Roth individual retirement accounts can make an invaluable addition to your investment portfolio, particularly if they provide tax advantages that could lower tax brackets in retirement.
IRS rules generally prohibit IRAs from investing in collectibles such as metals; however, there may be exceptions.
How to Buy Physical Gold
Gold is an attractive option for individuals seeking to protect themselves against inflation, increase retirement accounts and diversify their portfolios. But, it’s essential that individuals fully comprehend the complexities involved with purchasing physical precious metals via an IRA account.
At first, you must open a self-directed IRA – this type of individual retirement account enables investors to invest in alternative assets such as precious metals or real estate.
An established custodian or broker should work with you to open a precious metals account. Select one with an impressive track record in the industry that offers competitive rates and fees, plus ensure it works with an established depository for storage purposes.
Once your account is set up, you can purchase IRS-approved gold coins, bars and bullion. When purchasing precious metals from refiners like NYMEX or COMEX approved refiners that come packaged in mint packaging. Your IRA provider may also ship directly to you; this may incur additional insurance and shipping fees.
Though physical gold may attract investors, it’s essential to factor in its associated costs. For example, IRA custodian fees can add up over time while storage fees should also be factored in depending on which custodian you choose and their fees could represent a considerable portion of your total investment amount.
Also, traditional IRAs are prohibited from investing in collectibles like metals; buying physical bullion or coins could violate this rule. A better choice would be a self-directed IRA that allows investors to diversify their portfolio with various assets including precious metals.
Lear Capital offers an IRA custodian solution that offers full service for precious metals in retirement accounts, helping customers open accounts, purchase desired metals, store them safely over time and offer other advantages like price match guarantees, 24-hour risk free periods and online portfolio tracking. Reach out today to learn more!
Gold IRAs can provide an effective means to diversify a retirement portfolio. But you should keep in mind that unlike traditional IRAs, Roth contributions are not tax deductible and early distributions before age 59 1/2 will incur a 10% penalty tax.
An important consideration when selecting a gold IRA company is finding one with transparent fees and high trustpilot ratings and positive customer reviews.
Your expenses in opening and maintaining a gold IRA include one-time and ongoing fees as well as storage costs and closing charges. Once you reach 72 years old and need to take required minimum distributions (RMDs), either selling your precious metals will become necessary or incurring costs for transporting and storing them will become necessary.
Gold does not produce income at the same rate that stocks and bonds do, making it less suitable as part of an retirement portfolio. Although still useful, its compounding returns do not match up to traditional investments.
Gold-based IRAs require you to pay additional expenses in addition to account setup and annual fees, including purchasing physical precious metals, paying storage fees for an IRS-approved depository where they will be stored, insurance costs and a seller markup on spot prices. All these fees can add up quickly over time.
As precious metal markets can be volatile, you should seek out a reputable company offering flexible purchasing options. Look for one with expert customer support staff and plenty of precious metal options that meet your portfolio’s specific requirements.
Augusta Precious Metals stands out with an exceptional Better Business Bureau (BBB) rating and Trustpilot score. Augusta prioritizes education for their IRA clients and offers safe storage solutions; in addition, their refund policy is generous and service excellent; prices are highly competitive as well. Furthermore, this company is often the go-to choice when looking to convert traditional Roth IRAs to gold-backed accounts.