Financial Planners - How to Help your Client's IRAs Invest into Gold and Precious Metals

Many financial professionals have concerns about their clients holding precious metals in an IRA. Part of what we do at New Direction Trust Company is simplify and clarify the process so investors can make smart decisions about their IRAs.

There are three parties an investor needs to choose in order to hold a gold IRA: a self-directed IRA provider, a precious metals dealer and a depository.

self-directed IRA custodian like New Direction Trust Company will set up an IRA for your client that allows precious metals, provide education on IRS requirements and perform record keeping for the account. Investors can move their funds without a tax penalty to a provider that does allow precious metals if they currently have an IRA.

With a truly self-directed retirement account, your client can select a precious metals broker with whom they are comfortable. Due diligence is your client’s responsibility. Dealer fees, shipping and handling charges are also likely to be incurred.

Your client must choose a depository in which to store his metals. Clients should consider fees, segregated storage, facility location and/or insurance levels. The depository will charge for their storage services.

There are also strict regulations about which metals an IRA may hold. IRAs may only purchase gold, silver, platinum and palladium products approved by the IRS.

Financial professionals also may be concerned about their clients self-dealing assets. Indeed, an investor who’s IRA owns precious metals does not personally own the metals and cannot physically handle those assets. New Direction Trust Company provides education to investors so that they know what constitutes self-dealing and how to stay within IRS code.

After our client decides to invest his IRA in precious metals, it’s simple to get started. The investor will open and fund the account via contribution, transfer or rollover. Then he’ll select his dealer and depository. Then, he’ll direct the provider to fund the purchase and the metals will be sent to the chosen depository.

For more information about a precious metals IRA, please don't hesitate to give us a call at 877-742-1270 or send us an e-mail at info@ndtco.com.

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