Investing More Than $250,000 in Your IRA? Here’s What You Should Know

Posted By Ziga Breznik, Last updated: February 27, 2020

 

Investment Growth - Coins In a Jar

If you currently have more than $250,000 in your retirement account and you are considering a gold IRA rollover, read on. You can also read: “Behind on Your Retirement Savings? Here’s 5 Tips To Fix It!” or our full guide on rollovers here.

There are 5 very important factors you should consider before rolling over your existing retirement account:

  1. Account Fees
  2. Flat vs. Scaled Fees
  3. Storage
  4. Collectables vs. Bullion
  5. Company Reputation

Also Read:

securing investment

Account Fees

One thing you should be very careful about when choosing a IRA custodian is the fees that they charge. This could as well be the MOST important factor on which you base your decision.

When it comes to account fees, there are usually 2 main fee structures:

  • Flat Fees
  • Scaled Fees
What we recommend is that you make sure you are getting flat fees when doing a rollover.
 
Let us explain…
 
These stay the same and are not based on your gains. They allow you to grow your retirement savings much faster then scaled fees.
 
On the other hand, with scaled fees, your custodian increases the amount of fess as your retirement savings gain in value. For example, if you started out with $150,000 and grew to $300,000 and the fee was charged at 0.1% of the total amount, your annual fees would jump from $150 to $300 per year.
 
See the chart below to see the difference between having flat fees or scaled fees:
 

Retirement SavingsAnnual Flat FeesAnnual Scaled Fees ( .1%)
$150,000$150$150
$300,000$150$300
$1,000,000$150$1000
$10,000,000$150$10,000

Bullion vs. Collectables

If you are an uninformed investor, this is where most custodians will try to take advantage of you. If they sell you collectable or numismatic coins instead of the regular bullion eagles they get a higher commission.

If a company tries to sell you these coins to put into your retirement account, consider it a warning signal. Not only are these coins very hard to liquidate, you will end up selling them at a significantly lower value than you purchased them.

The government currently only allows certain precious metals that can be held in a retirement account. For your convenience, here is a chart of IRA approved precious metals:

IRA APPROVED GOLD BARS & COINS
IRA APPROVED SILVER BARS & COINS
IRA APPROVED PALLADIUM BARS & COINS
IRA APPROVED PLATINUM BARS & COINS
Purity: .995%+
Purity: .999%+
Purity: .9995%+
Purity: .9995%+

  • Valcambi Gold CombiBar

  • Australian Gold Kangaroo/Nugget coins

  • Johnson Matthey Gold Bar

  • American Gold Eagle coins

  • Austrian Gold Philharmonic coins

  • American Gold Buffalo coins

  • Canadian Gold Maple Leaf coins

  • Credit Suisse Gold Bars


  • Johnson Matthey Silver Bar

  • American Silver Eagle Coins

  • Mexican Silver Libertad coins

  • Royal Canadian Mint Silver Bar

  • Australian Kookaburra Silver coins

  • Canadian Silver Maple Leaf coins

  • Austrian Philharmonic Silver coins


  • Baird Palladium bars

  • Russian Ballerina Palladium coins

  • Credit Suisse Palladium bars

  • Canadian Palladium Maple Leaf coins


  • Isle of Man Noble coins

  • Canadian Maple Leaf Platinum coins

  • Australian Koala Platinum coins

  • American Eagle Platinum bullion coins

Storage Options

Another critical consideration is storage. When the time comes to liquidate your metals, you want to make it as easy as possible.

There are two main types of storage:

  • Co-mingled
  • Segregated

Co-mingled storage means that your precious metals are mixed with others in the vault. This might not be the ideal situation. When you want to liquidate your precious metals, a co-mingled storage could make the process difficult and confusing.

Segregated storage on the other hand is a much better option. It means your precious metals won’t be mixed with others – safely stored in their own area.

Company Reputation

This is another important factor to consider when choosing your gold IRA company.

Here is what we look for:

  • Lots of Customer Reviews
  • BBB Rating
  • TrustLink Rating
  • Featured in Authority Websites and Magazines link INC. and Forbes
  • Approved by 3rd party consumer protection agencies
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