In 2010 two students at UCLA were tasked with a class project of developing a business plan. These two students not only won first place for their plan, but they then took their idea and created Lexi Capital (official website), which helps investors to navigate the ever-fluctuating gold and silver markets. They specialize in buying and selling precious metals and coins and providing market insights to help consumers decide if and how much of this recession-proof asset is right for them.
If you’re curious about getting into precious metals and you’re not sure if they’re right for you, keep reading this Lexi Capital Review to find out if they are the best investment company for you.
Who is Lexi Capital?
As mentioned above, Lexi Capital was founded by two UCLA alums after creating a business plan for one of their classes. They took their idea and ran with it, creating a customer-focused company that specializes in precious metals.
After studying the financial destruction that is frequently caused by the housing and credit markets, politics, and deceitful bankers, the two classmates wanted to create a company that would make investing simple and transparent.
Lexi Capital wants to ensure that you’re maximizing your profits, which is something we all want when we invest in precious metals.
Investing with Lexi Capital
It is important to know that if you intend on using Lexi Capital for your investment needs, you will only be dealing in gold and silver. Their specialty is gold IRA rollovers and establishing silver and gold IRA’s. The demand for gold and silver is higher than other metals, so Lexi Capital decided to keep its focus there.
You can place other investments into your IRA account with them, however. The types of investments that can be placed into your account include:
- Real estate, deeds, and trusts
- Promissory notes
- Real estate investment trusts
- Closely-held stocks
- IRS-approved precious metals
- Tax liens and mortgages
- Limited liability companies
- Private limited partnerships
The custodian for Lexi Capital is STRATA Trust, a highly respected and reliable gold IRA custodian, however, you can always discuss with Lexi Capital your ideas for a custodian.
Lexi Capital also offers a large variety in their coin options, including special editions, numismatics, and semi-numismatics and they also offer up some information on the differences between being a coin collector and an investor, which is important to understand.
Fees and Pricing
Something I really appreciate about Lexi Capital is how transparent they are with their fees. These fees include:
- Set-up fee: $80
- Yearly storage fee: $100
- Administrative fee: $95 annually
This means your first year with Lexi Capital will cost you under $300, which is amazing.
Another positive for Lexi Capital is its Gold Assurance Plan. This plan offers investors a buffer from the constant market fluctuations with price protection for six months with a maximum of $500 for each ounce of gold and silver coins. They have additional fees if you want to include bullion, however.
Available Storage Options
If you have decided to use Lexi Capital as your investment option, you’ll need to know your storage options. Due to IRS regulations, you cannot store your gold bullion for your IRA at home. Lexi Capital has two storage providers, Brinks and Delaware Depository.
Depending on your personal investment needs, you may be able to have your precious metals sent directly to your home for a $14.95 fee for all orders less than $15,000.
It is important to remember, though, that if you decide to store your IRA investments at home, you are breaking IRS regulations and your IRA will be considered invalid.
Opening Your Lexi Capital Account
Opening your account with Lexi Capital is simple, with a short application process. Most accounts will be set up and funded within 7-10 days and involve the following:
- Complete an application-Complete an online application where you will provide the usual information as well as information regarding 401K’s and IRAs you may already have. If you want to roll over these accounts you will need to speak with a Lex Capital representative to give them the name of your administrator or custodian.
- Fund the account-Once your account is established you will need to fund it, either by cash, check, or rolling an existing retirement account over.
- Consult with an advisor-Lexi Capital offers each new investor a portfolio review by a professional. They will discuss with you your current portfolio and how to include precious metals.
- Purchase precious metals-You can now purchase precious metals for your IRA. Remember: all precious metals must be IRS-approved to be considered IRA-eligible.
- Ship precious metals-Once you’ve purchased your precious metals, you can have them shipped to your door or to a secure depository.
If you want to make an account withdrawal and you’re younger than 59 ½ years old, you will be assessed a 10% penalty by the IRS and you’ll be required to pay income tax on your withdrawal.
You can make this withdrawal from the Lexi Capital dashboard or by filling out a withdrawal form, but you must include how much you want to withdraw and why you’re taking it out.
The Verdict On Lexi Capital
There are many different options out there for your precious metals investments and it can be difficult to wade through them. Lexi Capital makes it easy and enjoyable for novice investors up to experts.
With their extensive investor education, excellent product selection, Gold Assurance Plan, and trained and experienced staff, you’re sure to find that Lexi Capital is a great resource for your personal investments and IRA.
Lexi Capital is one of the best precious metals and IRA providers out there and you won’t be disappointed by choosing them as your investment partner.
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