If you a valuable possession, you want to treat it as careful as possible, right? You do not want anyone to touch it, borrow it, and of course, ask for it. You worked for that something precious, yet people would like to ‘just’ ask for it. The fruit of your hard labor must be hidden in a safe place where you can only get it when you need it.
Now, do not wait for someone to grab those precious metals from your hand. Get a custodian!
You invest gold for your retirement fee in your individual retirement account or IRA, and you want to secure your wealth not only for safe keeping but also for the various benefit you could have out of it. Then you should find the appropriate custodian. Yes, finding the right custodian might be very tricky, but when you find the best, it will all be worth the risk.
So, what does a custodian do? A custodian executes investment directions from Individual Retirement Account or IRA owner. It is sometimes misinterpreted as a broker, but he is not. Do not get confused on that matter. It also does not sell investments.
Okay, so does a custodian have something that cannot be done? Unfortunately, a custodian cannot endorse investment advisors. It is a big no. Also, a custodian provides investment and act as an investment advisor at the same time. However, you need to understand that a custodian is a custodian, and an investment advisor is just way too different.
What more can a custodian do? A custodian coordinates with investment sponsors, facilitates distribution, performs tax reporting of IRS Forms 1099-R, provides Individual Retirement Account statements, receives and record income, gathers documents, executes documents, hold documents, and processes applications to establish IRA. He has a lot to do. However, the responsibilities bestowed on a custodian are those they have to do and that they do them with all their capability. A custodian knows everything regarding this matter. So, if you are a first timer on this field, finding the right custodian would be necessary.
Also, an investment advisor has a big role in your investment career; hence you should also have a background check on that person. One thing that you must consider is the capacity to be a registered advisor. You would never want to deal with the wrong guy, right? How? Simply ask him and look for some data that would verify that he is truly registered.