Review of Fidelity’s Gold and Precious Metals IRA

Fidelity’s Gold and Precious Metals IRA Review

Lear Capital Review

Scott R. Hillford

Author & Founder Gold Is Money 2

Disclaimer: Some or all of the companies reported here may provide compensation to us, at no cost to our readers. This is how we keep our reporting free for readers. Compensation and detailed analysis are what determines how companies appear on this website.

Planning for retirement requires careful strategies and tactics for assessing opportunities and a keen eye for details.

Individuals looking for ways to save for retirement often choose traditional investment options such as employer-sponsored 401(k) plans, but are there accounts enough to sustain them in their golden years? Can they save enough money with these accounts to achieve the lifestyle of their dreams during retirement?

Many financial service providers offer beneficial services to start saving and building wealth. A promising opportunity for future retirees is to start a gold IRA. 

Prior reading further, it is important to acknowledge that investing your savings is a not easy. When it comes to incorporating precious metals into your investment portfolio, how can you tell which companies are reliable?

After devoting extensive time and effort, we have conducted thorough research within the precious metals industry and compiled a selection of the most trustworthy companies.


Take a moment to read our list and determine if Fidelity has what it takes to make the list this year!

This lets you to quickly compare the leading companies in this field and select the one that aligns with your specific requirements and investment objectives.

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However, to achieve this goal, the investor must find a company that helps them create their account and fund it with their preferred precious metals. Reviewing Fidelity helps determine if the company is the most suitable choice for investors wanting to build a retirement fund.

Who is Fidelity?

Fidelity opened its doors in 1946 in Boston, Massachusetts, and offers their clients a wealth of financial services.

The Better Business Bureau doesn't accredit the company but has an A+ and 1.15-star rating. They have had 966 customer complaints in the last three years, with 373 complaints in the previous twelve months.

Review of Fidelity’s Gold and Precious Metals IRA - Logo

The company provides asset management, tax-exempt investment opportunities, mutual funds, money market funds, and retirement plans such as gold IRAs. Investors can purchase precious metals for funding a gold IRA through Fidelity, but there are specific requirements they must meet when opening an account.

Review of Fidelity’s Gold and Precious Metals IRA - Website

Start An IRA With Fidelity

Fidelity offers a variety of financial accounts for saving for retirement and generating future wealth. They offer a gold IRA to diversify investment portfolios, but traders must fulfill the requirements for opening a new IRA through Fidelity.

The minimum investment for an IRA is $2,500, and the trader must choose whole ounces or a whole number of coins to fund their IRA. Fidelity requires investors to call them to set up an account between 8 am and 3 pm Eastern Standard Time.

When starting an IRA, the client must choose what precious metals they want to purchase for the account, how they'll fund it, and what account type they prefer. The following information can help them decide and avoid common mistakes when investing in their retirement fund.

What Precious Metals Do They Offer?

Fidelity has a variety of IRA-approved precious metals for funding a new account. Their gold products include Gold American Buffalo, Gold American Eagle, Gold Australian Kangaroo, Gold Canadian Maple Leaf, Gold Austrian Philharmonic, Gold South African Krugerrand, and gold bullion bars.

Review of Fidelity’s Gold and Precious Metals IRA - Products
Fidelity’s Gold and Precious Metals IRA - IRA Approved GOLD Coins

Their silver products include American Eagle, Silver Austrian Kookaburra, Canadian Maple Leaf, and silver bullion bars. Their platinum and palladium products include American Eagle, Canadian Maple Leaf, and platinum and palladium bullion bars.

A Roth IRA

Funding a Roth IRA requires the trader to use the capital they've already paid income taxes. If they have a Roth IRA through another company, Fidelity can still help them create a new Roth IRA with these funds.

They can initiate a rollover and send the money to a new account. Fidelity offers custodian services for IRAs, and the custodians can manage the requirements of a rollover based on IRS regulations.

What traders should remember about a Roth IRA is the benefits of these accounts. Since they've already paid income taxes for the fund, they won't include this income when filing taxes during retirement. So, if they could move to a higher tax bracket during retirement, income tax requirements won't become an issue or make life unaffordable.

Traditional IRA

A traditional IRA is the same as an employer-sponsored or matched 401(k) account, which workers set up through their employer. They deposit retirement money into the accounts before taxes apply to the income.

Fidelity offers traditional gold IRAs, and the owner can use their 401(k) to fund the new account by transferring the money into the account. Fidelity custodians can provide these services and transfer any portion of the account the owner wishes to use for their gold IRA.

What is important to remember about these accounts is that since the worker deposited tax-deferred money, they must pay taxes when they withdraw the money during retirement. If the contributions push them into a higher tax bracket, the owner must calculate ways to reduce their monthly payments to pay a lower amount in taxes each year.

Rollover IRA

A rollover IRA is an excellent opportunity for anyone leaving their current job and wanting to take their employer-matched 401(k) with them. Instead of losing money or failing to build up the account through the employer, they can roll the funds into a new IRA account through Fidelity.

The same rules and guidelines apply to this account based on its type, meaning they'd fund it with either tax-deferred funds for a traditional account or taxed income for a Roth IRA.

Roth IRAs for Kids

Fidelity offers IRAs for kids that parents can set up to secure their children's financial future. They offer Roth IRAs to give children a tax-free account later in life to fund anything. The account requires the new account holder to be under 18, and the funds must come from the minor's job.

For example, parents set up accounts for teens doing simple jobs like babysitting, lawn maintenance for the neighborhood, or a part-time job in retail.

The adult listed on the account controls it and decides when to add more funds to it and what stipulations apply. They can also transfer assets into the account for the minor to use once they become adults.

The IRS limits contributions and cannot exceed the child's annual income. The total contribution limit for these Roth IRAs is $6,500. There isn't a minimum investment requirement, and the adult can help the underage account holder make contributions according to how much the child earns each year.

Custodian and Depository Options

When using Fidelity as an IRA provider, clients cannot choose their custodians or depository for their precious metals. Since the IRS requires precious metals funding for an IRA to remain in a depository, the owner must set up depository services through Fidelity.

For many traders, the lack of control is undesirable, and they may choose a different provider to set up and manage their accounts.

Review of Fidelity’s Gold and Precious Metals IRA - Custodian

The Four Rules of Retirement Saving

According to Fidelity, the four rules of retirement savings involve four vital questions investors must answer when planning their retirement accounts and generating savings. First, they should determine if the savings they have now will cover all their expenses during retirement.

To make these calculations, Fidelity recommends that they plan to replace at least 45% of their annual income earned before retirement. Their next consideration is how much they should save overall for retirement. 

Fidelity's recommendations are based on the trader's age. For example, they should start with at least 1% of their income if they are in their thirties and gradually increase this percentage by three each decade of their life.

Their third consideration is how much to save each year. A general rule of thumb is to consider what lifestyle they want to achieve in retirement. If they live a life of luxury and want to remain comfortable in their golden years, Fidelity recommends saving at least 15% of their annual income for retirement.

The final rule is to create a plan to make their retirement savings last longer. According to Fidelity, the most appropriate withdrawal amount during retirement is around 4% of the total account balance.

Calculating How Much You Need for Retirement

Diversifying an investment portfolio is the best strategy to help traders calculate and manage the amount they can save for retirement. They should consider what they wish to accomplish during retirement and how they want to live.

For example, if they want to travel, they should calculate average rates for hotel fees, airline tickets, dining opportunities, and entertainment while in these areas.

By setting up more risk-free savings accounts, such as precious metals funds or IRAs, they can get more of a return and fund their golden years. Fidelity offers financial services to help anyone generate the right amount for retirement with fewer risks and more advantages.

Other Options for Investing in Precious Metals

Fidelity also offers mutual funds and exchange-traded funds or ETFs. These opportunities allow traders to invest in a company's securities according to their production of precious metals such as gold and silver.

Investors should remember that the metals market can become volatile, and sometimes mutual funds and ETFs might be better than investing directly in precious metals alone.

Any federal laws don't restrict these investment opportunities, and the trader can invest however much they want within a year without worrying about contribution limits.

The clients can also choose whatever metals they want, even if the IRS doesn't approve them for an IRA. Alternative investment choices can add diversity to an investment portfolio and give traders more options for building wealth and limiting their risks.

Newsletter

When visiting the Fidelity website, visitors see a pop-up offering weekly specials. By signing up for the company newsletter, customers get weekly information about the company, deals, and new opportunities for generating savings and starting new investments. They may find discounts on precious metals to help them get more and pay less for these purchases.

Financial Advice

The Fidelity website offers advice for tax-advantaged opportunities for IRAs and other accounts. They explain how to access money for memorable life events and emergencies when the account holder doesn't have enough cash to cover these unexpected expenses. The information also provides suggestions for flexibility when the trader sets up retired minimum distributions during retirement.

Learning Center

On the company's website is a section called the Fidelity Learning Center. Within this space, first-time investors educate themselves about different aspects of investing and learn how to avoid common mistakes. The information could help them choose the best investment opportunity based on their current and future needs.

Review of Fidelity’s Gold - Learning Center

There are new articles and posts on the website each day that could help anyone who doesn't know much about precious metals, mutual funds, or ETFs. After reading through the learning center, readers can stay informed about the latest training trends and the most profitable investment choices.

Using the Fidelity Virtual Assistant

On their website, Fidelity offers a virtual assistant feature. Through the tool, investors can get quick answers to their questions. The feature helps save time, and the visitor doesn't have to contact a financial advisor directly. They can access information about investing and costs related to Fidelity's services. Using the tool helps them decide when to become a Fidelity customer. 

What Factors Affect the Precious Metals Market?

Several factors affect the precious metals market, and these effects can impact how much the retiree receives annually and how well the money sustains their lifestyle. First, anticipated or actual inflation determines how much the US dollar is worth when the person starts using their retirement fund.

Next, jewelry production determines how much gold, silver, and platinum are available to investors, and higher production volumes can make precious metals scarce and more challenging for investors to purchase precious metals and build wealth.

Economic and geopolitical uncertainty affects the price of gold, silver, and platinum. These uncertainties can drive up the cost of precious metals and make it more difficult for traders to buy more. As a result, these factors could cause difficulties when investors want to sell their metals or liquidate their IRAs.

Industry titans use precious metals in industrial manufacturing and play a role in controlling the precious metals market. They can cause supplies to become low and drive up prices for everyone else.

Collectors can also affect the market since they purchase precious metals to increase their collections. When collecting gold or silver, these individuals are less likely to accumulate coins to sell later. As a result, they decrease the supply of coins and other products, taking them away from investors.

Verdict

Final Verdict

Fidelity is a financial services organization that helps investors create various accounts for generating future savings and wealth. They sell precious metals to traders who want to set up a Roth or traditional IRA, and the company provides custodians and depository services.

There are limits on how much control the investor has over their retirement fund since they cannot choose a custodian or depository for their metals.

However, Fidelity offers four different IRA types, including an account to help teens save for the future. While the company has been in business since the 1940s, a high volume of customer complaints may indicate severe shortcomings. Before investing, clients should thoroughly evaluate the company based on their personal investment requirements.

Let our expertise and analysis help you before you invest your savings by reading our list of the best companies!

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