Most people who reach out to KEPM already know they want to own precious metals. The question that comes up most often isn't whether to buy, but how. And for most people, it comes down to two paths: a straightforward cash purchase, or a Self-Directed IRA.
Both give you ownership of real, physical gold and silver. The right choice depends on where your money is right now, what your goals are, and how you want to access your metals down the road.
Here's how each one works.
Cash Purchase
A cash purchase is the most direct way to own precious metals. You're taking funds from a checking or savings account and converting them into physical gold or silver. Once the transaction is complete, you own the metal outright.
It's simple, and for a lot of people, that simplicity is exactly what they're looking for.
Where Does the Metal Go?
With a cash purchase, you have two options.
Home Delivery: If you want your metals within arm's reach, we can ship them directly to your door. Once your purchase is processed, your metals are overnighted with discreet, fully insured shipping. You get 24/7 access with zero monthly storage fees.
When you're ready to liquidate, our friends at Texas Precious Metals Depository provide a fully insured shipping label so you can send your metals back to them with confidence.
Professional Depository: If you're purchasing a larger amount and prefer the peace of mind that comes with professional storage, the Texas Precious Metals Depository is a great fit. Your metals are stored in a monitored, insured vault for a small annual fee.
One important detail: your metals are fully segregated, meaning they are never mixed in with anyone else's holdings. What you buy is what sits in that vault with your name on it.
Another benefit of depository storage is instant liquidity. When you're ready to sell, your funds are available within days.
A practical note: We generally recommend keeping no more than $5,000 worth of metals at home and storing the rest in the depository. But the choice is always yours.
Self-Directed IRA
Most people think of retirement accounts as stocks, bonds, and mutual funds. But a Self-Directed IRA lets you hold physical gold and silver inside a tax-advantaged account. Same IRA benefits, real metal in the vault.
How to Get Started
Roll over an existing account. If you have an old 401(k) from a previous employer or a traditional IRA, our team can help you roll those funds into a new Self-Directed IRA. When done correctly, this is a tax-free event. The money moves from custodian to custodian, so the check never hits your personal bank account, which keeps the IRS happy and your taxes at zero.
Open a new account. If you don't have an existing retirement account to move, we can help you open a new Self-Directed IRA from scratch.
Where Does the Metal Go?
With a Self-Directed IRA, your metals are stored at Texas Precious Metals Depository in a monitored, insured vault for a nominal fee. Just like with a cash purchase, your holdings are fully segregated. Your metals are yours and yours alone.
Frequently Asked Questions
Do I have to pay sales tax when I buy?It depends on your state. Some states exempt precious metals from sales tax, while others don't. Your KEPM advisor can walk you through what applies to you.
Can I sell my metals back easily?
• Yes. With KEPM, you pay just 8% over wholesale when you buy, and it's always 0% to sell back. No commissions on the way out.
What happens when I turn 59 1/2 and want to withdraw from my IRA?
• You have two options. You can take an "In-Kind" distribution, where the depository ships the actual physical bars and rounds directly to your home. Or you can liquidate the metals for cash, which we handle at 0% commission.
Can I put coins or bars I already own into a Self-Directed IRA?
• No. All contributions to a Self-Directed IRA must be made in cash. The only exception is transfers and rollovers from existing retirement accounts.
Is the rollover process complicated?
• Not when you have help. A direct transfer moves the money from custodian to custodian without it ever touching your personal bank account. Our team walks you through the entire process to make sure your account doesn't take a tax hit.
How do I decide which option is right for me?
• That's exactly the kind of question our advisors are here to help with. It depends on where your funds are, your timeline, and what you're trying to accomplish. When we connect, we'll walk through your situation together and help you find the path that makes the most sense for you.
Have questions? Before your conversation with your KEPM advisor, jot down any questions that came up while reading. Having them handy will help you get the most out of your time together.
