Whenever you direct a transaction through an IRA, there is a transaction fee that is charged in order to administer the desired change in your plan. Sometimes this fee is included with rollovers and start-ups as well, depending on the administration. With CheckBook IRA, you get to direct the purchases directly and hold the tangible assets yourself… or so they claim. When the IRS specifically directs any IRA holding must be held by a custodian bank and the primary marketing line is a direct misrepresentation of what you must do, that’s enough for us not to recommend this organization whatsoever. 

How Much Does It Cost To Have a Gold IRA?

In order to get around the IRS laws about holding tangible assets, you must become a LLC and be registered as a custodian for holding your tangible assets that you want with your gold IRA. The current annual fee for having custodial authority is currently $136 per year. You’ll also have to create a business as an LLC in order to be officially recognized and the average cost of this is $1,200 for the first year. Your local community may also require a business license or specific permits for an added cost and because your LLC will classify you as a financial institution, your residential zoning laws may not allow you to run this IRA LLC out of your home.

It isn’t illegal, but you’ll be walking a fine line during the auditing process every year. It is important to make sure you’ve maintained separate books for your IRA LLC that do not mingle with your personal finances. Your IRA essentially becomes an at-home business that you’re running so that you can have retirement funds. The benefit is that you have much more control over what investments go into your tax-advantaged retirement account. The disadvantage is that you will need to maintain books because an LLC can be audited.

What Are the Types of Precious Metals Offered?

Because this is a self-directed gold IRA company that you’re being offered assistance in helping, there is no limit to the types of precious metals that are offered. You must simply make purchases using IRA funds of items that fit the specifications that the IRS has mandated for these specific assets.

This means gold, silver, platinum, and palladium are all available for investments as long as the rules for purchasing precious metals are followed. You will not generally be allowed to hold the assets from your IRA in your personal possession, so if you do invest into tangible assets, you’ll need a custodian to help you store your materials. 

How Is the Buying and Selling Process Handled?

Under this scenario, because you are the acting manager of your account, you have the authority to direct sales without needing to pay transaction fees to a middleman. You can purchase based on market demand or based on the trading value, but you’re also responsible for the receiving and shipping of each item. You’re also responsible for the insurance of the items in your possession and this may require a separate insurance policy.

This means you have more power to anticipate a good deal and take advantage of it, but it also means your IRA LLC will have more responsibilities to complete from start to finish in the transaction. Here’s some good news: a CheckBook IRA doesn’t have to be just gold or precious metals. It can also include real estate and other tangible investment options as well. As long as your personal funds are not combined with your IRA funds and all business spending to maintain those assets comes out of your IRA LLC, then there is an extensive list that is regularly updated by the IRS that shows you viable investment options for your tax-advantaged account.

What Timeframes Can Be Expected?

This is the one primary benefit that can be realized by using this organization for assistance. You keep transactions going in real time and can fulfill buy and sell orders immediately. This can be a tremendous asset when trying to realize the full value of gold, silver, or precious metals that you want in your portfolio.

You are the one who is always in control. If you want to purchase gold ETFs instead of actual gold bullion, then you have the power to make that trade. There are no administrative processing delays, added broker fees, or other costs that reduce the effectiveness of your tax advantaged account. You can even directly negotiate for the premium upcharge over the spot price on your precious metals to save even more money.

This also means that you must act in your best interest when completing an order. Many gold and precious metals traders will offer a shipping time of 5-15 business days for the items ordered. If the order doesn’t arrive in that time, you won’t have assistance in tracking down your order. The IRA LLC will be responsible for finding the order or resolving the issue with the precious metals provider.

Is a CheckBook Gold IRA Right For You?

If you have the business savvy and time to watch your portfolio around the clock every day, then there is a good chance that you could make CheckBook IRA work pretty well for you. If you don’t have the cash to form a LLC and don’t have the time to monitor markets, then a full service agency like Regal Assets is going to be a better option for you.

Why choose Regal Assets? Instead of needing to run a separate business while you’re working full time, the representatives at Regal Assets can help you grow your wealth every day with their many tools, product access, and expert advice. One call can solve all of your gold IRA problems so you can worry about something other than your retirement.

A tax advantaged retirement account is an easy and effective way to save for your retirement. A CheckBook IRA can let you have independence, but so does Regal Assets. That’s why we recommend their services if you want some help managing a gold IRA.