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TD Ameritrade stands out as a rare full-service broker excelling in nearly every aspect. It charges no fees or commissions on trades, and its high-quality trading platform includes a user-friendly mobile app.
The company offers outstanding educational programming, catering to both novice investors learning the ropes and seasoned traders taking diverse positions. This rich investment education content makes TD Ameritrade a magnet for new investors.
Additionally, their website's ease of navigation adds to the overall positive experience.
But does TD Ameritrade provide a precious metals IRA that can hold physical gold and silver?
Read on to discover the answer.
Before we get started:
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Who Should Use TD Ameritrade?
TD Ameritrade is a major brokerage house in the United States. It offers different platforms for investors with various levels of expertise. Their standard mobile app and website have a nice and intuitive user interface.
Whether you are an active or a passive investor, you will find the platform easy to navigate. For active traders, there is a platform called "thinkorswim" that is more appropriate for them because it has tools for screening, charting, and sophisticated analytics.
Therefore, overall, the different platforms and services from TD Ameritrade make them a good broker for active and passive investors as well as casual and day traders.
Who Should Not Use TD Ameritrade?
Serious, long term investors that are looking to protect their wealth from the ravages of inflation with a gold IRA that is allowed to hold physical gold and silver, should not use TD Ameritrade because they do not offer these types of accounts.
But do not worry, at BMOGAM Viewpoints we have researched nearly every company in the precious metals industry have a made a list of the handful of best options for investors that are looking to diversify and minimize their risk with a gold IRA.
What is a Gold IRA?
IRAs, or individual retirement accounts, allow you to save up for your retirement. These have been in existence for many decades.
The traditional types of investments that people hold are stocks, bonds, and cash.
In the 1990s, gold IRAs started to come on the investment scene. These are self-directed IRAs, and they enable investors to invest in physical gold, silver, platinum, palladium, and other types of precious metals.
There are also self-directed IRAs that let you invest in real estate, art, and cryptocurrency.
A gold IRA works like a traditional IRA. You can contribute pre-tax funds and defer taxes on those funds. They follow the same rules as the traditional IRAs in income limits, maximum yearly contributions, and liquidation processes.
Gold IRAs are more complex to manage than traditional IRAs. For one thing, the gold or precious metal that you own must meet a standard of fineness as determined by the IRS.
The IRS only allows certain gold products like coins, bars, and bullion, and they must meet the requirements of the IRS. Even if you have high-value gold jewelry, the IRS does not allow those to be part of your gold IRA holdings.
The gold in your gold IRA must be stored in an approved depository. You don't have the actual gold in your physical possession. If the gold is not stored in an approved storage facility, the IRS might disqualify your gold IRA.
Since a gold IRA is more complicated to manage, the fees are higher when compared to that of a traditional IRA. You must select a company that has experience with precious metal IRA products.
These special IRA providers charge fees for setup, administration, and storage. They also charge a commission.
The main advantage of gold IRAs is that they preserve your wealth against inflation. It is a good way to add diversification to your retirement portfolio. A reputable gold IRA provider can guide you in maximizing the benefits of your gold IRA.
Why Should You Invest In a Gold IRA?
If you want something that will diversify and lower risk in your retirement portfolio, setting up a gold IRA account is a good option.
Even though the price of gold fluctuates from one day to another, when you look at the price trends of gold over the past years, the value has an upward trend.
This is true even during times economic instability.
For this reason, gold can give you better peace of mind that the gold's value can be preserved for your retirement no matter how the economy looks.
No investment is without risk, and gold IRAs are no exception even though, historically, they are more reliable. It is a good way to diversify your retirement portfolio.
They won't earn dividends like some stock funds, but they will hold their value during a recession or when there is high inflation. When the value of paper money goes down, the value of gold will usually go up.
Some investment experts don't speak highly of gold or precious metal IRAs because they charge higher fees, they are under many restrictions from the IRS, and they are more complicated overall.
They feel that if you want to own precious metal, just purchase gold and silver bars outside of an IRA. Then, you won't be subjected to any rules around where you should store them and how to manage them.
If you want your retirement portfolio to have some diversity, then gold IRAs are still a solid alternative. You can just place a small part of your retirement funds, no more than 10%, into this option.
If you roll over your funds to a gold or precious metal IRA, you won't be under the annual IRS limit of $6,000 ($7,000 if you are over 50 years old).
Before you contact a gold IRA company to make the move, consult with your financial advisor to see if this option is in line with your retirement investment goals.
What About Purchasing Gold Coins or Gold Bullion?
The IRS has stringent regulations over what precious metals qualify for your gold IRA. The gold must be 99.5% pure. Silver has to be 99.9% pure. Platinum and palladium need to be 99.95% pure.
The company that you choose to set up your gold IRA should use their expertise on the subject to guide you in your purchase.
In the U.S. the American Eagle bullion coins issued by the Mint are popular. Other choices that are approved by the IRS are the Canadian Maple Leaf coins and Australian Koala bullion coins.
The options that are not allowable by the IRS for funding your precious metal IRA are the British Sovereigns, German Marks, Swiss Francs, rare coins, and collectibles.
Many investors prefer coins over bars because they are easier to move and sell. They don't need a lot of security during transport, so the delivery fees are lower. Their designs also make it harder to counterfeit.
The gold IRA company gets a higher commission on bullion than coins. A reputable gold IRA company will not subject its clients to any hard sell. If you ever feel like the company is pressuring you to buy, you should consider taking your business elsewhere.
The bottom line is that you should make your selection based on your preferences. Read the literature that the gold IRA company gives you to educate yourself first. Ask the company representative questions and make the most of their expertise.
Learn as much as you can until you feel comfortable making an informed decision. Then, make your choice.
Where Should You Store the Precious Metals in Your Gold IRA?
You don't have much flexibility on where you are allowed to store the physical metal that backs your gold IRA. You won't be allowed to store them in your own home even if you have the most sophisticated security system set up in your home.
The IRS has specific rules around how the precious metal that backs an IRA should be stored.
The IRS dictates that these precious metals must remain under the custody of a trustee. An example would be a bank that is insured by the federal government, a savings and loan, a credit union, or a facility that the IRS approves.
These institutions can manage the precious metals as detailed individual assets or as a single, shared fund.
The depository can be a facility that is endorsed by a commodities exchange. If it is not a bank, it has to present proof to the IRS that they comply with all rules and standards around accounting, reporting, security, and auditing.
The approved depository must have a state-of-the-art security system that can detect movement, sound, and any level of vibration. Locks should have a timing feature so that they can automatically relock after a certain length of time.
The depository should be monitored around the clock, 24/7.
On top of the highest level of security, the depository must carry adequate insurance, often up to $1 billion.
Any gold IRA company that we recommend has a stellar reputation. Beware of any company that suggests a storage arrangement that appears not to comply with the IRS, including suggestions of storing it yourself.
If a storage facility is not approved, it results in the IRS disqualifying your gold IRA. Reputable gold IRA companies always use IRS-approved storage facilities.
Not only do these places have the most advanced security system in place to protect your precious metal, but you have the peace of mind knowing that your investment is insured against any unforeseeable events.
Which Gold Coins Are IRA Approved?
Long ago, only the American Eagle gold coins were approved by the IRS to hold in an IRA.
After the Taxpayer Relief Act of 1997, the IRS expanded the approved list to allow one-ounce, 1/2-ounce, 1/4-ounce, and 1/10-ounce gold coins from the U.S. Treasury.
What Is a Gold IRA Rollover?
A gold IRA rollover is one of the easiest ways to transfer funds from a traditional IRA to your gold IRA. You can move your funds from a traditional or Roth IRA without incurring any tax penalties.
After you have chosen a gold IRA company, all you have to do is fill out an application and a transfer request form. The funds will be directly moved from your existing IRA to your gold IRA.
The funds never go into your hands. The transfer can take up to two weeks. After that, the gold IRA company representative will help you with your precious metal purchase.
If you have separated from your employer, you can roll over funds from your 401k, 403b, 457b, or the federal employees' Thrift Savings Plan. If you are still working and you meet minimum age requirements, you can do a partial rollover.
In a direct transfer, the current IRA custodian will issue a check to the gold IRA company which will help you with purchasing your precious metal.
In an indirect transfer, the check will be issued to you. You will deposit the funds from this check, then within the next 60 days, you send the funds to your gold IRA company.
If you fail to send the money to your gold IRA company within that time frame, and you are younger than 59.5 years old, you will incur an early withdrawal tax penalty of 10%.
Is Using a Gold Investment Company Necessary?
If you just want to own gold and not have it included in an IRA, you do not have to go through a gold investment company.
However, if you want to open a gold IRA and use your retirement funds to purchase precious metals, then you need a gold investment company. They provide many benefits.
These include customized services from their knowledgeable gold industry experts, educational materials, support in storing your gold assets, a buyback program, and much more.
If you choose not to use a gold investment company, you will have to navigate the above on your own. Investing in gold is not the same as investing in other assets.
Therefore, it is worthwhile to use the support and services that a gold investment company offers.
Conclusion
TD Ameritrade is a solid broker for novice and seasoned investors. They don't charge commission on stock and ETF trades. They guide you in building your investment portfolio.
They have a rich library of investing courses, research reports, trading tools, and a range of mutual funds that have no transaction fees.
TD Ameritrade is a solid company but we do not recommend them. They are not the best options for cash purchases of precious metals and certainly not the best option for investors that want to protect their wealth with a gold IRA.
There are much better options, like the ones we have written about on our list of the top gold IRA companies.
You can get a Free Gold Investors Guide from our top gold and precious metals company recommendation by clicking the link above or you can read our article of the top companies we reviewed this year:
>> CLICK HERE to read our list of the top Gold IRA companies. <<
Or, if you like what you have read about TD Ameritrade, you can go to there website below:
I started BMOGAM Viewpoints as a way to compile all my views on investing in one place. I own my home, have some real estate, and own a few stocks like most people, but what really drives my interest in investing is I have a strong love of precious metals, especially gold.
