Fidelity Investments Review
Could they be the right investment representative for you? Here are some of the details of what managing an IRA with Fidelity is like right now.
How Much Does It Cost To Have a Gold IRA?
Market orders are a possibility, but this generally involves the purchase of an ETF – although some tangible assets can be purchased directly. That means you’re purchasing a paper representation of gold, sort of like a stock, instead of a tangible asset. Although priced similarly to real gold, what happens if there’s an emergency? Are people going to want the paper or are they going to want the real thing?
One nice aspect of having an online account with Fidelity Investments is that it is very easy to see if you’re on pace for retirement goals. Called myPlan, your gold IRA can be measured up to what your retirement needs happen to be so you can know if added investments into the tax advantaged account are required.
What Types of Precious Metals Are Offered?
In order to begin purchasing precious metals from Fidelity Investments, you will need to make a minimum initial investment of $2,500. Orders must be placed in either whole ounces or by a whole number of coins. Fidelity explicitly says this on their website: “The precious metals market is extremely volatile, and investing directly in physical precious metals may not be appropriate for most investors.”
It is clear that Fidelity encourages the trade of ETFs to most investors and discourages that trade of physical precious metals.
How Is the Buying and Selling Process Handled?
If you are purchasing precious metals, then there are fees that are based on a percentage of the gross value amount of the purchase. The minimum fee is 0.99% on the entire purchase and that applies to orders above $100k. For orders below $10,000, the fee is 2.9%. Selling precious metals out of the gold IRA at Fidelity also involves a minimum 0.75% fee on the gross value. Sales under $50k have a 2% fee.
What Timeframes Can Be Expected?
It is important to note that only 5 specific coins are permitted to be held within the context of a gold IRA at Fidelity Investments. Only American coins are allowed and include the American Eagle, American Buffalo, Silver American Eagle, and Platinum American Eagle. Bullion quality bars are also available for purchase.
Is Fidelity Investments the Right Gold IRA Company To Choose?
The advantage that Fidelity Investments offers is that they are a full-service brokerage firm that offers all available account options. It is easier to create multiple investment options for a diverse portfolio than with many other companies, but this isn’t necessarily an advantage to the individual who wants to begin a gold or precious metals IRA.
For a good, ethical company that listens to you, we fully recommend Regal Assets over Fidelity Investments. Although there are online trading advantages if you’re looking for stocks or ETFs to meet your precious metals needs in a tax-advantaged retirement account, there are disadvantages to the trading of physical, tangible items. You deserve to know how your gold IRA company is representing you and that’s what you’ll get when your retirement account is with them.