My name is Terry White and I am CEO of Sunwest Trust.
Sunwest Trust is a self-directed IRA custodian. What that means is we will allow you to invest your IRA in any asset that is not specifically prohibited by the IRS. These videos are provided to you as educational only and they are not meant to take the place of your tax professional, so we strongly recommend that before you make any decisions or any investments with your individual retirement account that you seek advice from a tax professional or an attorney. Given that, in this video, we’re going to talk about investing your self-directed IRA in precious metals.
The Process Of Investing In Gold and Silver With Your IRA
The IRS allows that you can purchase gold and silver in your self-directed IRA. So, we’re going to talk about how you actually go through that process. So, we’re assuming that you’ve already got an account set up with a self-directed IRA custodian.
And so what you’re going to do is typically you would go out and find a broker that you want to work with. I would recommend that you talk to friends, family, maybe trusted advisors that have used specific brokers and they feel comfortable with them.
So, you find that broker you go to them and you say, “Hey, I want to buy some gold. One ounce, you know, American Eagle gold coins for my self-directed IRA.” You negotiate with them what you want to buy and the price that you’re going to pay for that.
And then, you contact your custodian – in this case, Sunwest Trust – and you send us a direction of investment form telling us to cut a check to XYZ brokerage, gold metal or precious metal broker to purchase five, one-ounce Merrick’s American Eagles, whatever you decide to buy from them.
We will then contact them and get the paperwork that’s required and send them a check, and then they will take those precious metals and ship them to Delaware depository, which is where we hold all of the precious metals that our client have in their IRAs. And then, the transaction will be complete. Your IRA that owns this precious metal, it’s held at Delaware Depository.
Steps to Selling Your Precious Metals From Your IRA
When the time comes, and you want to sell your gold coins, then you just do that same process in reverse.
You find the broker that wants to buy your coins.
You tell them I’m selling this precious metal out of my self-directed IRA with Sunwest Trust.
You send a direction of investment to Sunwest Trust instructing them to pull the gold coins from Delaware depository, send them to this brokerage company that you’ve dealt with, that you’re dealing with.
They will then send the money to Sunwest Trust and that cash will go back into your self-directed IRA account waiting for you to find another investment. That’s one way to do it and that’s buying the precious metal directly in your self-directed IRA.
One other method is by using a single-member LLC. And we have other videos that talk about how to set up the single-member LLC and how that works. But in that instance, you or whoever the manager of that LLC is would negotiate with the broker and would pay them directly for the precious metals and then you’ve got to store those precious metals somewhere.
So, you may have heard on the radio or seen people telling you that you can hold those, that your IRA can buy precious metals and hold them yourself, we do not agree with that. We think that is not a legitimate strategy. The precious metals, at least, need to be held in a safety deposit box at a bank and at best should be held at a depository like Delaware depository. But the purchase and sale of those precious metals are all done within the LLC structure. So, we may do another video later talking specifically about the whole LLC structure and how that can work with buying precious metals. But at this point, that’s just a basic overview.
Again, I want to encourage you. Never make an investment in your self-directed IRA account without seeking competent tax or legal advice. These videos are for educational purposes only. Just maybe to point you in the right direction to know what questions to ask and ask the right questions, but it should not and do not take the place of your competent tax or legal professional.
I appreciate you watching this video. I hope that it’s been some information that’s valuable to you. If you would like more detailed information about this, we have a podcast. You can find that on iTunes or wherever you find your podcasts. It’s called Sunwest IRA, the same as this YouTube channel. And you can go there and download and subscribe to that podcast and get a little more detailed information about the actual process that happens. We want to keep these videos short, so they do not take too much of your time, but that more detailed information is available there. I would also invite you to go to our website sunwesttrust.com. There, you can purchase, or you can you can request for free my book that gives you a total overall picture of a self-directed IRA and again, that helps you at least determine what questions you need to ask your tax professional before you actually make an investment.
Thank you for taking the time to watch this video. We put videos out every week and I hope that you come back next week and see what new information we have. Thank you.