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.
Military service members, their spouses, and children will require opportunities for investing in retirement funds. As USAA account holders, they have access to many opportunities to create IRAs and set up investments. S
ince USAA is exclusive to military families, outside investors cannot even set up a bank account and cannot take advantage of these investment ventures.
When the time is right, military service members or their families can review several options for creating a gold IRA and get the full benefits of these accounts. But before they start, they need to check these opportunities to avoid financial mistakes and get the most out of these investments.
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The military-exclusive bank, USAA, opened in San Antonio, Texas, in 1922, providing financial services for service members and their families.
Service members can set up bank and savings accounts and start an IRA to create funding for their golden years.
However, the financial institution doesn't provide home storage self-directed retirement accounts for anyone. Customers who meet the guidelines for becoming a USAA member can access investment opportunities via Schwab. They can also review and track their accounts to gauge their performance.
Transferring Investment Businesses to Schwab
In 2019, USAA's investment businesses were purchased by Schwab and Victory Capital, and since 2019, these investment businesses have become a franchise of Victory Capital Investment. As a result, USAA account holders who want to invest in financial accounts such as an IRA must sign up through Schwab after signing into their USAA accounts.
How to Open an IRA
Although IRAs aren't created through USAA directly, USAA members can access Schwab by signing into their USAA account, clicking on the "Investing" tab, and then clicking "Investments."
A page will load that offers a button labeled, "Open an IRA at Schwab," where USAA members can get started. They'll answer questions according to the prompts on the webpage. They can contact a Schwab custodian who creates the account and walks them through the account creation process.
Clients must explain their aspirations for the IRA, such as if they want to create a standard IRA or a gold IRA. While the account creation is similar, the gold IRA will require the customer to choose precious metals such as bullion, bars, or coins to fund the account. However, if they decide to fund, it also could present a few extra steps, including transferring or rolling over funds from a different IRA.
Traditional IRA from Schwab
Tax-deferred funds are used for traditional retirement accounts, and service members can transfer funds to the account before their wages are taxed.
However, when they retire and start receiving monthly payments, they accumulate income tax for the money since they didn't pay state or federal taxes on the money when transferring it to their retirement account.
When examining their options, it is wise to consider these income tax requirements, especially if they reach a new tax bracket after they retire because of the retirement funds.
Comparing these shortcomings to the benefits of a Roth account could provide further insight into which account type meets the military service member's retirement needs better. They can also determine if they will have enough retirement money after they settle their tax requirements.
Roth IRA from Schwab
Roth accounts aren't tax-deferred; military service members must pay income taxes for any money they add to these individual retirement accounts. For example, since their USAA and Schwab investment accounts are connected, they can transfer the funds to the Schwab account from their checking or savings account.
If they want to add the money to their gold IRA, they contact their Schwab custodian and use the funds to buy precious metals after the funds are deposited into the account. Schwab IRA specialists can discuss contributions with the service member and calculate annual limits based on funds deposited into other retirement accounts or funds.
When the service members retire, they don't face income tax requirements with a Roth IRA. Since they paid taxes before using the money, the IRS cannot tax them twice, and they don't have to worry about arriving at a new tax bracket after retiring or higher tax implications.
They can secure their future with the accounts and generate considerable wealth without dealing with the IRS in their golden years.
Can You Set Up Home Storage Gold IRAs?
No, USAA doesn't provide home storage self-directed gold IRAs. All precious metals used to fund a retirement account must be deposited into a depository and remain there until the owner retires.
Since USAA members must hire Schwab IRA specialists to create their IRA, they may face restrictions for custodians and where they store their metals. It is wise to consult an IRA specialist to determine what restrictions apply to these accounts.
Connecting Schwab and USAA Accounts
USAA members can track their checking and savings accounts through an online user account with USAA. After they open the IRA, the account appears within their USAA user account, and they can review details about these accounts anytime. Immediate access to account information is helpful for military investors who need to track the progression of their IRA or plan for future contributions.
Transparency for Fees and Charges
As of 2023, USAA and Schwab do not disclose all fees and costs for their gold individual retirement accounts on their website. Military service members who want to start the accounts must contact an IRA specialist for a complete estimate for these services.
In most cases, there are documentation fees, management fees, maintenance fees, and charges for depository services. If the service member transfers funds from another account, there could be charges for this transfer or rollover into the newly formed IRA.
Top 3 Companies Choosing Over USAA and Schwab
Military service members and their families aren't limited to setting up a gold individual retirement account through USAA or Schwab. They have many gold companies to choose from to start and manage an IRA. By reviewing these top three companies, they can determine if they present a better alternative to these financial services providers.
Goldco, a gold company headquartered in Los Angeles, California, opened in 2011.
Military service members who want to start a gold IRA set up the accounts via phone, in-person at the Los Angeles location, or through the company's website.
The gold dealer provides all IRA types to allow the military account holders and others to start a gold IRA, purchase precious metals, or sell the precious metals back to the company through a buyback opportunity.
Goldco offers more control over the IRA by allowing the customers to choose a depository or custodian based on their preferences instead of facing unwanted restrictions. They do not have a minimum investment amount that clients must meet, and customers can make this decision themselves.
The company's history and track record show that it has a high five-star rating on the Better Business Bureau with accreditation. It has an affiliation with Numismatic Guaranty Company and Consumer Affairs, which adds to its credibility, and the business has celebrity endorsements from Chuck Norris and Sean Hannity.
The business also has many opportunities for purchasing gold or silver without starting an IRA. Investors who want to accumulate wealth outside of an IRA can buy these products from Goldco based on supply and demand and their current investment budget.
2. Augusta Precious Metals
Augusta Precious Metals is another gold company that offers investment opportunities to everyone and isn't restricted to military personnel only. The gold dealer is located in California and started in 2013.
Military service members and their families can find gold IRAs through the business.
The company offers many IRA-approved products for funding individual retirement accounts and generating wealth outside of these accounts.
Reviewing its history shows that the business has many previous clients that back them and share positive experiences on Google and the Better Business Bureau. The organization doesn't require commissions or management fees; these advantages help military service members save more on their retirement accounts.
Military clients can get a seven-day price lock for their metals purchases and avoid increased prices while they decide if they are ready to invest. Protection programs are also available to these customers to ensure they get the best rate when trading or opening retirement accounts.
Augusta Precious Metals offers a lifetime account management opportunity for all clients to secure their information and keep their accounts active and accessible.
Since Augusta Precious Metals has a buyback program, military service members don't have to look around to find somewhere to sell their metals when they retire. Their IRA specialist can set up the buyback through Augusta Precious Metals and help them liquidate some or all their IRA to get distributions.
The company's website has features that show these clients the current market prices for all products, and they can review these prices before they sell any assets to Augusta Precious Metals.
3. American Hartford Gold
When choosing a company to buy precious metals from or fund a gold IRA, military members could select Hartford American Gold.
The company has a long history of precious metals sales, purchases, and investment opportunities.
The business started in 2015, and they have a physical location in Los Angeles, California, and other regions of the state.
A review of its credentials shows that the organization has Better Business Bureau accreditation and celebrity endorsements from former New York mayor Rudy Giuliani and Bill O'Reilly. Customer reviews are critical to prospective investors, especially military members, and there are many positive customer reviews on Trustpilot and Google.
Military service members can get many special offers from American Hartford Gold when setting up their individual retirement accounts. For example, the company offers $10,000 of free silver products if the client makes an eligible purchase. The clients get their IRA fees waived based on the amount of their initial investment.
For instance, if they invest $100,000, American Hartford Gold waives IRA fees for three years, and if they invest at least $50,000, they don't pay IRA fees for the entire first year.
American Hartford Gold provides a gold IRA kit with helpful information about investing in these individual retirement accounts like the other two companies. In the kits, they find detailed information to help them make a well-informed decision on when and how to start a gold IRA.
When comparing American Hartford Gold to Augusta Precious Metals and Goldco, military members learn that there is a minimum investment amount of $10,000. If they want to buy precious metals outright with cash or another payment method, the client must purchase at least $5,000 worth of metals.
For investors with considerable capital, these requirements don't affect them, but individuals with more modest budgets may not have the opportunity to fulfill these minimum requirements.
Military families who want to invest in a gold IRA can set up an account through USAA and connect to Schwab to start their IRA. Through these companies, they can access IRA specialists who understand all the requirements for setting up the accounts, managing them, and increasing their value based on new opportunities and IRS regulations.
USAA has a long history of providing financial services for military members and their families. While the financial institution and its investment services are helpful, several restrictions aren't appealing to everyone.
Before military families set up an IRA, they should weigh their options and compare alternative opportunities to what USAA and Schwab have to offer them.
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