Gold IRA investing is definitely a good idea in this tough economic climate. Inflation is going through the roof. Expenses are at an all-time high. And the stock market is in the middle of a massive downturn. All financial sentiment looks very grim at this point in time.
Guess what? Gold IRA investing is one of the best opportunities in an unstable market. This investment vehicle tends to gain value when other opportunities are losing value, like stocks, bonds, and mutual funds. It’s also a massive hedge against inflation and it provides other advantages that include:
- Inflationary safe haven to protect your portfolio
- Gain full control over your investments
- Create a true diversified portfolio
- Experience massive tax benefits
- Increase wealth protection against a struggling US dollar
Learning to invest in a gold IRA for beginners is certainly an important step on your wealth creation journey. It’s necessary to understand the true benefits of portfolio diversity to create a safe and stable retirement in the future.
Care to learn the most important steps about gold IRA investing for beginners? Keep reading to find out more.
Step #1: Finding the Perfect Gold IRA Company to Meet Your Needs
The first step is the most critical during the gold IRA creation process. You have to connect with a gold IRA company with a great reputation. Otherwise, you may end up choosing a gold company that doesn’t have your needs and best interest at heart.
You need to find a company with credibility, great online reviews, and more. They need to excel in a number of other areas. In fact, I created a top 10 list that I based off of my 7 critical factors. My current top 10 include:
- Birch Gold
- Regal Assets
- Augusta Precious Metals
- Cornerstone Bullion
- Advantage Gold
- Monex Precious Metals
- California Numismatic Investments
Wondering how I choose these companies? I based my choices on 7 critical factors. They include:
- Online peer-reviewed ratings
- Types of precious metals
- Precious metals buyback program
- IRA fees
- Service & delivery time
- Customer support & salesmanship
Step #2: Opening Your Gold IRA Account
Now that you’ve chosen the best gold company to work with, it’s time to open a gold IRA account. Contact your gold broker to get started. They may have a form to fill out on their website. Or you may have to call them to obtain documentation that you’ll have to fill out to open the account.
Believe it or not, some gold brokers also act as IRA custodians. Other gold brokers have connections with the top IRA custodians in the country. Either way, you’ll connect with a gold IRA custodian that will help you throughout the entire account creation process.
The main thing is to follow the instructions that your gold broker or custodian provides. Do everything they ask and the quicker you get it done, the faster you’ll begin investing in precious metals. This is the best way to secure your retirement future.
Read about my top 10 gold IRA companies by clicking here.
Step #3: Funding Your New Gold IRA Account
At this stage of the game, it’s important to begin funding your gold IRA investing account. Why? Without the proper funds, you will not be able to invest in precious metals for the long term. Think about your options and choose the best one to meet your needs. You’ll have three choices to consider that include:
- Funds transfer
- Precious Metals IRA rollover
- Depositing personal funds
Make sure to pick the right funding choice perfectly suited to meet your needs. I would like to break down these options even further. Below is a more detailed explanation of each process.
Depositing Personal Funds
This should seem like the easiest way to fund the account. It’s definitely the most self-explanatory method. Let your new IRA custodian know that you’d like to find the account using your personal funds outside of a retirement account.
In some cases, your IRA custodian will let you deposit these funds via ACH transfer. In other instances, he or she may decide to use a E-check. No matter what, just check with the custodian to find out their preferred method and fund the account using this option.
And if you have more than one option, choose the best method that will make life the easiest on you.
Precious Metals IRA Rollover
Believe it or not, many people often confuse an IRA rollover with the transfer but there is definitely a difference. In the rollover process, your current retirement account custodian will send you a personal check with your funds. This check must be deposited into your new precious metals IRA account oriole suffer the consequences.
What consequences? You are given 60 days to deposit these funds into your new gold IRA investing account after receiving them. If you fail to follow the 60-day rule, you will have to pay taxes and you’ll pay a penalty as well. This is an early withdrawal penalty to the tune of 10%, which is a seriously big chunk of money.
Why does this happen? If you fail to deposit the funds in the allotted time, it’s like you took a distribution from your account. But if you happen to be under the age of 59 ½ years old, it’s an early unsanctioned distribution. That’s why you have to pay the additional penalty on top of paying your taxes because it’s against the rules.
Do yourself a favor and deposit the check immediately so this doesn’t become an issue. Or better yet, consider a funds transfer because it’s a much safer option.
Still having trouble choosing a gold IRA company? Read my top 10 review by clicking here to find out more.
Transferring funds directly from one retirement account to another is one of the easiest things in the world to accomplish. Talk to your account manager or current IRA custodian and let them know that you’d like to transfer funds to a new account.
Guess what? This takes all of the pressure off of you and puts it on your account manager or custodian. They are responsible for making sure your funds reach the hands of your new custodian. You are not going to get involved whatsoever, unlike the gold IRA rollover.
Just tell this individual the amount and they will transfer into your new custodian to fund your precious metals IRA account. This is all you have to do to get the funds in place. It’s really easy and it’s personally my favorite method to fund a precious metals IRA account such as this one.
Step #4: Buying IRA Approved Precious Metals for Your New Account
Now is the time to finally begin purchasing precious metals. Your account is funded, all the paperwork was completed successfully, and you are ready to roll. Let your gold IRA company know that you like to start buying precious metals for this account. Your options include gold, silver, platinum, and palladium.
There is an important thing to know about buying precious metals for a gold IRA account. In fact, it’s absolutely critical to get this step right. Because if you get it wrong, you aren’t going to purchase IRA approved investments.
The most important thing to know is that the IRS has created certain purity levels that each investment vehicle must meet. The precious metals purity levels include:
- Gold – 99.5% pure
- Silver – 99.9% pure
- Platinum – 99.95% pure
- Palladium – 99.95% pure
If your investments do not meet these purity levels, they will not qualify as precious metals IRA investments. This is important to note because you do not want to accidentally purchase the wrong types of investments for your new account.
Some of the more popular examples of IRA approved precious metals include:
- American Eagle Gold Coins
- American Eagle Silver Coins
- Australian Koala Gold Coins
- Australian Koala Silver Coins
- Mexican Libertad Gold Coins
- Mexican Libertad Silver Coins
- Palladium Bars by Credit Suisse
- Canadian Maple Leaf Gold Coins
- Canadian Maple Leaf Silver Coins
- 10 Ounce Credit Suisse Platinum Bars
- Canadian Maple Leaf Platinum Coins
Obviously, there are numerous choices that go beyond the scope of a precious metals IRA. That’s why it’s critically important to choose the best investments that have received IRA eligibility. Connect with one of the top 10 gold brokers online and they will help you choose investments with IRA approval. Click here to read all about them.
As a new investor, it likely seems scary and difficult to get started with gold IRA investing. But nothing could be further from the truth. And if you follow the steps laid out in this guide, you’ll have no trouble beginning your journey.
The biggest step is the first step. Make sure you choose a reputable gold IRA company with an excellent reputation. Discover the 10 best companies in the business by clicking here to read my up-to-date review.