Gold can be an attractive investment opportunity, but like any asset class it might not suit everyone. Before opening a Gold IRA, discuss its risks and benefits with your financial advisor or tax professional.
Physical gold investments can help your retirement portfolio diversify, but you will require a custodian who allows these types of investments – request one by requesting a free information kit today.
Self-directed IRAs
When purchasing physical gold in an IRA, the Internal Revenue Service requires you to work with a custodian who will take care of all administrative duties for managing the assets within it. Your custodian could be any bank, trust company or other approved by them in managing assets within it; they will oversee transactions, issue client statements and keep records related to it; as well as help find reliable dealers from whom you can buy precious metals and store them safely.
People across America are growing concerned about the decline of purchasing power of the dollar and are seeking ways to diversify their retirement portfolios with physical precious metals investments. Unfortunately, traditional IRAs only allow investors to hold paper assets like cash and stock; self-directed IRAs enable investors to add physical precious metal investments if desired – they simply work with an approved depository custodian and custodian to buy bullion from an accredited dealer, take physical possession of it then store it away safely at a third-party depository depository storage location before finally depositing it at an approved third-party storage location.
Traditional IRAs
Gold and other precious metals can be added to your retirement account in two primary ways. Either you purchase physical precious metals using retirement funds, or invest in gold-backed mutual funds or ETFs. Both investments are approved for inclusion within an Individual Retirement Account (IRA). It may be wise to consult a tax specialist regarding IRS rules regarding precious metals investments within an IRA.
Add precious metals to your IRA to diversify and balance out your retirement portfolio, with their lower correlation between paper assets such as stocks and bonds and precious metals helping reduce investment risk. Many individuals choose to add gold to their IRA by rolling over funds from another retirement account such as a traditional or Roth IRA, 403(b), 457(b) or Thrift Savings Plan. You have 60 days from when funds arrive to complete this process or face income tax and penalties. Once received by an IRA custodian, precious metals from distributors such as U.S. Money Reserve are purchased and stored at an IRS-approved depository; thereafter annual fees are assessed for storage and insurance costs by that IRA custodian.
Roth IRAs
Precious metals are an attractive retirement investment choice due to their low risk and high potential return. Unfortunately, however, the IRS has specific rules regarding storing and transferring precious metals. One approach for investing in gold may be setting up a self-directed IRA to allow ownership of unconventional assets such as alternative investments; an ETF backed by mining companies could also be purchased.
However, precious metals IRAs often incur higher fees than other accounts, including setup, transaction and storage fees for physical assets. Furthermore, some companies charge markup when selling gold that can quickly add up. Furthermore, many of these fees recur frequently and make it hard to break even on your gold investment. It is therefore crucial that before investing in a gold-backed IRA account and to consult an expert before proceeding.
Precious metals IRAs
Investing in precious metals is an excellent way to diversify your retirement account, provided it complies with IRS regulations and the law. Furthermore, physical gold investments must meet specific standards of fineness and purity to qualify as an IRA asset, with an established gold IRA company making sure coins purchased adhere to such criteria.
Gold ETFs, or exchange-traded funds (ETFs), offer another investment alternative that does not offer as many tangible advantages as physical gold does. You can purchase shares in one via your broker at any time throughout the day; however, they do not deliver all the same advantages.
Augusta Precious Metals offers self-directed IRA services like Augusta Precious Metals. Their investment options and relationships with trusted custodians may make this an efficient method to add gold to your IRA, though their fees may be slightly higher than traditional IRAs; plus their service is fast and convenient!
