed on their website.
However, we recommend considering other top-tier IRA providers for your investment needs. They have a solid reputation, a proven track record and a wealth of experience in the investment field. These providers also offer 24/7 customer service, promptly addressing any questions or concerns.
Opening Gold IRA with GoldStar Trust
Setting up a precious metals IRA with GoldStar Trust is a straightforward process that can be completed in three simple steps. First, you need to fill out the necessary paperwork and mail a check to GoldStar Trust. Two constant and variable factors determine the check's total amount. The two constant factors are GoldStar's yearly administration costs and storage fees.
GoldStar's yearly administration charge has a $50 minimum and a $250 maximum, which is 0.08% of the account's fair market value per year. GoldStar charges an $80 fee if the opening balance of an account exceeds $100,000.
The annual storage cost has a yearly minimum of $90 and an unlimited maximum, with a rate of 0.1% of the value of your precious metals. For instance, keeping a million dollars worth of precious metals in the bank will cost one thousand dollars annually. The annual storage charge is due yearly in the same month the metals were initially acquired.
GoldStar also charges a non-negotiable $25 opening fee and a $40 transaction fee each time a purchase or sale is made.
The second step in setting up a precious metals IRA with GoldStar Trust involves filling out paperwork to transfer money from an existing IRA or other qualified retirement plans.
Step three involves giving instructions to CMIGS on which precious metals to purchase. Once the metals have been delivered to the depository, Gold Star will pay CMIGS and your IRA investment will be completed.
Storage Options
GoldStar Trust Company offers precious metals IRA storage options through the Delaware Depository Services Company, a licensed depository for the COMEX. It is the location where GoldStar IRA precious metals are securely stored.
As mentioned earlier, the yearly storage charge for a precious metals IRA with GoldStar Trust is 1% of the account's total value, with a minimum of $90 and no maximum limit.
For instance, an individual with an IRA valued at $200,000 would incur yearly storage costs of $2,000. On the other hand, if the individual has an IRA valued at $2,000,000, the annual storage costs would be $20,000.
It's important to note that the storage costs are charged annually and are due in the same month that the metals were initially acquired.
GoldStar Trust Company ensures that the storage facilities are fully insured and the metals are stored securely with state-of-the-art security features to protect the precious metals.
With Delaware Depository Services Company as their depository, GoldStar IRA investors can have peace of mind knowing their assets are being stored in a secure and insured location.
GoldStar Trust IRA Fees
GoldStar Trust Company is known for being transparent about its prices and providing a full fee list online. Investing in mutual funds, money market funds and other assets traded on public markets is affordable, with an initial investment fee of $25 and an annual maintenance charge of $65.
For hedge funds and other non-traditional assets, GoldStar Trust charges an annual holding fee of $50 in addition to regular brokerage costs. They also charge a $25 fee per trade. While prices may vary for these assets, they remain reasonable compared to similar services.
Smaller IRA providers typically charge an annual fee of $100 to $200 for traditional investments. However, GoldStar Trust Company offers a broader range of investment options, including church bonds and loans.
Any account holder can invest in these bonds with a yearly maintenance fee of $45. Account maintenance and closure fees for in-kind and cash transactions range from $25 to $50.
Perth Mint Certificates are also available as an investment option, with an initial setup cost of $50. There is an annual management fee of $75 and an annual asset holding fee of $150. The cost for any transactions within the account is $40.
Real estate investment is possible with GoldStar Trust Company and there is a one-time account establishment fee along with annual maintenance fees. These fees are proportional to the value of the property held in the IRA. To begin investing, an initial fee of $50 is required. For properties valued under $200,000, the annual maintenance fee starts at $200.
For properties valued over $200,000, the annual fee is $300. There is also a $100 fee for acquiring or selling property and additional administrative-legal fees of $50 to $100 for papers that require review or are time-sensitive.
GoldStar Trust Company also allows clients to open IRAs with foreign banks to hold assets and cash in a foreign country. Fees range from $50 to $75 to surrender annuities or liquidate assets, with an annual maximum of $275 depending on the account size.
Why Add Precious Metals to an IRA?
Investing in precious metals through an IRA can provide several benefits.
Which Precious Metals Are IRA-Approved?
In addition to gold, other IRA-eligible precious metals include silver, platinum and palladium. However, like gold, the specific forms of these metals approved for IRA investment are subject to certain IRS purity requirements.
For silver, the following forms are IRA-eligible:
For platinum, the following forms are IRA-eligible:
For palladium, the following forms are IRA-eligible:
It's important to note that the purity requirements set by the IRS ensure that the precious metals held in an IRA are of a certain quality and are suitable for investment purposes. Additionally, the IRS has specific rules regarding the storage and handling of precious metals held in an IRA, which must be followed to maintain the tax-advantaged status of the account.
Final Thoughts
In conclusion, GoldStar Trust Company is a potential option for investors seeking a transparent pricing structure. Their fees are detailed on their website, which is not always true with investment firms.
However, as a smaller player in the market, potential clients may find that GoldStar Trust Company lacks the dominance and customer reviews of some of its competitors.
While the company promotes unique investment opportunities such as church loans and annuities, investors should consider other IRA companies that offer more comprehensive services and benefits. GoldStar Trust Company remains a viable choice for those seeking transparency and niche investment opportunities.
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