Gold IRA Accounts
Setting up an IRA, or Individual Retirement Account, is an important step in preparing for your financial future. Making smart decisions today can affect your ability to take care of your family and maintain a comfortable lifestyle in the coming decades. That’s why it’s paramount that you pick the right type of IRA, and why a gold IRA is the correct choice to protect your precious future. For the last two decades, investors have been reaping the benefits of building their retirement portfolios with timeless, tangible gold, silver, palladium, and platinum assets rather than flimsy paper-based resources like stocks, bonds, and cash. While a gold based IRA might have seemed out of reach in past years, recent modifications to IRS regulations now allow anyone to invest in this wiser way. Below, Capital IRA Partners explains just how you can experience all the glittering advantages of a gold IRA.
How Gold IRA Investment Works
Due to its beauty, rarity, and versatility, gold has been considered a valuable commodity for centuries, or perhaps even millennia. In past decades, people invested in precious metals by holding on to coins, jewelry, bars, family heirlooms, and other valuable products.
A physical gold IRA streamlines and standardizes this process. This type of retirement fund works exactly like a conventional “paper” IRA, but replaces the typical mutual fund and stock assets with physical bullions, coins, and bars made of precious metal. In some instances, a gold backed IRA can also include more traditional investment vehicles such as stocks or mutual funds that are linked to, and ultimately driven by, precious metal resources.
Furthermore, you can trust in the quality and security of your precious metal investments with a physical gold IRA. Unlike the jewelry you think might be worth something or the silver bar rusting in your basement, the IRS holds the precious metal assets in gold IRAs to strict standards for excellence and purity. When you work with an esteemed gold IRA investment firm, you can be sure that the gold, silver, palladium, and platinum you purchase suits these specifications. In addition, the IRS requires IRA gold to be held by a custodian, a third party such as a brokerage firm or banking institution. The custodian provides professional-grade storage and is responsible for making sure your IRA gold maintained according to IRS regulations.
Benefits of Investing in Gold Over Traditional IRAs
Conventional IRAs have many supposed benefits, but they are ultimately based on cash. Even the most unseasoned investors are familiar with the fluctuations inherent in stocks and mutual fund. If a particular stock soars in value, your retirement fund could expand, but the next day, a corporate fiasco could cut your assets in half. Particularly in a challenging economy, the dangers of the current money market are manifold. Staking your future on the seesaw of the stock market is akin to gambling with your retirement money.
One distinct advantage of gold and other precious metals is that they behave opposite to the stock market. This is probably due to the fact that when people are concerned about the hazards of the stock market, they tend to place more value in the enduring power of gold, silver, palladium, and platinum. This unique characteristic makes precious metals an especially effective tool for diversification. Putting physical gold in IRA vehicles balances the teeter-totter of the modern money market; they are the yin to paper assets’ yang. For this reason, having at least some of your retirement investing in an IRA is crucial. This way, even if your traditional IRA collapses, you can depend on your gold backed IRA to have at least
In addition to the variations of the stock market, currency itself is precarious. The dollar is subject to inflation and deflation, further bouncing your retirement fund up and down like a yo-yo. On a more essential level, cash only has any value because we, as societies, governments, and groups, decide that it does. In times of upheaval and unpredictability, the dollar could completely collapse, instantly reducing an entire traditional IRA account to a pile of paper.
In contrast, gold and similar metals have been considered precious for centuries. Due to their relatively limited supply (there is only so much gold on Earth) and physical attributes (gold will always be a shiny, malleable, durable substance), precious metals have a long history of holding their value. Of course, gold, silver, palladium, and platinum can also experience fluctuations in worth, but they will never be as worthless as a piece of paper.
Furthermore, gold based IRAs are what’s called self-directed IRAs, which means that you, as the investor, actively run the account. This allows you to take the wheel when it comes to your retirement. In addition, self directed gold IRAs often lack the frustrating restrictions that come with traditional IRAs, such as yearly contribution limits, income qualifications, early withdrawal fees, and tax penalties. In short, gold backed IRAs give you the freedom and flexibility to take charge of your retirement portfolio.
Developing a Plan of Action
If you’re ready to open a gold based IRA, Capital IRA Partners is here to offer our astute investment advice. As with any other retirement plan, you need to have a strategy to invest well. Since your self directed gold IRA is completely under your control, you can diversify it with investments in stocks, mutual funds, specific precious metals you prefer, and even other non-traditional IRA assets like real estate.
However, as is often said, with great power comes great responsibility. You will need to keep yourself informed, partner with qualified advisors, and monitor the account to ensure you enjoy all of its potential advantages. Since each person’s existing accounts, income, needs, and preferences are so different, we recommend finding a trusted custodian to help you navigate the new and exciting world of precious metals IRAs.
Gold IRA for Retirement
Precious metals are a particularly good investment for a retirement portfolio due to their lasting value and diversifying power. Saving for your golden years requires different tactics than trying to make a quick buck on the stock market. Gold, silver, palladium, and platinum make for a strong, reliable investment you can feel confident in, rather than worrying about putting all your eggs into a risky paper asset basket. In addition, since gold backed IRAs are self-directed, you can truly be in control of your retirement, rather than hoping your mutual fund manager will make smart decisions for your future.
For these reasons, many investors are transitioning from more traditional retirement account options to self directed gold IRAs. In addition to pursuing gold IRA rollover options from traditional IRAs, you can convert your 401(k) to a gold IRA. A 401(k) is very similar to an IRA, except that it is structured through your employer and payments are typically taken directly from your paycheck (meaning that they aren’t taxed). Like traditional IRAs, 401(k)s are typically limited to paper assets, and, therefore, pose all of the same risks and disadvantages. They also have many of the same challenging restrictions, exorbitant fees, and rigid eligibility requirements.
Fortunately, there are experienced firms who can help you transform a traditional IRA, 401(k), or other retirement vehicles into a gold retirement account. Their accomplished consultants are available to walk you through this process and assist you in setting up an outstanding gold IRA investment plan.
IRA Recommended Gold
Of course, the precious metals themselves are the cornerstone of your physical gold IRA. As discussed above, you can’t make just any piece of gold, silver, palladium, or platinum part of your IRA. The IRS enforces high standards for IRA gold, which helps to maintain the value of your assets and standardizes the gold IRA investment process. Various coins, bars, and bullions qualify for IRAs, based on their fineness, purity, and lasting worth.
For example, IRA eligible gold includes American Eagle Gold Coins, American Buffalo Bullion Gold Coins, and Credit Suisse Gold Bars, among other types. Similar standards apply to silver, palladium, and platinum, with specific coins, bars, and bullions approved by the IRS. A trusted custodian will help you understand the nuances of IRA eligible gold and assist you in selecting appropriate assets for your physical gold IRA. It is important that you collaborate with a trustworthy consultant, since some less scrupulous advisers may attempt to sell you precious metals that are not actually IRS approved for your physical gold IRA.
FAQs About Self Directed Gold IRAs
Below, Capital IRA Partners answers some of the most common questions potential investors have about gold based IRAs.
How Do I Start a Gold IRA?
If you’re interested in pursuing a gold IRA to diversify and strengthen your retirement portfolio, you can start one by contacting an expert adviser or firm that will act as custodian. Typically, this process begins with opening a basic self directed IRA and choosing the types of precious metals you’d prefer to fill it with.
Can You Store IRA Gold at Home?
If you complete a complex series of steps and fit the IRS’s stringent requirements for doing so, you may be able to store your IRA gold at home, but most investors simply choose to keep their assets elsewhere, since this tends to be more secure and convenient. In many cases, attempting to store your gold at home could be in violation of IRS rules, putting your IRA in jeopardy and potentially subjecting you to hefty tax penalties (in some cases, over one-third of the value of your assets).
Gold IRA self storage is not permitted under any circumstances—you must have a custodian for your assets, even if you end up storing them at home. If you want to pursue a home storage gold IRA, you must form an LLC (which involves various costs and paperwork), provide a written application to the IRS indicating that you fit their strict requirements for custodianship, and gain the IRS’s approval before you bring the precious metals onto your property. For these reasons, Capital IRA Partners typically suggests eschewing a home storage gold IRA in favor of other options. Most reputable investment advisors will recommend that you store your IRA gold in a bank or depository.
Where Do I Buy Gold for an IRA?
You can purchase precious metals for a physical gold IRA with the assistance of an IRA custodian. This qualified professional will help you select which assets to invest in and he or she must perform the actual transactions, per IRS restrictions. It is important to choose an experienced custodian who knows which precious metals the IRS accepts in physical gold IRAs and knows how to appropriately store them.
How Do I Choose an IRA Custodian?
This is the most important decision you will make in creating your self directed gold IRA. A suitable custodian will have a proven track record of success with gold IRAs, years of experience, a plan for minimizing your risks, the capability to quickly liquidate your precious metal assets when you are ready to cash in your investment, and an excellent reputation. Capital IRA Partners can help you find an exceptional custodian.
Are you ready to begin reaping the rewards of a gold based IRA?
Contact our trusted partner, Advantage Gold, to help you roll over eligible 401(k) accounts and traditional IRAs into precious metal IRAs.
Furthermore, if you’d like to learn more up-and-coming investment strategies including and beyond gold IRAs, get access to former fund of fund manager James Altucher’s exclusive stock picks and suggestions.