Are you considering buying gold for your IRA? Here is a comprehensive guide and helpful introduction to buying gold in your Investment Retirement Account (IRA).
Why Buy Gold In Your Retirement Plan?
The logic of the ownership of gold within a retirement plan is the same as with one outside the plan. Here’s a quote from a recent Vanity Fair article by Matthew Hart summarizes why gold should be part of each retirement portfolio:
“An ounce of gold in 2001 cost $ 271. It later reached $1,896 after 10 years, almost 700% increase. Within the mentioned period, it went through some of the stormiest periods in recent history, when currencies shivered, and banks collapsed, the price of gold fed on these calamities. Somehow it stood for them: it was the idol rediscovered at a time when other gods were falling into a heap of subprime mortgages and derivative products and credit default swaps too complicated to even comprehend. Gold shone with a certainty of the received tradition – honoured through the ages, the original money, the standard of wealth, the safe haven. Gold’s value was axiomatic. This vision depends on the concept of gold as unchanged and unalterable, the hard asset of nature.”
In short, gold is money, money that can’t be degraded or printed. What better ways are there to save for your retirement than with this ultimate savings vehicle – physical gold.
You can buy gold bullion and coins, and other precious metals, in a self-directed IRA, established with a trust organization. People with retirement plans usually have a conventional IRA with a brokerage firm or bank specializing in annuities, mutual funds, stocks, bank deposits and other assets. In most cases, the investors have little or no participation in the investments made. A self-directed plan empowers such individual to make their own investment decisions and add to the investment options available. Precious metals are among those options.
Can I Make A Rollover From My Current IRA?
Yes. In fact, most of the precious metal retirement plans start with a reinvestment. The current law allows for both IRA and reinvestment of qualified retirement plans, such as 457, 403(b), 401(a), 401 (k), annuities and Thrift Savings Plan (TSP). Regal Assets is a company that has a great experience with the process and can help you navigate with a minimum of brain damage. Due to annual insurance, storage and administration fees (approximately $150 annually), IRAs of gold are cheaper when they have a higher value, and this is where a reinvestment or rollover makes much sense. Someone who has just started an IRA, even with maximum annual contributions, would require a few years to accumulate an account large enough to be profitable.
What’s The Difference Between A Self-Directed IRA And My Current Plan?
All the rules, especially about tax treatment, which apply to conventional retirement plans, apply also to self-directed plans. Generally, conventional plans don’t permit diversifications into physical gold because of the special circumstances which accompany gold ownership – custodial, insurance and storage responsibilities. Typically, the client who plans for retirement and wishes to buy gold in physical form, i.e., bullion and coins, must register a new account with a trustee who allows self-directed retirement plans. Then, the client transfers funds from his/her current trustee to the new trustee that allows such special transactions.
How Can An Average Person Planning For Retirement Differentiate Between A Good And A Bad Vendor?
First, and most fundamentally: Check the profile of a company on the Better Business Bureau before doing business with them. Check not just the rating, but how many complaints, the kind of queries and how the queries were handled. A continuous record of queries can be a warning signal, even if the company has managed to maintain an A + rating. This is a direct and straightforward step that all first-time investors should take, but it is surprising how many take it lightly. Secondly, choose a gold company with a track record that is solid. 10 years in the business with a solid track record is comfortable. Thirdly, choose a company with the commitment to keep you informed, that is, one that is ready to answer your questions now and keep you informed in the future. If a salesperson gives you little importance or hits you with a too attractive sales pitch, take that as a warning.
What Are The Mechanics Of Gold Rollovers?
If you go with our recommended company Regal Assets they have made the setup process as simple as possible. You start by completing a secured online form on their website. Once this is done their retirement account team will put together all the appropriate paperwork for you and now everything can be signed electronically online. Their retirement team will do everything for you including working with your existing custodian to transfer the appropriate funds into your precious metals IRA account. Every step of the way they will keep you in the process so you know what exactly is happening. For you, the whole process is really a simple, hands-free process to rollover your existing retirement plan into gold.
Is Now a Good Time To Do A Rollover Into Gold?
Gold, first of all, is an insurance of wealth. You can’t approach it in the same way you do with investments in stocks or real estate. Time isn’t the real problem. The question is whether you believe or not that you need to have gold. If answered affirmatively, it does not make sense to delay your actual purchase or wait for a more favorable price which may or may not appear. A good strategy is a cost averaging. The real objective is to diversify so that the overall wealth isn’t compromised by dangers and economic uncertainties such as that generated by the 2008 financial crisis.
If you’re considering your options, feel free to get in contact with Regal Assets and they’ll supply you with a free Gold IRA Rollover Information Package. To receive this, all you need to provide is your name, email address, phone, and country!
Our personal recommendation to safeguard your future with gold is to contact Regal Assets, The #1 Rated Gold Investment Company 7 years in a row, Click Here To Request A FREE Gold Investors Kit.