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McAlvany ICA is one of the most respected names in the precious metals industry in the world.
They are one of the oldest gold and silver dealers in the U.S., with over five decades of proven experience in the business.
Here's a comprehensive guide to what they are, the services they offer, the pros and cons of working with them, and more.
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About McAlvany ICA
McAlvany ICA is a company in Durango, Colorado, that buys and sells precious metals approved by the IRS. It was founded in 1972 by Don McAlvany and is now run by his son David McAlvany.
The company is committed to keeping its clients educated and informed about all facets of growing and safeguarding wealth. They believe that a person's worldview is the guiding force in setting goals and determining the strategy for achieving them.
In fact, they provide weekly economic and geopolitical analyses to help clients understand the global environment and make informed decisions. They also offer free investment guides and newsletters.
Founders and Management
After graduating from the University of Texas, Don McAlvany went to Wall Street to work for a New York Stock Exchange Firm. He quickly realized that given the market conditions at the time as a result of Johnson-era fiscal and monetary policies, traditional investment strategies were inadequate for protecting wealth.
And so, in 1972, Don and his wife, Molly McAlvany, began selling two-ounce gold religious medallions to people, helping them fight off the coming inflation and devaluation of the dollar.
Later that same year, they created International Collectors Associates (ICA) - the original name of McAlvany Precious Metals. This gave them the advantage of being the first wholesale provider of bullion products to Wall Street companies.
In 1973, Don McAlvany became the sales manager for International Investors Incorporated, which at that time was the largest gold share mutual fund in the world.
Molly, on the other hand, focused on building America's first bullion business. As the years went by, their company grew, and almost a decade later, they also started offering retail client services to Wall Street clients.
By the late '90s, their son, David, graduated from Biola University. He went further to study philosophy and political theory at Oxford University and later volunteered as an analyst in Chile with The Institute for Liberty and Development, an organization that provides free market solutions in Latin America and other third-world countries. Additionally, he achieved honors as a top salesman with Southwestern Company.
With his extensive personal experience and his father's guidance, in 2006, David became the CEO of McAlvany Precious Metals (ICA). Within a year, he created McAlvany Weekly Commentary, followed by the McAlvany Wealth Management service registered by the SEC. And in 2017, he created a mobile app that allows people to purchase and sell gold online at affordable prices.
Don and David McAlvany carefully select and train the staff at McAlvany ICA. All employees are knowledgeable and experienced in their respective fields. For example, Drew Crowell, the company's coin specialist, is one of America's foremost numismatics who has been with McAlvany ICA since 1982.
The same level of depth and breadth of knowledge applies to every other member, from market analysts to customer service representatives. Each is a well-rounded professional who can offer sound advice and help investors reach their goals no matter the situation or type of account.
McAlvany ICA offers various products, including gold, silver, platinum, and palladium. Investors can also buy collectible coins and numismatic items through the company.
The coins are graded and certified by the Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC). They also have their in-house numismatist that personally inspects and selects the coins for sale.
McAlvany ICA also offers a wealth management service that helps clients build their portfolios using precious metals as an asset class. This includes a full-service account that allows clients to make real-time trades, as well as self-directed IRA accounts.
Clients are also able to receive free market analysis from their team of financial advisors, in addition to the weekly economic and geopolitical reports they provide.
How to Get Started With McAlvany ICA
Interested clients can get access to the company's product catalog by visiting its website (https://mcalvany.com/metals/) and adding the products that they want to a request list. For this list to reach one of the company representatives, they have to fill out a form with their personal information and contact details.
An interested client can also click on the "Talk To An Advisor Button" on the top right corner of the company's website to get their phone number, fax number, or mail address. A representative will reach out to them within 24 hours of receiving a contact request.
Alternatively, they can take a quiz test to match with an advisor. This quiz test also helps the company to give them customized recommendations and a portfolio tailored to their specific goals.
Precious Metal Storage
McAlvany ICA provides its clientele with several tips on how to store precious metals. They suggest home safes, which give people more control over their metals while eliminating storage fees. The problem with this, however, is the risk of theft and fire.
They also recommend bank deposit boxes and vaults. This method is convenient, affordable, and more secure than home safes. The problem with deposit boxes and vaults is that clients can only access their gold and silver products when the banks are operational. And, if the said institution were to be nationalized or fail, they may have to wait for weeks or months to withdraw their products.
For clients who want to store their precious metals in an institutional setting with superior safety protocols, McAlvany ICA has partnered with both domestic and international storage facilities. These facilities are insured, heavily guarded, and offer their clients detailed inventory reports and delivery services. This method is ideal for investors interested in creating Gold IRA accounts or buying in bulk.
Investing in Gold IRA With McAlvany ICA
Their no better way to take advantage of precious metals than to use them as a backup for a retirement account. From their history, gold, and silver have proven to remain stable regardless of economic conditions. Even better, their prices tend to keep soaring as time goes by.
McAlvany ICA offers self-directed IRA accounts that are specially designed for gold, silver, platinum, and palladium products. With this type of account, clients can purchase coins, bars, and rounds to store in their retirement portfolio while still taking advantage of tax benefits from traditional IRAs.
Available Gold IRA Accounts
There are essentially four types of precious metals IRA accounts that an investor can create. They include Traditional Gold IRA, Roth Gold IRA, SEP Gold IRA, and SIMPLE Gold IRA. Traditional Gold IRA is the most common one as it allows people to contribute with pre-tax dollars. As a result, those contributions can be tax-deferred or tax-deductible. However, when it reaches the time to withdraw from the account, the IRA will tax the money at its full rate.
Roth Gold IRA, on the other hand, allows people to contribute post-tax income in exchange for tax-free withdrawals after retirement. This type of account is suitable for those who want their wealth to grow tax-free or those that believe that the government may implement higher taxes in the future.
Additionally, unlike Traditional Gold IRAs, Roth Gold IRA has no lifetime required minimum distributions (RMDs). This means that after the account holder reaches the age of 59 1/2, they can enjoy penalty-free withdrawals of any amount at any time.
SEP Gold IRA is similar to Roth Gold IRA in that post-tax income can be used to contribute to the account. The main difference between these two types of accounts is that SEP Gold IRAs are suitable for those who are self-employed or own a business.
SIMPLE Gold IRA requires employers and employees to make pre-tax contributions to a retirement fund. This type of IRA is ideal for those who are looking to save more than the maximum limits set by Roth or SEP Gold IRAs.
Gold IRA Rules and Regulations
The first and most important rule of investing in a gold IRA is that the dealer must be IRS-approved and provide pure metals to their clients. McAlvany ICA works with gold, silver, platinum, and palladium products that meet the required standards. For example, their silver is 99.99% pure, while their gold is 24k.
Additionally, clients must store their precious metals in an IRS-sanctioned depository. Clients cannot keep or possess the precious metals that back up their gold IRA accounts even for a single day. If that were to happen, the IRS would treat their metals as distributed and start assessing the appropriate taxes and penalties on them.
Clients can either choose their own depository or agree to use the depository that their account manager already has a relationship with. In this case, McAlvany ICA partners will safeguard their treasure hoard until they reach the age to sell or have it distributed to them.
There are also contribution limits to keep in mind. For traditional and Roth gold IRA accounts, the current contribution limit is $6,500 per annum for investors under 50 years and $7,500 for those over 50. SEP gold IRA account allows investors to contribute $66,000 per year or 25% of their total annual income (whichever is lesser). SIMPLE gold IRA limit is currently at $15,500.
Lastly, the IRS requires investors to reach the age of 59 1/2 to touch their funds without incurring penalties. And if they wait until they are 70, they must begin to receive distributions or withdrawals.
Fees and Costs of a McAlvany ICA Gold IRA Account
Gold IRAs come with extra costs that an investor may not experience with other regular retirement accounts. An account manager will need to set up fees to cover paperwork and any other administrative work associated with the account.
Then there are annual fees for storage and insurance costs. Additionally, some dealers will charge additional commissions on any gold purchases made by their clients.
McAlvany ICA doesn't unveil how much their costs or fees are. They encourage their investors to call them to figure out the exact price they need to pay, depending on the type of gold IRA account they open. They will also provide information on any additional fees that may apply, depending on their chosen depository and storage facility.
The company also provides an array of other services at no extra cost. For example, if an investor has a question or concern about their Gold IRA account, they can simply contact their customer service representatives and get an answer right away. With some dealers, this might not be possible unless you are willing to fork out additional fees.
Why Choose McAlvany ICA: Pros & Cons
McAlvany ICA is a reliable partner for any investor looking to diversify their portfolio with gold and other precious metals in an IRA account. They have a long history of providing great customer service and offering competitive prices on gold purchases.
Still, investors need to make sure that they understand the fees and costs associated with a Gold IRA account before signing up with McAlvany ICA. This way, they can ensure that their gold investments are profitable and have peace of mind knowing that their funds are in safe hands.
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