Goldco Review Summery
If you have been keeping a close eye on the stock market recently and witnessed it plummet, you might be worried about investing your hard-earned cash in such volatile markets. Understandably, I had similar concerns, and this led me to turn to precious metals.
By investing in gold, I was able to provide my nest egg with an insurance policy against the uncertainties of the stock market. With this kind of investment, one is able to hold an asset whose intrinsic value has held true for thousands of years.
Finally, I was able to find an investment that wasn't subject to the effects of a financial crisis, and that provided a safety net against inflation. Fortunately, Americans can now use gold and other precious metals as securities in IRAs thanks to an amendment made by the Congress in 1997.
Goldco is one particular company that provides gold and silver IRAs. In this Goldco review focuses on their business and what they have to offer.
Who Exactly is Goldco?
Initially known as the Heritage Gold Group, Goldco Direct LLC was established in 2006 by Trevor Gerszt. This means that the firm has 14 years of experience dealing with precious metal accounts.
Over the course of this time, Goldco has been able to grow its account listings. Additionally, it has garnered a number of reviews from both clients and consumer watchdogs.
We will take a closer look at these reviews later on.
What is a Precious Metals IRA?
Goldco's precious metals IRAs operate in pretty much the same way as IRAs investing in stocks and mutual funds. As per the IRS requirements, one is only eligible to make penalty-free withdrawals once they have attained 59 and a half years old.
In traditional IRAs, you will begin making the mandated annual withdrawals once you reach 72 years. Same as with a brokerage IRA, there isn't a guarantee on the value of the holdings in a precious metals IRA.
Based on market conditions and numerous economic factors, the price of gold and silver tend to rapidly change, just like other investment vehicles such as stocks and options. However, you still have to consider that for over a millennium; gold has always been considered a store of value. It is a safe haven asset for investors.
Gold typically has a natural price floor. But if you prefer to invest in silver, you can set up a silver-only IRA, or preferably a combined gold and silver IRA.
IRA Approved Silver and Gold Bullion
Due to government restrictions on precious metals IRAs, there are certain kinds of gold and silver that you can't buy in your Goldco retirement account. For instance, any gold product that you invest in for your retirement accounts should have a minimum fineness of .999.
This also applies to silver. Additionally, you aren't allowed to place any gold or silver that you currently own in an IRA. You are required first to open an IRA and then buy coins to add to it. Goldco is presently offering several options for purchase, and they include:
– 2017 Lucky Dragon Silver. This coin is obtained from the Royal Canadian Mint. It contains an ounce of silver, and it is 99.99% pure.
– 2017 Australian Saltwater Crocodile Gold Coin. It is a quarter-ounce coin that originates from the Perth mint. It is four 9's fine (0.9999).
– 2019 1/4 ounce Lunar Pig Gold Coin. Obtained from the United Kingdom's Royal Mint, this gold coin has a face value of £25.
Due to the government's regulations on precious metals IRAs, Goldco doesn't allow the storage of coins at home. You are required to store them at a professional storage facility. Fortunately, Goldco has established partnerships with several of them.
Proper Storage of Your Precious Metals
As discussed above, the home storage of coins isn't permitted. The coins must be stored with a third party. This also means that Goldco, too, doesn't have the mandate to store these metals.
Goldco clients are able to choose from several storage companies. Goldco recommends Delaware Depository. The company boasts a fortified facility with Class 3 vaults, electronic security systems, and insurance from Lloyd's of London underwriters.
The two other recommended options are IDS in Dallas and Brinks in Salt Lake City. The facility in Dallas is the only one that provides segregated storage. However, you can still choose any other facility of your liking if the ones recommended by Goldco don't appeal to you.
Pricing and Transaction Minimums
Goldco's precious metals IRA accounts are required to pay an annual storage fee. The yearly charge for non-segregated storage is $100 and $150 for segregated storage. Furthermore, there is an annual $80 IRA maintenance fee. But this fee is subject to an increment of $50 once the account reaches $100,000.
Besides the annual charges, there are also one-time fees. To set up an IRA account, you will be charged $50 and keep in mind that there is a $30 fee for depositing funds through wire transfers.
By combining all these charges, we've found that a Goldco IRA with non-segregated storage will cost you $260 for the initial year (setup charges, wiring fee, yearly fee, and first-year storage fee) and $180 for every other year as long as there aren't any additional costs.
Even though all these costs might seem like a lot, it is worth mentioning that regular taxable Goldco accounts don't bear any fees. This means no start-up costs, yearly fees, or storage costs.
The minimum starting balance for an IRA account is $25,000 and $3,500 for regular taxable accounts.
Precious Metal IRA Fees
– Setup Fees $50
– Yearly Admin Fees $80
– Annual Storage Fees $150 (Segregated) / $100 (Non-Segregated)
– Minimum Starting Balance $25,000
– Recommended Depository Delaware Depository
After operating your IRA for some time, you will definitely want to start the process of liquidating your holdings. Again, remember that you will be expected to commence withdrawals once you reach 72 years old.
One option is to sell these holdings to a coin dealer or other gold or silver buyer. The clients of Goldco are at liberty of doing this.
However, one thing that makes dealing with Goldco really great is the option to directly sell your coins back to Goldco. By going with this option, you are more likely to receive a higher price. Thus, it is a good thing that they have this option.
Rankings, Complaints & Customer Reviews
Considering that Goldco has over ten years of experience in the precious metals industry, it has been able to garner several reviews. For instance, the company has an A+ rating at the Better Business Bureau, which is the highest possible rating.
Goldco has been a member of the BBB since 2011. In order to qualify for BBB accreditation, businesses have to show transparency, reliable customer service, clear and honest advertising, dedication to customer privacy, and a solid track record in its respective industry.
At the moment, the Business Consumer Alliance (BCA) has awarded Goldco Direct an AAA rating, which is quite a difficult rating to attain.
Goldco also has a perfect five stars out of 5 on TrustLink, which isn't a mean feat.
The company has a rating of “Excellent” at Trustpilot, which is the highest score possible. At Trustpilot, there are 496 reviews on Goldco's profile, with their average score being 4.85 out of 5.0.
Inc. Magazine named Goldco the #1 Gold IRA provider in the United States. It doesn't get any better than this.
What are the Benefits & Downsides?
– Reduced Annual Fees
– Multiple Storage options
– High Rankings
– Excellent Customer Reviews
– High Authority
– Quality Customer Reviews
– High Minimum Starting Balance
– Can't Setup an Online Account
Rolling Over Your Retirement Plan
In case you have an old retirement plan from a past employer, for example, a 403(b) or 401(k), then Goldco can help you roll it over into an IRA.
First, you need to set up a Goldco IRA. After you have opened your new account, you will need to talk to a Goldco IRA specialist and ask for the funds in your old account to be transferred to your new account. This is often done through a direct or an indirect rollover.
In the case of a direct rollover, the funds from the custodian of the first account are transferred to the custodian of the second account. On the other hand, in an indirect rollover, the account is closed, and the funds are sent to you. IRS regulations stipulate that the funds have to be deposited into your new retirement account within 60 days.
Failure to do this ends up with you having to pay fees and taxes. This is why Goldco highly advises clients to select the direct rollover method.
Step 1. Begin the process of setting up a Goldco account by filling out an application form at goldco.com or contacting a support representative at 877-589-1223.
Step 2. Schedule a session with an IRA specialist to go over your options.
Step 3. Talk to an IRA expert who will collect your details to finish the application process, create an account, and transfer the funds.
Step 4. Once you have added funds to your new account, you will then talk with the Account Executive to select the metals that will be bought and held in your account.
Resources for Learning
Might you be looking to invest in silver and gold for retirement but still need some more information before making a final decision? Goldco has provided an educational section on its website that you should check out.
There is a tab called “Knowledge Center” on the top menu, where you can find plenty of useful resources that offer a deeper look at how Goldco's taxable and retirement accounts operate for precious metals investments.
There are a number of e-books that you can download on the site for free. Most of them discuss the risks of investing in the current financial markets. Here are some two examples of what we found:
– The Stock Market vs. Precious Metals
– How China Will Destroy Your IRA or 401(k)
The educational sections also have multiple videos covering a wide range of topics, including the advantages of tangible assets, the risks of big banks, and the uncertainty of the U.S. dollar.
It doesn't stop there; the Goldco website also has a blog. There are many articles on there, some of which are quite recent, which is definitely a good sign. They cover plenty of topics such as the 2020 stock market crash, possible problems likely to affect America's bond market, and the recent decrease in the Federal funds rate.
Goldco also uses the website to publish spot prices for precious metals. This way, you are able to stay updated on the current worth of your account.
“White-Glove” Customer Service
Goldco Direct has representatives at hand ready to respond to all your questions and concerns that you might have concerning your account. The firm's normal operating hours are 8:00 am to 5:00 pm, from Monday to Thursday and from 7:00 am to 4:00 pm on Fridays.
Contact Goldco at (877) 589-1223 or fill out the online form to get in touch with our team. Alternatively, you can always send the Goldco team an email at firstname.lastname@example.org.
If social media is your thing, then you can reach out to them through their Twitter account or Facebook page.
Who Should Invest With Goldco?
Goldco's offerings are suitable for persons who have concerns regarding the future of the U.S. dollar, the uncertainties of the stock market, or the likelihood of financial crises in the future.
In case you prefer to hold tangible investments rather than corporate securities, then Goldco is definitely a great alternative. Stocks can plummet 80%, 90%, and sometimes even down to zero dollars, as history
has repeatedly shown. However, gold just doesn't have these kinds of risks. Gold has a natural floor price and will never go down to zero.
In case you hold some stocks in your portfolio, it is important to diversify in order to minimize the risks involved. By adding gold into your portfolio, you will establish an insurance policy in case the market crashes.
In case you are about to retire or have already retired, then you can greatly benefit from gold's long-term security. Considering that this precious metal can't just be sold to another purchaser for pennies, it offers a certain degree of safety to a portfolio with plenty of individual stocks.
Goldco Review – The Take-Away
When you take into account the stock market crashes of 2008, 2002, and now most recently 2020, then the risks of investing in the financial markets become more apparent. As shown, one of the best ways of minimizing these risks is to diversify your investment portfolio by incorporating safe-haven assets such as precious metals.
Goldco understands the challenges of investing in volatile markets and has provided a viable solution. While the total costs for a retirement account are a bit high, the required starting balance keeps the amount low in terms of percentage.
Alternatively, you can set up a taxable account and avoid all these charges. After all, you just want to safeguard your financial future, and Goldco provides multiple options for exactly that.
- Address: 21215 Burbank Blvd #600, Woodland Hills, CA 91367-7091
- E-Mail: email@example.com
- Website: http://goldco.com/