Storage fees for my new Gold IRA - are these typical?

Joyce Cooper

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Storage fees for my new Gold IRA - are these typical?

joyce_cooper📊Growing (50-100k)

about 2 months ago

Key Takeaways

•Just rolled over a chunk of my old 403b into a Gold IRA recently and I'm staring at these storage fees.
•I opted for segregated storage, just felt more comfortable knowing my specific bars are accounted for, even if it costs a little more.
•My portfolio is sitting right around the $75k mark, predominantly in American Gold Eagles and some Canadian Maples.

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Just rolled over a chunk of my old 403b into a Gold IRA recently and I'm staring at these storage fees. I opted for segregated storage, just felt more comfortable knowing my specific bars are accounted for, even if it costs a little more. My portfolio is sitting right around the $75k mark, predominantly in American Gold Eagles and some Canadian Maples. The annual fee they quoted me for segregated storage is 0.75% of the total asset value. I'm in Little Rock, AR, and went with a company based out of Delaware for the custodian, with the actual vault in Salt Lake City.

Now, I'm a principal, and I teach financial literacy to my students, so I like to think I'm pretty good with numbers and spotting a bad deal. But this is my first rodeo with a Gold IRA. I'm questioning if this 0.75% is standard for segregated storage? It felt a little steep, honestly, especially when it's an ongoing cost. I know it's a small percentage, but over years, it adds up, right?

My main goal with this Gold IRA was long-term diversification and a hedge against inflation. My retirement is still a ways off, maybe 15 years, so I'm hoping to see some solid growth without excessive fees eating into it. I mean, for $75k, that's $562.50 a year just for storage. I can think of a lot of ways that money could be better spent, or even just stay invested!

Is anyone else paying similar rates for segregated storage on a portfolio of this size? Or did I potentially just sign up for something a bit on the high side? Any advice on negotiating these fees, or perhaps if there are better options out there that I should have explored? I'm open to critical feedback here, just want to make sure I'm making the smartest moves for my future.

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7 comments

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Best Answer▲ 13 upvotes

betty_king📊Growing (50-100k)

Just started my rollover process last month. The paperwork alone almost made me quit lol.

Comments (7)

ronald_morris👑Elite (1m-5m)Real Investor•about 2 months ago

Totally get where you're coming from on the storage fees. I did a similar rollover last year, also went with segregated storage for that exact peace of mind. My portfolio was a bit smaller at the time, maybe around $50k, and the fees felt a bit steep then too. They've definitely leveled out as my holdings have grown a bit, but that initial pinch is real. Sounds pretty typical for segregated, honestly.

joyce_cooper📊Growing (50-100k)✓ Verified•about 2 months ago

Hey, quick question on the segregated storage – when you say "specific bars are accounted for," does that mean they provide you with serial numbers or something similar, or is it more about the physical separation in the vault?

michael_anderson🏆Advanced (250-500k)Real Investor•about 2 months ago

Totally get wanting that peace of mind with segregated storage, especially with a 75k portfolio. However, I've seen a few folks on here debate if the extra cost for segregated is always worth it at that level. Many custodians offer commingled storage that's still fully insured and audited, and the price difference can be pretty significant. You're effectively paying extra for specific serial numbers on your bars versus an equivalent value in gold. Just something to consider if those fees start to feel a bit steep down the line!