What is a Self–Directed IRA?
A Self–Directed IRA (SD IRA) allows customers to invest in a wide range of allowable assets that carry the
same tax advantages as non-self-directed IRAs. SD-IRA’s have been around since the creation of traditional IRAs in the 1970’s.
This option gives the investor control and diversification of retirement funds, while providing the ability to adapt to market/economic situations.
Buying gold and silver through an IRA…?! I know, it sounds overwhelming, or even a little intense, right?! I can assure you that once you
have made the decision to diversify your portfolio using precious metals, the rest of the decisions along the way are going to be easy,
if not even a little fun! Think of it like buying a car. Once you decided to buy a Honda or a Ford, the year, make model, color,
size, extras, etc….are all based on your preference and what works best for your family. Selecting the precious metals that will make
up your SD-IRA account is just like that car buying process. There are so many combinations, it allows everyone to
make their purchase, truly their own.
Once you have made the decision to diversify your financial portfolio by using your IRA funds to purchase precious metals, there are only two simple steps needed to accomplish this goal…
Set up and fund a Self-Directed IRA: This process is much easier than it sounds. Most of the time it is completed via email,
or fax, between you and your financial institution (generally the same one that already has responsibility for your traditional IRA business).
Each financial institution is different, however in most cases this process takes a day or two max.
If your current IRA(s) are with a company that doesn’t offer SD- IRA services, Scotsman can get you in direct contact
with a Certified IRA Services Professional (CISP) we work with closely year ‘round. These personal/direct contacts can discuss
with you your options, the set up process and answer any questions you may have about self-directed IRA’s. The two institutions we
work with the most are New Direction IRA, Inc and The Entrust Group.
Included in the process of setting up your Self-Directed IRA, you will have a variety of choices to make based on your needs/wants
for your precious metals. For example: You will choose which depository you want to have your metals stored. In addition you will have
the opportunity to select the type of bullion, the number of ounces and the amount you wish to invest.
It truly is an “a-la carte” investment decision.
Select the type of bullion, quantity and total amount that you will purchase: Do you want to buy gold? Silver? Platinum?
Do you like 1oz bars because they fit really well in your safe? Do you want to buy all gold products? All silver products?
How about a little of each?! This is where Scotsman can make your investing process easier and much more efficient.
We can answer all your questions in person at the shop and show you live
examples of the precious metal products you will be purchasing.
Most importantly, Scotsman provides you with a personal and direct line of communication and client support for every step along the way.
You will have one person of contact that understands your wants and will work with you in person. No call centers. No numeric prompts.
No “faceless” bullion transactions. No frustration because you can’t get a question answered, or a concern addressed.
At Scotsman, you will have untethered access to one-on-one customer service and communication.
Commonly Asked Questions
What are Scotsman’s fees for facilitating a SD-IRA purchase?
There are only two fees that Scotsman applies when working with SD-IRA customers:
- Bank wire fee – $15 for the SD-IRA company’s transfer of your funding to us once you have selected the metals you want to purchase
- Shipping and Insurance – First time SD-IRA customers have a $15 fee for Scotsman shipping the contents of their invoice to the depository of their choice. After that, Scotsman established SD-IRA customers receive free shipping and insurance for all orders over $5,000.
Does Scotsman store my precious metals for me?
No, only approved IRA storage facilities are able to store your bullion/precious metals bought through a SD-IRA.
What types of metals are allowed in an SD-IRA account?
Scotsman can provide you with a detailed list of the metals that are permitted in IRA accounts, but a good rule of thumb for all SD-IRA precious metal accounts is:
- Bars and rounds produced by a refiner/assayer/manufacturer accredited by NYMEX/COMEX, NYSE/Liffe, LME, LBMA, ISO 9000, or national government mint and meeting minimum fineness requirements….
- Scotsman only deals in these metals and can offers all of our customers live examples of each metal, in each form, when you visit the store to ensure you are confident in what you are buying.
What is the difference between segregated and allocated storage at a depository?
Allocated storage combines all the metals into the metal count at the depository. The metals are separated by type of metal, refinery and size/weight. As metals are distributed over time, customers receive the same type of metal, from the same refinery, and in the same weight/size that they deposited. However, there is no guarantee that you will receive the same product that you purchased.
Segregated storage separates each customers products, from each purchase, so that when you sell your metals, you receive the exact same items that you purchased and that Scotsman sent to the depository on your behalf.
What does purchasing precious metals in a SD-IRA account provide the investor?
- Control – as the account holder you decide what metals you are investing in and how many ounces you want to purchase.
- Value Recognition - Everyone, in almost every corner of the World, understands and/or knows the value of the precious metals, like gold and silver.
- Diversification – balances personal financial portfolios that can be heavy in stocks, mutual funds and other stock market based investments.
- Wealth preservation – With inflation, comes a decrease in the buying power of your cash. When you are ready to retire, the ease of liquidating, transporting and store precious metals will make that transition that much easier for you and your family.
Scotsman offers 5 Easy steps to diversify your financial future:
- Open a Self-Directed IRA account.
- Fund the account.
- Visit Scotsman to ask questions, look at examples of all the metals, learn more about the process and meet your SD-IRA contact in person.
- Select what metal(s) you want to purchase, how many ounces you want to purchase and when you want to make you investment.
- Sit back, relax and enjoy the confidence that is a product of trusting and working with Scotsman to grow your family’s nest egg!