Among the best ways to save for your retirement would be to start an IRA account. An Individual Retirement Account allows you to put away a certain amount of money tax free every year and these funds will then be withdrawn when you reach retirement age. IRA accounts are commonly compromised of stocks and with the market being as unstable as it has been over the past few years, many are looking for alternatives to the traditional IRA. One approach that is emerging in popularity is a gold IRA.
This should not come as much of a surprise. Gold has been setting records over the course of the past few decades. To change the focus of a traditional IRA from stocks to gold makes perfect sense. All you have to do is understand a few basic aspects of how to launch a gold IRA.
The Main Benefits of a Gold-Backed IRA
Those not sure why they should seriously consider a retirement investment in gold should simply look at a common fact about gold investing. Namely, gold can provide the perfect hedge to traditional stocks, bonds and mutual funds. Gold has been shown to do well when the price of stocks, bonds and mutual funds decline. Therefore, gold can counterbalance some of the volatility which is common with other investment assets.
No one wants to risk their retirement funds. To place a retirement portfolio at risk would be disastrous. For many, gold has emerged as a way of reducing risk since gold has performed quite well over the past several years. This alone would make a gold IRA appealing.
One of the other major benefits to hedging a retirement portfolio with a gold IRA would be the huge potential return on an investment which could be acquired. Gold has literally set records that surprised even long time, experienced investors and traders. This means those that would have invested in a gold IRA in prior decades, the net worth of the retirement portfolio would have increased massively.
How to Invest Your Gold Through an IRA account
The first step would be to make sure that your IRA allows gold investing. If it doesn’t you will need to start a separate IRA for gold investing (don’t worry, the government allows you to have multiple IRAs). This IRA will require a named trustee who will hold onto the gold. (The issue surrounding a trustee will be explained further in depth in a later section) The account will then have to be funded, obviously since these funds are what will purchase the gold. This can be done through putting in regular contributions or adding funds through rollovers or transfers. Afterwards, investments in precious metals such as gold or even silver and platinum can be made. Some companies, like Regal Assets, simplify the process for you by handling all the tasks from beginning to end.
The Eligibility Requirements for Adding Gold to an IRA
The way the tax code in the United States works is that it is possible to own gold with traditional IRAs, Roth IRAs, Simple IRAs and simplified employee pension (SEP) accounts. However, there are certain restrictions that must be adhered to.
One thing that has to be immediately understood about investing in a gold IRA is that the United States government has certain restrictions placed on which type of gold coins and bars can be used in a gold IRA. Also, if you own gold bars/bullion in your IRA, the gold must be a minimum of 99.9% pure. Always be mindful about which gold assets you are acquiring so you can be sure you are adding only those precious metals which are allowed in an IRA. The coins and bullion must reach eligibility requirements or else they cannot be owned in an IRA.
The Trustee Factor
There is another regulation that comes into play when you wish to own gold in an IRA. The gold must be held by a trustee. You cannot acquire the gold and then store it in a safety deposit box or in a safe in your home. Once again, when you wish to add gold to your IRA you no choice other than to have the gold held by a trustee. There is no way to circumvent this rule.
Withdrawing From Your IRA
When the time comes for you to withdraw from your IRA, you can convert your gold purchases into cash. That is, you can convert the gold into cash if you so wish. You do have the option of receiving your withdrawals from your IRA in its gold form. This allows you the option of being able to hold onto the gold coins and bullion. Retaining it in gold form allows you to take advantage of any continual upwards trends in the gold market.
While a gold IRA may not be for everyone, there are many that will see the excellent benefits of such an retirement investment strategy. The process of owning a gold IRA is easy and it may deliver great financial rewards. For those reasons alone, looking closer into what a gold IRA has to offer is well worth the time investment.
Get Your Free Gold IRA Rollover Kit
Regal Assets is one of America’s most popular gold investment companies. They specialize in Gold IRAs and 401k Rollovers. They have designed a gold investment kit that contains all the information you need to know before you start investing in gold. For a limited time, we are offering you this kit free of charge (a $299 value!) in partnership with Regal Assets. Request it by filling out the form below, or call to request it by phone.