There are three ways that you can invest in a precious metals IRA:
So, without further ado, we’ll take a closer look at each type of investment
You can directly purchase a precious metals IRA and it will usually be for a minimum amount that is significantly lower than for retirement plan conversion options (rollovers and transfers). For example, with Regal Assets, the minimum investment requirement for directly purchases are $5,000 whereas the minimum for a rollover is $10,000.
A gold IRA rollover is the right choice for investors who already save for retirement but aren’t allowed to own physical assets under their current plan. This person might have a traditional IRA without precious metals purchasing permission as they would in a self-directed precious metals IRA. Or they might have an existing 401(k) through their current or former place of employment. It is very simple to rollover any traditional or Roth IRA to a precious metals IRA. A 401(k) is more complicated and it depends on whether or not you have one with your previous or current employer. If you have a 401(k) with your current employer, you may have challenges rolling it over to a precious metals IRA. On the other hand, if you have a 401(k) with a previous employer, it is very easy to rollover your retirement plan to a gold IRA. Traditional IRAs are only allowed to hold stocks, bonds, and cash. As you can see, it’s missing the gold investment component. So a gold IRA rollover is in order if you intend to secure your retirement future investing in precious metals.
According to the IRS, they stipulate that investors can complete a rollover three different ways. They include the following:
Do you currently have a different retirement account but plan to invest in precious metals? If so, you’ll need to transfer the funds from your current financial institution to your new gold IRA custodian. As an example, let’s say you intend to convert your existing traditional IRA to a gold IRA. You can initiate a tax free transfer from one institution to another without any problems. Just make sure an impending distribution isn’t in progress. This is only one example of the types of gold IRA transfers currently possible. You can also transfer funds from your existing Roth IRA to a gold IRA: With transfers, you can make them directly from one account to another. Or you can liquidate your current funds and deposit the proceeds into your new account.
There’s a wrong way and a right way to buy physical gold. We want to teach you the right way so you never get burned. Your two main options include:
The option of buying in person is difficult. You never know who you can trust. You’ll wonder whether or not you’re actually buying gold or a cheap facsimile. Sure, you can walk into a neighborhood coin shop and make a purchase. Nobody will stop you. But if you don’t know what you’re doing, it’s easy to get ripped off in this situation. Plus, brick and mortar shops keep regular hours so it’s not too convenient either. Buying gold online is a totally different ballgame. It’s easy to learn which companies are trustworthy and which have bad reputations. You’ll have more options available when compared to a local coin dealer. And websites stay open 24/7. So you can buy precious metals early in the morning, late at night, or anywhere in between. Our recommendation: buy physical gold online. It’s safe, secure, and incredibly convenient.
A gold IRA is similar to a traditional or Roth IRA with one major difference: it holds physical precious metals. So, if you plan to buy gold bullion coins and bars and accrue value toward your retirement, this is the way to do it. A gold IRA is also known as a precious metals IRA or a metals IRA. With a self-directed precious metals IRA, you the investor, are the only in control of the asset allocation. This means that you’re not only limited to investing in traditional assets such as stocks, bonds, mutual funds and treasury notes. In a self-directed precious metals IRA, you can hold all types of assets: cryptocurrency, oil and gas, commercial real estate, land and other assets that you would not be able to hold in any other traditional retirement plan. Some investors prefer other vehicles to gain precious metals exposure. We’ll tell you how three different styles of investing stack up against the gold IRA.
Buying an ETF is like placing a bet. Sure, buying GLD will give you exposure to gold in your portfolio, but it’s not a solid long term investment. It goes up when the value of gold goes up. And it goes down when the value of gold goes down. But it does so at triple the speed. So you can gain or lose money very quickly. This option is more for day traders not retirement investors.
An ETN is similar to an ETF but there’s one big difference. The ETF is actually backed by physical gold, although it’s hard to convert your shares to the real thing as an investor. An ETN is just an exchange traded note. It isn’t actually backed by physical gold. In our opinion, this is an even worse investment and bigger gamble than the ETF.
Investing in individual stocks is always tricky. That’s why only a tiny percentage of the population will ever get rich buying them. You have to know what you’re doing to make money. A gold IRA is simple. You buy gold at a certain price per ounce and you know it will rise in value over time. How do you know? You know because of history and past performance, that’s how.
You have questions and we have answers. Hence the Q&A.
Anybody who wants one can open an account. There are no restrictions.
You aren’t limited to precious metals in this account. You can also buy stocks, bonds, futures contracts, physical assets, and more. Speak to your IRA custodian for a full list.
If you intend to buy gold, you should do it in a precious metals IRA account. You can convert or transfer your existing retirement account and roll it over into an IRA. Or you can start a new account and fund it from scratch. Just make the most of the tax advantages of this investment vehicle and you’ll be alright.
Each individual IRA custodian will have their own specifications. Ask yours for a list of requirements.
Investing isn’t supposed to be easy. If it were everyone would do it. But it’s necessary if you plan to live financially secure and free when you retire. So it’s up to you, and you alone, to protect yourself. As you can see, investing in physical gold is the right choice. With so much economic turmoil and strife, it’s hard to feel comfortable keeping all of your eggs in one basket. You need to expand your horizons and diversify your portfolio. Investing in a precious metals IRA is the perfect way to do so. So get started right away and don’t delay, view our List of Top 10 Gold IRA Companies today.