Vantage IRA opened its doors in 2004. The company's founder entered the workforce in 1997 when he recognized a demand among self-directed IRA holders for easy access to alternative assets. Since then, Vantage IRA has been competing head-to-head with similar services across the United States.
Due to its tiny size, the firm has limited internet testimonials to show for its reputation. Nevertheless, generally speaking, Vantage IRA is a better-than-average IRA service.
The company's fees are split into three buckets: regular accounts, IRA accounts and precious metals accounts. Their highest charge for a precious metals account is $2,100, more than the industry average but on a level with other providers' per-asset fees.
There are several advantages to choosing Vantage IRA over other IRA providers; nevertheless, you should research and consider all your options before making a final decision. Let's examine Vantage IRA's services and its management team, investment opportunities, fees and more.
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Vantage Gold IRA Management Team
Regarding Vantage IRA, J.P. Dahdah is the man at the helm. Working with American Express was where he got his professional start back in 1997. He studied finance and marketing at the University of Arizona before launching his asset management firm in 1999.
Dahdah has been honored on several occasions for his leadership and entrepreneurial spirit. He received the Phoenix Business Journal's "25 Most Admired Leaders" award for 2019. Before that, the Arizona Hispanic Chamber of Commerce named him "Entrepreneur of the Year." And from the same school came the "40 Under 40" award, which recognized the most promising young leaders in the region.
Dahdah launched Vantage IRA in 2004 after realizing that self-directed IRAs might be used to hold alternative assets, a niche market he had long followed. More than a billion dollars are being handled by the firm presently.
The Wall Street Journal and other financial newspapers have profiled him. He has been widely recognized as one of Arizona's most influential business leaders thanks to his work with various non-profits that promote entrepreneurship and strengthen local business communities.
No additional members of the Vantage IRA team have bios posted on the site. Still, an awesome promotional video showcases many employees and provides a glimpse into the company's positive work environment.
While it's great that the video promotes business positivity and innovation, it needs to accurately portray the level of expertise the firm's leadership holds.
Let's have a peek at what Vantage IRA has to offer in terms of investment choices.
Vantage IRA Account Options
Vantage IRA's website might need clarification because of how the company's investment options are displayed. Neither the types of accounts available nor the investments each may hold are described anywhere on the site. A single "Forms" tab has all of the relevant information. It's sad; however, after some research, we could precisely describe the options offered through Vantage IRA. Here are the options:
Traditional and Roth Individual Retirement Accounts are well-known to the general public. People generally open one of these two IRAs to save for retirement.
You can defer paying taxes on your annual IRA contribution with a traditional IRA. While investors in a Roth IRA or a Roth gold IRA cannot postpone taxes until withdrawal, they do not have to pay taxes on the withdrawal amount once they reach retirement age.
Paying taxes on retirement income is preferable if you anticipate a large sum of money arriving once you stop working.
Both the Simplified Employee Pension (SEP) and the Savings Incentive Match Plan (SIMPLE) IRAs are set up for companies that want to help their workers save for retirement. The company, meanwhile, can take advantage of tax deductions.
The target audience for these is small businesses with less than 100 workers. The 401(k) plan is distinct from the SEP and SIMPLE IRA because it entails high administrative fees. This is why 401(k)s are best suited for large enterprises and other organizations with sufficient resources to fund the plan's administrative costs.
Defining Self-Directed IRA
A self-directed individual retirement account (SDIRA) offers the same tax benefits as a standard or Roth IRA but allows the account holder to direct the investments themselves.
The critical distinction is that with a Roth IRA, you are limited to traditional investments, but an SDIRA opens the door to many more exciting possibilities. These so-called "alternative" investments are prohibited in traditional IRA accounts.
How Does a Self-Directed IRA Work?
The rules for a traditional IRA and an SDIRA are quite similar. The yearly contribution ceiling is $7,500 for individuals aged 50 and above and $6,500 for those under 50.
Self-directed IRAs are available in both the traditional and Roth varieties. Both pre-tax and after-tax donations are treated similarly. The primary distinction is that with an SDIRA custodian, you can invest in non-conventional or alternative asset classes.
Financial institutions like banks and brokerages often act as custodians for traditional IRAs. Paper securities like stocks, bonds, mutual funds and exchange-traded funds are all you may invest in using them.
Cryptocurrencies like Bitcoin and precious metals like silver ingots and gold bars are acceptable investments for a self-directed IRA. Investors resort to tax-advantaged alternative investments as a means of retirement portfolio diversification or the pursuit of better prospective returns.
You should note that the custodian of an SDIRA often does not allow the purchase of alternative assets. It is imperative that you choose a different broker to purchase these alternative investments. Transferring assets to a custodian occurs after you are in possession of such assets. This adds some more complexity to setting up an SDIRA.
Self-Directed IRA Rules
Be sure you follow all IRS requirements if you decide to start a self-directed IRA. If you don't, you might lose your IRA's tax benefits. Due to its higher level of complexity, many people think twice before committing to it.
If you find the regulations around self-directed IRAs too complex, you may be better suited to opening a traditional IRA with a brokerage or bank. The brokerage will provide you with a tax statement once a year for traditional IRAs.
Self-directed IRAs require you to handle your tax filing. Thus, it is dubbed "self-directed" because of this feature. It's essential to maintain tabs on what can be put into an IRA and what can't. For instance, IRAs do not permit investments in collectibles and primary residences simultaneously serving as rental properties.
If you don't follow the regulations, the IRS may consider your whole SDIRA balance ordinary income. The rules for making early withdrawals from an SDIRA are the same as those for a standard IRA. The IRS levies early withdrawal penalties on both.
Because of the tax-deferred nature of an SDIRA, withdrawals must wait until the account holder reaches 59.5 years of age. There is a 10% penalty if you cash out your retirement account before you age 59 and a half. The takeaway is that you should only withdraw money from your retirement account if necessary.
Vantage Gold IRA Alternative Investments
Vantage's self-directed IRAs allow you to put your money into alternatives to the stock market. Consider these widely-accepted investment choices.
Private Entities Investing
Private companies are available for investment. In this context, "private" refers to businesses not traded on a major exchange. Included in this category are both established companies and new ventures. There are a variety of organizational forms for these, including limited partnerships, limited liability companies, private placements, private funds and private stocks.
Private businesses get their funding from individual investors. Retirement accounts are a useful source of financing for a developing company. The IRA owner benefits because any profits from these investments are exempt from taxation.
This is the most common investment option for SDIRA holders. Commercial, single-family, multifamily, vacant land, holiday rentals and fix-and-flip properties are all open to investment.
As with property purchased outside of an IRA, the IRA can be used to make real estate purchases. You can pay in cash, get a mortgage or use a company to complete a transaction. The path you take is entirely up to you.
Checkbook IRA LLC
LLCs or Limited Liability Corporations are special legal entities that can shield their members' wealth from legal action. In a Checkbook IRA LLC, the IRA serves as the sole proprietor of the business.
It has a plethora of advantages. Investors with SDIRAs who wish to diversify their holdings can seize opportunities as they occur, thanks to the account type's adaptability.
Anybody with a self-directed IRA and interest in lending money on their conditions can invest. Any sort of promissory note is acceptable for IRA investment. Examples include private credit funds, trust deeds, private credit notes and convertible and unsecured notes.
A self-directed IRA puts decision-making power in your hands. If you choose to use the funds from your SDIRA, you get to be the lender. A self-directed IRA can be used for private loans.
Vantage Gold IRA Fees
The fees charged by Vantage IRA fall into one of three categories: IRA accounts, precious metals and health savings accounts. We will focus on the first two, as the typical self-directed IRA investor will likely establish something other than an HSA.
IRA Account Fees
Vantage IRA charges a minimum of $50 to open an IRA. Not all IRA providers will charge you to open an account, but the ones that do will often do so for $50 or less. You should expect to pay a charge similar to this for similar services.
In addition, Vantage IRA costs $350 per asset annually, up to a maximum of $2,100, for record-keeping. Once again, that's competitive with the market overall. We found that several of the IRA providers we researched charge a limit of between $1,850 and $2,000. There is considerable variation in how each one arrives at such figures.
Depending on the firm, fees may be calculated as a percentage of the account's total value, a flat rate per asset or any mix of the two. Nonetheless, the typical IRA account holder with a $2,000 yearly charge has a balance of $750,000 or more in their retirement savings.
Precious Metals Fees
The initial charge for a precious metals IRA account is $50, the same as for a standard IRA. A precious metals IRA has a reduced yearly record-keeping expense compared to a traditional IRA. A Vantage IRA costs $195 per year for this service.
The storage and shipping costs are where Vantage IRA gets its money. The cost of shipping is relatively standard. To do so at Vantage IRA will cost you a minimum of $50. But storage costs are calculated depending on the total value of your account. If your IRA depository's renewal date is within 60 days of today, Vantage IRA will charge you ten basis points. The bare minimum you'll pay is $125.
Please note that there is a $100 termination fee for precious metals accounts and a $150 termination cost for standard IRA accounts. You'll find its charges reasonable if you compare Vantage IRA with its competitors. Given the competition, we would place the firm in the center.
Vantage Gold IRA Customer Support
Vantage IRA takes an innovative approach to serve its customers. Vantage IRA prioritizes education via its online knowledge base and provides customers with a phone number and email address to contact the firm directly.
In addition to detailed explanations of commonly-asked questions, this database also features a comprehensive calendar of upcoming seminars where investors can get insight into their IRA choices and the market landscape.
Yet, they also provide a toll-free number and a web form for emailing the business. Unfortunately, a live chat with a support representative is not an option.
Vantage Gold IRA Customer Reviews
Customers of Vantage IRA have given it primarily positive reviews and ratings. Many customers have reported that the Vantage IRA team is knowledgeable and professional, providing helpful advice and guidance. Vantage IRA customers have also found the customer service friendly and responsive, making them feel their needs and questions are taken seriously.
Many customers also appreciate the transparency of Vantage IRA. The company provides customers clear, easy-to-understand information about their investments and portfolios. They also provide helpful information about tax laws and other retirement-related topics. This makes it easier for customers to make informed decisions and they often feel confident in their choices.
Other customers have commented on Vantage IRA's low fees and commissions. They appreciate that Vantage IRA is upfront about their fees and commissions and that their fees are relatively high. Most customers have found that the fees are well worth the benefit of working with a knowledgeable and experienced retirement strategy consultant.
Advantages of Adding Gold and Silver to an IRA
The sheer fact that you are in self-directed mode makes the contribution process easy. But, once you have learned your situation, it's easy to understand how making the investment decision as a non-taxed person is much more beneficial.
Protection Against Market Uncertainties
Gold and silver are physical assets with tangible value and are less vulnerable to market forces than traditional investments. Gold and silver's value is relatively stable over long periods, meaning that investors' portfolios are less likely to be affected by market changes.
Gold and silver are "haven" investments, meaning they do well when other investments perform poorly. During economic instability or market downturns, gold and silver can act as a hedge against losses in other investments.
Gold and silver also tend to increase in value when other investments decrease. Investors can use gold and silver to protect their portfolios from losses and increase their overall return.
The combination of gold and silver can help investors to keep the risk of their investment portfolio in line with the overall market. When looking for investments, it is essential to consider each investment's risk and potential return.
Gold and silver differ from many other investments because they are each unique. Gold is a monatomic element used as a commodity for thousands of years, while silver has been used as money for hundreds of years. As such, gold and silver have different properties than most investments do.
This means that gold and silver are often not affected by many of the same economic factors, even though they may be affected by similar factors. For example, gold and silver prices tend to rise when the economy is doing well but are immune from inflation. As such, these two precious metals can help investors to hedge their portfolios against risk.
Tax Deferred Asset Growth
Gold and silver are unique assets that are treated differently from other investments. The investor must pay taxes on the capital gains when an investment is sold at a profit. However, gold and silver in an IRA have special rules that allow investors to defer paying taxes until they sell their holdings. This means that investors can defer paying taxes until they choose to sell their gold or silver investments.
Regarding SDIRAs in the southwestern United States, Vantage IRA is a top choice. They serve more than 7,000 customers. They act as a neutral third-party administrator for a select group of trust firms.
Vantage provides investors access to alternative asset classes, including real estate IRAs, private financing, private corporations, precious metals IRAs and many more. Costs associated with precious metals storage and management are separate from their affordable yearly charge.
Although Vantage IRA is a respectable firm, we do not endorse them because we believe there are superior options for clients who want to hedge their retirement portfolios with precious metals stored in a tax-deferred IRA.
We can suggest far better options. Our top-rated gold IRA companies offer better services and lower premiums, which is why we recommend them instead. The Better Business Bureau accredits them; their agents have been in the business for years.
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To make the best retirement investment choices possible, turn to one of our top-rated gold IRA companies. They will help you build a diversified portfolio that gets you the most bang for your buck. We'll recommend companies with a proven track record of success.
Finally, they offer advice about all aspects of owning IRA investments published on their websites as part of their advisory services.
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