As we know, IRA stands for ‘individual retirement account’ and it’s a savings vehicle for all those looking to prepare for their days after work. With a basic IRA, you can save on taxes while choosing whichever investment you want including mutual funds, index funds, bonds, or stocks. For example, you could set up an IRA and fund it with a simple index fund.
For many years, this was ideal because it allowed money to be set aside ready for retirement. However, there has been one problem in recent years; we can no longer trust stocks, mutual funds, index funds, and bonds. Since they’re all tied to the economy, our IRAs lose value whenever the economy stumbles and this is starting to become a habit in an economy that was once considered ‘invincible’. With this in mind, many are choosing to turn to a different solution and it’s one we’re discussing in more detail today; Gold IRAs.
What Is Gold IRA About?
Rather than investing in stocks and bonds, and therefore the economy, a gold IRA invests in…you guessed it, gold. Normally in coins or bars, this means you aren’t susceptible to fluctuations in the economy and you know your retirement fund will never drop below a certain value. Why? Because gold is a precious metal and will always be in demand regardless of what happens.
Depending on where you are in terms of a retirement fund, a gold IRA will normally be set up as a Roth IRA (paid for with post-tax money – what is Roth IRA?) or using pre-tax funds. If you have a self-directed IRA, the Internal Revenue Service has made it so you can choose bars and coins from a selection of approved precious metals including gold, silver, palladium, and platinum.
Recently, with the question of ‘what is gold IRA about?’, many have been misinformed because there seem to be misconceptions aplenty in the industry right now. Rather than being restricted, the choices are actually vast with this solution because you can actually invest your IRA funds into paper investments in the traditional way too.
If we were to deal with another misconception, the process no longer takes weeks and months to complete. As long as you find the right company, such as Regal Assets, you can have your account in days and the switchover can be completed almost effortlessly.
Finding A Trustworthy And Reliable Custodian
If you’re to make the change, you need to find a reliable custodian because this is a big decision. Over the years, you’ve probably contributed and earned a significant amount of money towards your retirement so getting this decision right will allow you to keep your money secure and be happy as you move forward with the next stage of your life.
With a simple search online, you’ll see there are several options so we urge you not to rush into a decision. In the past, many have made this mistake only to regret it soon after. When choosing a custodian, there are a number of factors to consider;
Track Record – Firstly, we suggest looking into the history of the company and this can be achieved with the Better Business Bureau (and their customer service rating), the Business Consumer Alliance, review websites, customer review websites, and even social media. If a company has poor reviews on multiple platforms, reconsider and find a more reliable service.
Company Approach – With any business you choose, they’re going to advertise and tempt you into choosing their service. However, they should also appreciate that it’s a big decision and the very best companies will help you with this decision. By providing learning resources and various other tools, so you’re in a stronger position to do what’s right for your future, these companies will be on your side rather than just looking for your custom.
Flexibility – Next up, we believe the best custodians cater to the needs of everybody. Since we’re all unique, they should personalize their service depending on what you need. Rather than taking the one-size-fits-all approach (which normally fits nobody!), you can talk with the service and have your needs met at every step of the way.
Ease of Use – With a gold IRA, the practicalities are quite tricky but everything should be looked after on your behalf. From switching the account to owning the precious metal, the company should be responsible until you have the metals in your possession. Furthermore, the gold should be kept in a safe and secure location at all times.
Licenses and Qualifications – Finally, we also believe you should choose a custodian who can proudly show off their licenses, qualifications, and even insurance to protect your money. When conversing with them, don’t be afraid to ask for their licenses just to ensure they’re allowed to trade and help you with the move.
Fees – Nowadays, the fees for such services can actually vary greatly. While some will charge you increasingly as the gold IRA gains value, others have fixed fees regardless of how much your investment is worth and we tend to favor the latter. Since it allows you to plan ahead, this is the better option (plus, you aren’t being punished for increasing your worth!).
What is Gold IRA About? FAQs
Can I buy physical gold for a 401(k)? – With either a self-directed IRA or 401(k), you can buy gold bullion and coins. For those with a conventional IRA, they very rarely get a say on where the investments are focused but a self-directed plan allows you more control over decisions and precious metals will be among these decisions.
Can I rollover my IRA or 401(k)? – Once again, this is a definite ‘yes’ and your custodian should help you with the process. In law, rollovers are now allowed from IRAs in addition to 401(k) plans. However, it also goes further than this because other retirement plans are also allowed including 401(a), 403(b), 457, annuities, and Thrift Savings Plans (TSP).
Is the decision of custodian really important? – In short, yes. If you choose the wrong gold IRA firm, you can lose money, time, and a whole lot of patience. With the right firm, everything will be done in good time and you won’t be
inconvenienced in the slightest. If you choose from the most reputable companies, they offer the best service in terms of time and money, everything will be done on your behalf, and you don’t have to worry about rising costs (with some).
Why Choose Gold? – To finish, we’ll answer the most common question of all; why gold at all? Today, we’re living in insecure times and it feels as though the economy could fall at any moment. The moment it does happen, we all lose money through our regular IRAs. With a gold IRA, we take advantage of the fact it’s a precious metal, it has a
minimum value, and we can’t be affected by the economy. Furthermore, the fact that central banks and huge organizations are investing heavily in gold says it all.
What is gold IRA about? It’s a superb solution for those wanting to protect their worth in the coming years and it’s a solution quickly gaining attention!
I hope you enjoyed this post and if you have any questions about Gold IRA or want to leave your own personal experience, leave a comment below.
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.