By Tim Schmidt
I've been investing in precious metals since 2021 and have actively managed my portfolio for three decades. As someone who has interviewed and investigated many firms out there, I'm always looking for companies that are trustworthy and have a solid reputation.
The title of this website may be Gold IRA Custodians, but before you can choose a custodian you need a supplier. It's not the easiest of financial decisions to make in life, as there are countless options you'll most certainly come across. With my thousands of hours of research covering this industry both on this website and for many other financial publications, I do my best to help you simplify your search for a gold investment provider.
Always aiming to be informative and non-persuasive, today's article delves into Fidelity Investments and more so, the Fidelity gold IRA. I'll share with you all the intel I've acquired while seeing if this was the gold IRA account was one I felt was worth it.
Fidelity: A Company With a Long History in Finance
Fidelity was founded way back in 1946 and they are one of the largest names in the investing industry. Their latest annual report stated they have over $12.6 trillion in assets under administration. They are different from other providers I cover on this page because precious metals and retirement savings are a smaller part of their incredibly diverse set of investments they offer.
Offering financial planning and education, Fidelity is in a league of it's own and again in terms of offering guidance and educational resources to help investors.
Perhaps the most noteworthy item about Fidelity I can report in this review is that they have 215 investment offices in the United States and have 13 more regional-facing offices in the US, Ireland, and India. With over 74,000 associates, you can see how they amassed so many assets under administration and became a global player in finance.
Fidelity Company Statistics:
- 49.7 million individual investors
- 24,000 employers
- 16,000 wealth management firms and institutions
Precious Metals Investing With Fidelity
There are many options when it comes to gold IRA investing. When you boil it down to which firm you'll work with, to which coins or bullion you'll add to your portfolio, there are a lot of complex decisions you'll have to make as you go through this process.
I found Fidelity to be very resourceful when it comes to offering guidance in opening a gold IRA account and discussing the pro's and con's of this financial transaction.
Like other companies in this space, they offer these ways to invest:
- Traditional IRA Account: a classic tax-deferred account where you'll pay taxes on distributions when you reach retirement age. You won't pay any taxes along the way, unless you have to make an early withdrawal which is subject to an IRS penalty.
- Roth IRA: funded with after-tax dollars, the Roth gold IRA account is a great way to accrue tax-free growth and even withdrawals once you reach retirement age.
For transparency, my gold IRA is in a traditional IRA account, but when the time comes I may do a rollover and convert it to my Roth IRA, which is a process I'll cover in the future.
Fidelity offers an IRA contribution calculator that can help dumb down the investment decisions and assist in determining the amount of funds you can invest into the IRA account each year.
Precious Metals Investment Minimums & Options
Fidelity's minimum investment for precious metals is $2,500. There are many gold investment companies with much higher minimums. I've seen as high as a $50,000 account minimum with Augusta Precious Metals.
While it's great to have a low investment minimum, where Fidelity turned me off was their limited offerings in IRA approved precious metals.
The below list shows all the options for investment into a precious metals IRA.
- Gold American Eagle
- Gold American Buffalo
- Silver American Eagle
- Platinum American Eagle
- Bullion bars
I do like that they feature the option to invest in platinum as a pro of investing with Fidelity. Many firms don't allow that option.
Should you choose to invest with Fidelity, you'll also have the luxury of having access to their other core services, including an investment and brokerage account, savings account, managed accounts, health savings (HSA) account, annuities, cryptocurrency trading and investing, life insurance, and a 529 college savings plan. That's in addition to the traditional offers like CD's, bonds, and ETF's.
Managed Accounts
I haven't worked with a Fidelity financial planner, (I only investigated the Fidelity gold IRA option for research purposes before opting to invest with this company), but they do offer financial planning.
Market Information and Resources
There aren't many investment firms that publish tools and research to help any investor who visits their website like Fidelity does. If you toggle through the drop down menu on their website you'll encounter links to resources, educational articles, and calculators that can help you make sound financial decisions.
How to Invest With Fidelity
Step 1: Open Your IRA Account
Step 2: Fund the Account
Step 3: Invest
Step 4: Secure Storage
One drawback with the Fidelity gold IRA is that they don't provide any storage options outside of their own. They use FideliTrade, Inc., which is an insured depository. Other gold IRA providers offer options such as the Delaware Depository and the Texas Depository.
Fidelity Fee Structure
The number one question many people have on their minds when investing in precious metals is "what are the fees's?" This wasn't published online but I did some digging and found the folowing:
- There is no fee to open an account
- There is a precious metals transaction fee of $44
- Storage fee (quarterly) is 0.125% of the total value or $3.75, whichever value is higher
Like another other brokerage, there is also a trading fee when you buy your precious metals. This fee ranges from .99% and 2.99% based on how much you invest. This is in line wither other institutions and I find it to be a reasonable fee.
Final Review Notes
I find nothing wrong with using Fidelity for a gold IRA. You can't get much more reputable than this company. One look at the robust services they offer should tell you all you need to know. While I didn't select them to be my gold IRA provider, I believe I would have considered them if I was a customer of theirs for any other wealth management purpose just to keep things all in one place.
About Tim Schmidt
Tim Schmidt is an Entrepreneur and Serial Investor. Since 2012 he's been an advocate of alternative investments using a Self Directed IRA. His work has been featured in Yahoo! Finance, USA Today, Business Insider, and Tech Times, among others.
