You’ve probably seen the ads for Lear Capital and wondered if they’re legit or just another company trying to separate you from your hard-earned money.
Before you hand over your life savings or IRA to any gold IRA company, you owe it to yourself to do your due diligence.
In this overview of Lear Capital, we’ll review Lear Capital so you can decide if they’re legit and the right choice for you.
About Lear Capital – Who They Are
So, who exactly is Lear Capital? They’re one of the leading precious metals dealers in the U.S., helping individuals buy and sell gold, silver, and other precious metals.
Founded in 1997, Lear Capital is a privately held company based in Los Angeles, California.
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They have over 100 employees across the country in offices and vaults. Lear Capital is not a publicly traded company or a brokerage firm.
Instead, they act as a direct seller and buyer of precious metals on your behalf.
Some of the products Lear Capital offers include:
- Physical gold and silver bullion bars and coins
- Precious metals IRAs
- Rare and collectible coins
- Gold and silver ETFs and mining stocks
In addition to investment options, Lear Capital provides valuable market data, insights, and price notifications.
Lear Capital Fees
Lear Capital offers services to help customers ship and store their gold bars and coins.
If you choose to have Lear Capital store your precious metals and coins, there are storage fees that they charge you.
Fees are calculated based on the total value of your holdings. For secure storage in a depository vault, fees typically range from 0.5-1% annually.
However, Lear Capital charges an annual fee for their gold IRA, starting at $280 for the first year and $200 annually afterward.
This is higher than similar companies like Goldco, which charges $180 annually for a gold IRA.
Depending on the initial deposit amount, you may be eligible for waived storage and setup fees. The following criteria apply:
- Deposits over $10,000: The $50 set-up fee is waived.
- Deposits between $25,000 and $50,000: No fees for the first year.
- Deposits between $50,000 and $75,000: No fees for the first two years.
- Deposits over $75,000: No fees for the first three years.
Is Lear Capital Legit?
Choosing Lear Capital as a partner to diversify your investment portfolio can be a wise decision.
The company offers various options for investing in precious metals, including bullion, numismatic coins, and self-directed IRAs.
Lear Capital holds an AAA rating with the Business Consumer Alliance and is authorized by the Professional Coin Grading Service (PCGS) as a dealer.
They also have a good track record with over $3 billion in transactions in precious metals since 1997.
On Consumer Affairs, Lear Capital maintains a rating of 4.7 out of 5. This rating was based on over 1,100 reviews, demonstrating high customer approval.
Before concluding if Lear Capital is legit, consider the pros and cons, personal investment goals, and risk tolerance.
Pros of Using Lear Capital
Here are some benefits of gold investing with Lear Capital:
1. Personalized Assistance
Lear Capital assigns a personal specialist to work with you, providing personalized guidance and support throughout the investment process.
2. Transparent Fees
The company follows a flat-fee structure for precious metals IRA setup and maintenance fees, promoting cost transparency.
3. Potential Fee Waivers
Depending on your deposit amount, Lear Capital may waive storage and setup fees for a certain period, offering potential cost savings.
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4. Price Advantage Guarantee
Lear Capital aims to keep terms and fees transparent, providing a Price Advantage Guarantee to ensure clear pricing and minimize confusion.
5. Risk-Free Purchase Guarantee
Orders made with Lear Capital come with a 24-hour risk-free purchase guarantee, allowing you to make investment decisions with peace of mind.
Cons of Lear Capital
The potential drawbacks associated with Lear Capital include the following:
1. Annual Fees
Lear Capital charges an annual fee for self-directed IRAs, which adds to the overall cost of investing.
2. Bankruptcy Case
Lear Capital filed for Chapter 11 bankruptcy in 2022, which may raise concerns about the company’s financial stability and long-term prospects.
FAQ
How Can I Open a Lear Capital Account?
To open an account with Lear Capital, follow these steps:
1. Submit Contact Information
Visit the Lear Capital website to provide your contact information, including your name, email address, and phone number.
2. Contact from Representative
After submitting your information, a representative from Lear Capital will contact you to discuss your investment goals and provide further guidance.
3. Fill Out the Application
A short application form takes around ten minutes. This application will require some personal and financial information.
4. Account Setup
Your account representative will handle the setup process once you’ve applied. Your account will typically be opened within 24 hours.
5. Rollover Process
If you transfer funds from an existing IRA, Lear Capital will coordinate with your current IRA custodian to initiate a rollover. Depending on your custodian, this process can take up to five business days.
6. Fund Your Account
Once the money arrives in your Lear Capital account, you can purchase precious metals for your IRA. Lear Capital offers a variety of metals that you can choose from on their website.
How Can I Make a Withdrawal From My Lear Capital Account?
If you have an IRA with Lear Capital, withdrawals are restricted until you reach the age of 59½. Early withdrawals incur a 10% penalty and taxes.
When you’re ready to withdraw, Lear Capital offers two options: a managed sale where they handle the sale of your coins and bars or delivery of the metals to your home for local selling or storage.
Planning is crucial for managing the metals once they are delivered.
Which Coins Are Eligible for an IRA?
A complete list of Lear Capital’s IRA-eligible coins can be found on its website.
Generally, gold bullion must have a purity of at least 99.5%, silver bullion must be 99.9% pure, and platinum bullion must be 99.95% pure.
How Can I Monitor the Performance of My Lear Capital Portfolio?
Lear Capital provides access to a website through your IRA custodian, Self Directed IRA Services, Inc., where you can track your portfolio’s performance 24/7.
Additionally, Lear Capital offers quarterly statements conveniently mailed to your home address.
Where Are My Precious Metals Stored When Working With Lear Capital?
Lear Capital stores client metals at Delaware Depository, an IRS-approved depository.
The depository also provides a comprehensive insurance policy underwritten by Lloyd’s of London to ensure their safety.
Can I Make Contributions to My Lear Capital Account?
Absolutely! You can set a recurring schedule to automatically transfer contributions into your precious metals IRA with Lear Capital.
Conclusion
Although they aren’t perfect, Lear Capital is one of the more reputable gold IRA companies if you go in with realistic expectations.
Lear Capital has an A+ rating from the Better Business Bureau, meaning they value transparency, trustworthiness, and customer satisfaction.
While Lear Capital offers attractive opportunities for investors, consider consulting with a financial advisor before making investment decisions.
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