Is it a worthy investment?
Is a Gold IRA really worth my time ?
Retirement accounts are one of those things that we realize that we need but don’t place real priority until much later on in life. There’s so much to know and understand about them and many people find themselves more confused than informed about it.
With that said, if that happens to be you too, don’t worry.. you’re not alone.
You might have even heard of accounts that hold gold, but what exactly is Gold IRA, and how beneficial can it be?
What is Gold IRA?
When most people retire, they hope to save their income without losing out too much. In this case, IRA (Individual Retirement Account) is an option that they often choose.
It is a form of a retirement plan that helps individuals get tax advantages and retirement savings.
Although most IRAs opt for typical assets like stocks and bonds or cash equivalents, there is also the option to have precious metals like gold or silver.
But the IRA does not permit every type of precious metal. Only qualified silver, gold, platinum, and palladium coins or bars are kept in the accounts based on the tax code.
Thus, a Gold IRA is an approved account where the individual receives the benefit to invest in physical gold coins and bars or other accepted precious metals.
How does it work?
To start an IRA, one has to find a ‘custodian’ who will help to hold the precious metals within the account. But the individual will also have to identify a legitimate and approved depository.
Once the account is ready, the person can buy precious metals like gold or silver (which are now physical assets) and then allocate them to the depository. After this, the appointed custodian can account for it.
American Eagle coins, Canadian Maple Leaf coins, Austrian Philharmonic coins, Sunshine Gold and silver bars, etc., are some widely accepted forms of physical assets.
Rollover or Transfer
Some people often get confused between a rollover and a transfer, so here’s one of the most basic differences.
Although many tend to consider any allocation of funds from a retirement account to another as a ‘rollover,’ it is not always the same term.
When funds are moved to another account (of the same type) where the owner doesn’t receive any money (to avoid penalties), it is called a transfer. It is often a custodian-to-custodian process.
A rollover can be direct or indirect, but generally, it means that one transfers their funds from one type of retirement account to a different one.
In that respect, a Gold IRA rollover is when one moves their funds (or converts part of it) into a physical form of assets like gold bars, coins, or bullion.
Differences between Roth and Gold
Among various retirement accounts, a Roth IRA is one where an individual pays taxes when money goes into their account, but their withdrawals in the future are usually free from any tax. This is a good option for those who expect their taxes to be more during retirement.
A Roth Gold IRA allows the account to hold precious metals like gold. It is specifically made by initial funds, Roth IRA rollover, or a traditional IRA into a Roth IRA backed with gold.
Benefits of Gold IRA
Various Gold IRA reviews point out the positives of this type of account. Even many investors agree that it could be a viable option among different retirement accounts.
One of the best benefits when you buy Gold IRA, is that you receive better control of your financial future. One can also expect a more manageable move into retirement. This sense of security is something that many people aim to achieve.
Further, this type of account also offers tax incentives along with savings protection using portfolio diversification. We can compare these features to a traditional IRA.
Apart from the benefits of the account, one can also consider the value of gold. This precious metal has been around for centuries as an excellent store of value. Many experts even claim that the value of gold at this age is still an undervalued estimate.
Gold has a remarkable ability to stay valuable with time. Thus people can often rely on it as a solid investment.
Some basics to know about Gold IRA investing processes.
Gold IRAs have various steps that one needs to understand, but here are some of them that people often ask.
• To have a Gold IRA, one must have a broker who will buy the gold and a custodian who will make and manage the account.
• Gold IRA may come with additional expenses like – Seller’s fee (markup), Custodian fee, Retirement account setups, cash-out fees, Storage fees, etc.
• The precious metals should fully reach the quality standards of the IRS, and a trustee of the IRA should hold it instead of the IRA owner.
• A Required Minimum Distribution (RMD) will be required for those who reach 72 years of age.
Does it carry any risks?
In the world of investments, almost everything carries one risk or the other, even if it’s gold.
One of the most significant risks of Gold IRA is the threat of theft. Since gold is a precious metal, it attracts the attention of thieves. This is also why the IRA doesn’t allow the owners to keep the gold in their homes.
If the depository gets robbed by chance, many people who invested in gold could lose their assets.
But this is also why depositories undergo strict rules and need to be ensured.
Another risk would be faulty custodians who might go against the law and take advantage of the gold in customer accounts.
Some of the best companies for Gold IRA investments
Gold IRA investments might not sound very appealing to everyone but there are many upsides to them which lends itself to why people do invest and seek them out. While there are many companies in this space, not all are reputable. Some of the better ones to consider include the following below:
Reputation is everything when it comes to your investments. Always do your own research before investing.
Here are some of the best Gold IRA companies that you might like:
- The Oxford Gold Group
This company has been in service since 2017. They also achieved an A+ grading from the Better Business Bureau and a Trustpilot 4.9 out of 5 stars within these years.
They specialize in precious metals like silver, gold, platinum, palladium IRAs, and home deliveries.
- Patriot Gold Group
For those that prefer plenty of experience, Patriot Gold Group has been around for five decades. They hold an excellent rating of A+ with the Better Business Bureau and even 4.6 out of 5 on Trustpilot.
- American Hartford Gold
This company has been in service for six years, and apart from IRA services, they also help customers stay up-to-date with the prices of precious metals.
One can find their price charts and market news on their official website. They also hold an A+ rating from the Better Business Bureau and Trustpilot reviews at 4.9 out of 5 stars.
Goldco also carries a BBB rating of A+ and Trustpilot scores at 4.8 out of 5 stars.
This company has been in service for fourteen years, and its main focus is on gold and silver IRAs.
Information on this website is gathered through public and private sources. While this website believes the information to be reliable informationally, no representation, warranty or undertaking, stated or implied, is given as to the accuracy of the information contained herein, and Investment Honey disclaims any liability for the accuracy and completeness of information contained in this website. Investment is done and participated in at personal risk and responsibility.
This website is distributed for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice.
The information, opinions and views contained herein have not been tailored to the investment objectives of any one individual and are current only as of the date hereof and may be subject to change at any time without prior notice.
Investment Honey does not have any obligation to provide revised opinions in the event of changed circumstances. Please note that all investment strategies and investments involve risk of loss. Nothing contained in this website should be construed as investment advice.
Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
Any ideas or strategies discussed herein should not be undertaken by any individual without prior consultation with a financial professional for the purpose of assessing whether the ideas or strategies that are discussed are suitable to you based on your own personal financial objectives, needs and risk tolerance. All individuals reviewing this information are highly advised to do their own research.
Investment Honey expressly disclaims any liability or loss incurred by any person who acts on the information, ideas or strategies discussed herein.
The information contained herein is not, and shall not constitute an offer to sell, a solicitation of an offer to buy or an offer to purchase any securities, cryptocurrencies, precious metals, stocks etc., nor should it be deemed to be an offer, or a solicitation of an offer, to purchase or sell any investment product or service.