- 1 What Is A Gold And Silver IRA Investment?
- 2 Thinking About Taking The Next Step?
- 3 How Can I Get A Gold IRA?
- 4 What Is The Best Gold Backed IRA Provider?
- 5 Why This is Not a Decision I Made Overnight
- 6 Can I Buy And Have Physical Gold In My IRA?
- 7 Why?
- 8 Look Who Is Talking About It:
- 9 Is Investing In Gold A Good Idea Now?
- 10 Can You Buy Gold With IRA Money?
- 11 FAQ’s
What Is A Gold And Silver IRA Investment?
A gold individual retirement account when you move your traditional IRA or 401K to one that is backed by precious metals like physical gold, silver, platinum, or palladium. These are used in place of other more traditional IRA’s that hold paper assets like stocks and bonds. These offerings from a self-directed IRA company offer more diversity and one of the main reasons to choose these is to hedge against inflation.
Thinking About Taking The Next Step?
Back a few years ago, as I was getting closer and closer to retirement, I realized that the huge majority of my retirement savings was all in my 401K (except for a bit that was just in my regular bank accounts). This made me a bit nervous so I started researching different places to put my money and that is how I learned about investing in gold and other precious metals.
How Can I Get A Gold IRA?
People have been asking me how to invest in a gold IRA so I wanted to put the steps out there for everyone. In order to start one, you need to follow these steps:
- Verify that your existing individual retirement account (401K, etc) is eligible.
- Find a good gold IRA rollover custodian – and be sure to check out our recommendation here and get the free gold investment kit.
- Figure out how much your want to rollover into physical precious metals like gold bullion, silver, platinum, or palladium.
- Execute the gold IRA rollover and enjoy more financial stability and more money for the future.
What Is The Best Gold Backed IRA Provider?
Over quite a few months, I researched, made calls to gold companies and learned as much as I could about this in order to make sure that I was making the right decision. Ultimately, I did end up choosing a great company when ready to be moving a portion of my 401K to this and after all the research, there seemed to be one company that went above and beyond and made me comfortable enough to do this. Regal Assets (click here for more information) and here is why and my review.
Why Would I Choose Regal Assets Over The Others
First off, they have been in the business for years – around 12 years to be a bit more exact. The good thing about them as well is that they not only can provide you with the precious metals, but they are also great at helping you through the tedious process of rolling over your traditional IRA into a better gold backed IRA. They can make it a lot more simple and painless!
What Are The Benefits Of Investing In Gold?
- Gold provides a hedge against inflation. Historically, gold increases in value as the cost of assets increase, due in large part to the declining value of the U.S. Dollar (USD). When the Federal Reserve announced that it would effectively print money to boost economic activity, the USD quickly declined in value, causing gold to increase from approximately $800 per ounce in 2009 up to $1800 per ounce in 2012.
- Gold is a physical asset that investors can see and hold. It is not traded directly on the stock market, but investors have the benefit of holding something real versus a paper asset. It tends to hold its value over time because of its varied usage in products ranging from jewelry to electronics.
- Gold also has the luxury of increasing in value when demand is high, which generally occurs when people feel wealthy. The Federal Reserve’s recent efforts could have that effect once again as global economy recovers. Gold always has underlying demand regardless of market or economic conditions. Some company stocks may decline in value overnight on a bad news announcement, but gold is a precious metal that attracts buyers for a variety of reasons.
- Owning gold bullion versus the related ETF can reduce exposure to market risk. When stocks decline due to a market event, portfolio managers may be forced to sell one asset in order to protect their investment in another. In the case of the gold ETFs, that could lead to unnecessary selling simply to raise cash.
Why This is Not a Decision I Made Overnight
This involves my retirement savings that I worked years to save so I definitely want to know that I am in good hands – and because of this, I did all the research I could. I looked at all the top companies and compared them with each other. I looked at all their reviews and how others reported working with each of them. I check BBB listings. I spoke to friends. Everything. I really did a lot of homework here!
The best advice I can give you is, read my review, but call the companies yourself. A lot of the best information is in the conversations you have with the company experts.
More Information On Investing In Gold
As you are about to see, choosing a gold and silver IRA can have a huge impact on your retirement savings and help you:
- protect your retirement savings from inflation
- save on tax
- increase growth potential
- and my recommended top rated custodian
I hope this this helps you in your own decision for your retirement savings. Be sure to take a look at my recommendation on the right hand side of this page to see if they may be the right fit for you.
Can I Buy And Have Physical Gold In My IRA?
When I first got started researching this excellent option and alternative to a traditional Individual Retirement Account, I have to admit that I did not know too much about them either. Luckily, in my research I found that basically, it is an individualized retirement funds account that is backed by precious metals. These metals, such as gold, are held at a secure location on your behalf and works just like a regular new account (only like I mentioned, it is backed by gold (in the form of bullion or coins) instead of paper assets).
There are many reasons that owning gold within your IRA is a smart investment strategy. There are two main reasons that I think people need to invest in gold.
- Gold is not a company (and therefore cannot “go under”.
- No one can print more gold (it is truly a precious, finite resource)
If gold is not currently part of your investing and retirement strategy, then I strongly suggest you think about adding it to your portfolio. You can fill out the form on the right hand side of this page to learn more about a gold IRA rollover plan, how it works, and how it can work for you.
Look Who Is Talking About It:
Is Investing In Gold A Good Idea Now?
YES! Actually, in my opinion, you probably should have already done it yesterday but NOW IS DEFINITELY A GOOD TIME! Here’s why:
Over the next couple years, it is expected that gold may rise to unprecedented levels. People that choose to take action now should reward you with huge gains when this time comes. I know that I wouldn’t want to be left behind….would you?
Can You Buy Gold With IRA Money?
Investors can choose from several ways to purchase gold in their IRAs. Investors can add gold exposure to their portfolio through the stock market in the form of an exchange-traded fund (ETF), such as the S&P Gold Shares ETF (Ticker = GLD), or indirectly by investing in a gold mining company, such as Newmont Mining Corporation (Ticker = NEM), which owns gold reserves worldwide and actively explores for new deposits. These investments offer liquidity as they are actively traded during market hours, giving investors the benefit of owning gold without the added expense of storing it themselves.
Investors can also hold gold directly through a gold Individual Retirement Account, which is designed to purchase and hold actual bullion in the investor’s name. These are purchased directly from gold dealers versus using a traditional advisor or broker. The dealers serve to create a market by connecting buyers and sellers and can help investors arrange how they would like to store the asset. They do so at a price, taking a commission on every transaction that is often much higher than what an investor would pay a stock broker.
1. Why Should I Have Some Of My Retirement Savings In Gold
I encourage you to spend a few minutes watching this short video that explains more:
2. What Percent of My Portfolio Should be Put Into Gold and/or Silver?
If you wanted the video above, this question was answered there but it was gone over kind of fast – I actually missed it the first time I watched the video. Many financial experts are recommending about 10% – 30% of your retirement plan should be put into gold using a self directed individual retirement account and other precious metals.
To add to this, I looked into this a bit more and found that this recommendation is also expanded out depending on how much money you have to invest. People looking to invest more than $100K may want to look at even diversifying the metals and have a good mix up of not only gold, but silver, palladium, and platinum as well.
3. What Are Some Things That I Should Know When Looking At A Gold IRA Company?
When I am looking at a big decision like this, I always like to do my homework and make sure that the company that I choose to purchase from is the right one for me. I already gave you my recommendation above, but what are some other things that you should consider should you want to look at other options?
- Look at their Better Business Bureau Rating.
- Look at sites like Trustlink.org to find reviews on the different companies that you are looking at. Just like I did for Regal Assets (shown in My Recommendation section earlier in this article.
- Look at the types of metals they have available. Especially if you are going to be investing a large sum of money, you want them to have a number of different types of metals available.
- Find out how easy it is to liquidate should you need to. Do they offer a buy back program and if so, do they offer a fair value?
- Make sure to find out if they have any additional fees for things like setting up the IRA and storing the metals.
4. Is Gold A Risky Investment?
Investing in gold comes with certain risks that may not be apparent when considering it against other portfolio ideas. Compared to stocks and bonds that are traded on the open markets, physical gold is relatively illiquid. Investors would have to find a dealer to help them dispose of their gold assets, and that dealer would charge a fee for finding a buyer. Investors who hold real gold bullion would have to find a way to store it, which can be costly over time. Anything held in a physical location could also be lost, stolen or damaged. While insurance could help recover the value of the lost items, it also comes at a cost.
Deflation or changing economic conditions could also cause the value of gold to decline. Gold has a tendency to fluctuate wildly due to its perceived value relative to other investments. When investors have concerns over the USD or other paper currencies, they may flock to gold due to its value as a real asset. At the same time, if people are concerned about deflation or a slowing economy, they will be less likely to purchase luxury items such as jewelry. The perceived lack of interest in gold could cause its value to decline faster than stock in a company.
5. Who Should Have Gold In Their Portfolio?
All investors should consider adding gold to their portfolio as part of an overall diversification strategy. Since it has a tendency to move with little correlation to stock market movements, gold can help reduce risk over time. Investors should always have liquid assets available for emergencies, so gold should only represent a small portion of the portfolio. Despite its demand, it is not something that investors can dispose of quickly, unless the investor is willing to sell it at a deep discount.
Investors with a long-term horizon would best benefit from owning gold due to its ability to change direction when you least expect it. If a mining company discovers a new method of extracting gold, the increase in supply could cause a rapid decline in gold’s value. The opposite is true if a country looks to stockpile gold and essentially take it off the market.
Owning gold bullion directly or indirectly is not for everyone, but it could make sense as part of your portfolio. Some believe that as paper money becomes more ubiquitous, the global economy will seriously consider moving back to a gold standard for all financial transactions. While that is not a likely scenario, gold remains the oldest form of currency and should continue to attract interest from investors and collectors alike.
6. What Is A Gold IRA Account and How Can I Add Gold To It?
In order to add gold to an IRA, you must work with an IRA custodian who is equipped to handle gold. In fact, most financial companies are not equipped to handle gold, which is why many people will rollover part of their IRA into a self-directed IRA which opens up the world to all kinds of alternative investments (such as real estate, private equity, and of course precious metals).
There are a variety of IRA custodians who handle precious metals accounts, you just have to find one that is trustworthy and has a proven track record.
7. What Does IRA Approved Gold Mean?
It is important to note that the IRS requires that the precious metals you include in your IRA meet certain purity standards. In order for gold and silver coins and bullion to be eligible for an IRA, they must have a fineness of 99.9% pure gold or silver.
Some of the more popular precious metal options to include in your IRA are American Gold Eagle coins, Canadian Gold Maple Leaf coins and American Silver Eagle coins as they all meet the criteria outlined by the IRS.
7. What Types of Investments Can be Rolled Over into a Gold IRA Plan?
There are a wide variety of investments that can you can use to start your precious metals IRA. In fact, most employer plans including 401k, 403b, and existing IRA accounts can be used to fund your new options. In fact, these are some of the most common means individuals use to fund their accounts. Of course, you can also open your account with cash if you choose to do so.
8. Are Gold IRA Rollover Plans Backed by Real, Physical Gold? Where is it Stored?
According to IRS regulations, the owner of the IRA cannot store the gold, it must be stored at an approved precious metals depository by the IRA trustee or custodian. There may be small fees associated with setting up your precious metals IRA and storing them, however these fees are small and may even be waived in the first year for certain investors. Again, this is something you can learn more about by picking up our free investor kit.
So unlike some companies who offer “paper gold” (if you are going to invest in gold, why would you want something not backed by physical gold? That makes little sense) a precious metals IRA through our recommended company, Regal Assets does offer physical gold ownership within your IRA account.
If you are seeking to join many others that took that first leap into investing a portion of their retirement savings into gold, it is easy to start – just visit my recommendation at regalassets.com.