Everything You Need to Know About Investing in a Gold IRA
In this guide, we will break down what a Gold IRA is, provide tips for making prudent Gold IRA investment decisions, and answer common concerns and questions about adding gold to your investment portfolio.
What is a Gold IRA?
A gold IRA is an “Individual Retirement Account” where gold and other precious metals are stored in custody for your retirement account. It works the same way as traditional IRA except instead of holding paper assets, it hold IRS and IRA approved gold bullion coins or bars.
Top Gold IRA Investment Tips
Be an informed Gold Investor
Gold and other precious metals have held an almost timeless value. But is it wise to invest in Gold in 2018? Simply put, if you look at historical and present data, Gold must be a part of every savvy investors portfolio. With the current market seeing dramatic fluctuations, Americans nearing retirement are looking for the stability that gold and silver can provide.
6 important reasons to invest in a Gold IRA
Gold is a safe haven investment
Gold gives you stability and safety in an increasingly unstable world
Gold can diversify your portfolio
Never have all your “eggs” in one basket. Diversifying your portfolio with Gold gives you needed protection
Gold has historically good returns
Since the dawn of time, Gold has been a solid investment that has been relied on for generations
Gold offers a hedge against inflation
Gold can protect your retirement accounts against the threat of rising inflation
Gold gives you control over your money
Gold puts control back in your hands and takes it out of the hands of corrupt financial institutions
Gold is stable when the stock market isn't
When the stock market is at it’s weakest, Gold gives you stability and often performs at it’s best
What is the best and safest way to invest in gold?
The wisest way to diversify your portfolio with Gold or Silver is through an IRS-approved gold investment method. The number one choice of wise investors are Gold Individual Retirement Accounts (Gold IRAs). With a Gold IRA investors get the stability of gold bullion with the tax and other benefits of an IRA.
Which Gold, Silver, or Precious Metals IRA is right for you and your family?
There are many gold ira providers in today’s market offering a wide array of options. With so many companies and options, it’s important to get good advice from a reputable company. A proven Gold IRA expert will give you unbiased advice based on your portfolio.
While many companies today may look credible, they shouldn’t be trusted. It’s important to do your due diligence, look at reviews and recommendations, and choose a company with a solid reputation and proven track record. The regulations on IRAs and Gold IRAs are extremely strict. A reputable company will recommend what percentage of your portfolio should be in gold. Those recommendations will vary on an individual basis. It could be as low as 5% or as high as 25% depending on how close you are to retirement and the size of your retirement account.
Additionally, you don’t have to just hold gold in your IRA. Adding in platinum, palladium, and silver can also be a good option. A solid investment firm will guide you as you look at your options and protect your wealth.
Choosing the right Gold IRA can protect your retirement account.
Should you choose Gold coins or bullion?
IRAs often store your gold in gold bullion or gold bars. These are a great option for secure storage. However, gold bars aren’t as easy to liquidate as gold coins. This is why many investors look for plans that keep their investment in coins. Having either all or a portion of your precious metals investment in coins gives you peace of mind should you need to liquidate in a hurry.
It’s important to know that not all gold, silver, platinum, or palladium coins are IRA approved. This means coins that are not approved cannot be used in an IRA investment. Another reason you need to make sure you choose a reputable gold investment company.
The most popular IRS and IRA approved coins are:
- American Eagle Gold Coin
- American Eagle Silver Coin
- American Eagle Platinum Coin
- Maple Leaf Palladium Coin
In addition to these, the IRS has approved eleven other 1 oz coins.
Talk to a Gold IRA expert before buying and be wary of scam artists who will sell you un-approved or even counterfeit coins.
IMPORTANT: Know your Gold storage options
Will your gold, silver, or other metals be stored alone? Or will it be stored together with other investors? These are important things for you to know when choosing a Gold IRA company.
What does "Segregated Gold Storage" mean?
Segregated storage means your metals will be held securely in a separate storage area independent from other investors. Segregated storage is the safest and most secure way to hold your precious metal investment.
It is important that you check with your Gold IRA company whether their storage is segregated or communal.
Should you store Gold at Home?
Many investors opt to keep a percentage of their gold investment in home storage. Home storage can have certain drawbacks. Since home storage is not an IRS-approved method of IRA investment, you could incur certain tax penalties for keeping your gold in home storage. However, in the event of a natural disaster, terrorist act, or another calamity, many investors like having gold in hand to protect themselves. In the event of a disaster when banks and other funds aren’t available, gold can be liquidated and bartered to protect yourself and your family.
Let your Gold IRA mature
Life happens, and sometimes you need to access your IRA funds early. Like a traditional IRA, you can take distributions. With a Gold IRA you would receive the distributions in the form of physical metals, or the cash value. However, be informed before taking an early distribution. You will incur taxes and will be responsible for any liabilities to the IRS for withdrawing early. Your Gold IRA, or other precious metal IRA should be viewed as a long term investment and held till maturity.
Frequently Asked Gold IRA Questions
Below are a list of the most commonly asked questions about investing in a Gold IRA.
If I invest in a Gold IRA do I really own real gold?
Yes! In a gold IRA you own physical gold. Your metals will be stored in a secure and private depository vault. These metals are yours and you own them. You can track them online 24/7, 365 days a year and can even go see your gold in person.
Tip: It is essential that you choose a Gold IRA company that offers segregated storage. This means that your metals will be help securely in your name. All you gold will be stored at an IRS approved storage facility.
How do I know my gold is safe in the depository?
It is important to choose a Gold IRA company that stores your gold in a state of the art, IRS-approved, insured private storage facility. In addition to being stored with the highest level of security, your investment is also fully insured.
How do distributions work in a Gold IRA?
When it’s time to take a distribution from your gold ira, you have two choices:
- Your Gold IRA distribution can be safely sent to your home in physical gold.
- Your Gold IRA distribution can be liquidated and you will receive the cash value.
Tip: Not all Gold IRA companies offer a buyback program to liquidate your Gold. Make sure you choose a Gold IRA company with a gold buyback guarantee.
How do I transfer my retirement funds to a Gold IRA? Do I have to do anything?
You have two options to move your funds into a gold ira; a transfer or a rollover.
With a transfer your assets are moved directly from one custodian to another without you taking possession of your funds. This process can take between 3 – 7 days. With a transfer, you don’t have to do anything to get your funds moved into a gold IRA.
With a rollover you will take receipt of your funds and have 60 days to reinvest them into your gold ira plan. Your current IRA provider will send you a physical check that you will then invest in you new gold ira account.
Tip: Be sure to deposit your check into your gold IRA within the 60 day limit to avoid tax penalties.
Are there any taxes or fees to move my funds to a Gold IRA?
There are no fees to move your assets to a Gold IRA. As we stated above, just make sure to stay within the 60 day limit if you are doing a gold ira rollover. Any reputable Gold IRA provider will make sure you stay within the time frames.
Are all my retirement accounts eligible to be moved to a Gold IRA?
Here is a list of accounts that can be moved to a gold retirement account: 401k, 403b, 457b, TSP, Roth, SEP or SIMPLE IRA, and some pensions. It is important to speak to a Gold IRA expert to ensure your account qualifies. Every investor’s situation is unique, and a gold ira advisor can help educate you on all your options.
What will be my gold IRA fees?
Fees can range depending on your Gold IRA provider. A fair Gold IRA fee will range between $200 – $250 a year depending on where your gold is being stored. Be wary of Gold IRA companies that charge less than that amount. Their gold is likely not held in segregated storage which means your investment isn’t as secure.
Tip: Some Gold IRA providers will wave your first years fees for qualified IRA accounts.
Can I pull my gold out of my IRA whenever I choose?
Yes. You can pull out either a portion or your entire gold investment whenever you want. Similar to IRA distributions, you can either have the physical gold shipped to your house, or you can liquidate the metals and get the cash value.
How do I get started with a Gold IRA?
If you are looking to invest in a gold or precious metals IRA, the first step is to choose a company you trust. The Gold IRA company you choose must meet the following criteria:
- Licensed to manage IRS approved retirement accounts
- Licensed to deal in gold, silver, and other precious metals
- Be in good standing with the Better Business Bureau
- Must hold their gold in a segregated storage
- Must have excellent and verifiable reviews from past customers
To be matched with the right Gold IRA provider for you, take 3 minutes to fill out our Gold IRA Matcher. Based on your responses, you will be individually matched with the best Gold IRA company for your portfolio.