Self-directed IRAs allow control of one’s retirement
investments. Clients can benefit from self-directed IRAs by reducing their
taxes while enhancing their asset protection and estate planning. With this
insight, your clients can unlock their own investment expertise, making
tax-free or tax-deferred investments in assets they may know and understand
personally.
Many financial professionals have
concerns about their clients holding precious metals in an IRA. Part of what we
do at New Direction 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.
A self-directed IRA provider like New Direction IRA 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. You
can view the full list of allowed and disallowed metals here and share
that list with clients.
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 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.
