Should You Buy a Gold IRA? 

An Investment That Will Diversify Your Retirement Portfolio

Before we even start talking about investments, we need to understand clearly what a gold IRA denotes. Precious metals, like gold and silver, have been used for thousands of years. The reason is pretty clear – these metals are a store of wealth, and will always remain a safe haven asset. Including physical objects made of precious metals, gives you a peace of mind knowing that your retirement portfolio is diversified and one day, you can retire peacefully. So, simply put, a gold IRA includes any kind of gold bullion or coins you purchase for your retirement plan. 

So, is investing in gold IRA the right move for you? 

In times of economic uncertainty, the price for precious metals like gold and silver, for example, tends to rise in times. If you’re an owner of a 401k plan or an individual retirement account (IRA) and worried about inflation affecting your fortune, investing in metals is a smart long-term choice. The economy is unpredictable. We all saw what happened in 2008 on Wall Street. We all need some “insurance” in case the stock market crashes again. We all want to protect our hard earned savings and retire without worrying about the future. One way to improve your IRA strategy is to buy gold IRA. 

Rules you should be aware of before purchasing gold

There are two types of gold IRAs – traditional and Roth. The most significant difference between these two is how they are taxed. The advantage of the traditional IRA is that your contributions will be tax-deductible. For the Roth IRA – your withdrawals in retirement will not be taxed. Both versions use actual gold in the form of coins or bullion (bars or ingots). If you plan to invest in gold, you should know the law has certain criteria for it. The metals must meet IRS fineness standards and must be held not by the owner, but by an IRA trustee. The bullion or coins should be stored in an IRS-approved depository.

How to put IRA funds into gold? 

You need to find a broker and custodian. It can be any institution from the financial sector that holds your assets for safekeeping according to the IRS’s requirements. To buy gold IRA, you need to find a broker. A custodian is needed to create and administer your account. This organization will not only store and hold your actual gold, but they also have the right to act on your behalf. Custodians can be banks, credit unions, trust firms, savings associations, loan associations, and brokerage companies that have been approved by federal or state agencies to become investors or advisors.  

Gold’s uses outside of a 401k plan or IRA 

Besides being very helpful, having a few bars in the bank in case of inflation, keeping gold has other perks. It’s in high demand in certain industries as gold has many practical uses. For instance, the jewelry industry makes up more than 50% of the global demand for precious metals, and this demand just keeps rising. Gold is also used to make laptops, smartphones, tablets, gaming consoles, solar equipment, and much more. 

If you’re thinking about buying gold, you should know the four-step process prior to investing: 

• Step 1: The first step is to call an expert for guidance and advice. Only a professional with years of experience in the financial sector is able to answer all your questions and suggest the most reasonable solution for you.  
• Step 2: Once you have found your advisor and you’re ready to buy a gold IRA, the professional will complete your documents to set up an account and transfer or rollover funds from your existing 401k, employer-sponsored, or IRA plans to open the account. 
• Step 3: Afterwards, you need to return your completed paperwork and let the professional go to work for you. 
• Step 4: Your partner will open a self-directed individual retirement account and process the necessary paperwork to transfer your fortune to your existing account without paying taxes or early withdrawal penalties. 

If you’re considering investing in a gold IRA, you should definitely consult an advisor regarding how the precious metals would fit with your overall goals. Just keep in mind that it’s a smart move to invest in precious metals as they never lose their value; on the contrary, in times of serious inflation, their price tends to rise immensely.