Are you finally beginning to prepare for your retirement? There are so many options to consider and choose from as you work toward securing a wealthy future.
Many investors recognize the value of alternative investments. You are undoubtedly one of them since you’re seeking information about a gold IRA.
You likely wonder, “How do gold IRA plans work?”
Well, today you’re finally going to get your answer. I’m going to share specific details about the ins and outs of gold IRA plans.
Are you ready to discover the truth about this valuable retirement investment opportunity? Keep reading to find out more information on this pressing topic.
How to Set Up a Gold IRA Plan in 3 Easy Steps
There are a few critically important steps one needs to take to successfully open and fund a gold IRA account. These steps aren’t too overbearing or difficult. But they are required nonetheless. Otherwise, you might end up putting faith and trust in a company that doesn’t respect you or your hard-earned money.
Step #1: Find a Reputable Gold Company
Some popular precious metals related websites believe that finding a trustworthy gold IRA custodian and company is the last step. Personally, I know that this is backwards thinking. You must find a reputable gold company first. Once you’ve accomplished this task, all of the other steps will fall into place very easily.
Thankfully, I’ve done much of the heavy lifting for you. I created a top 10 list of the most reputable gold companies in the industry. Take a few moments to read my detailed review by clicking here.
Or stick around a little while longer to learn more about this important topic.
Performing careful research is the cornerstone of discovering a reputable gold company. Without it, you might end up choosing a profit hungry scammer. Avoid companies looking to grab as much of your wealth as they possibly can.
Some things to consider during the research phase include:
- How do they stack up on online peer-reviewed websites? Agencies like the Better Business Bureau, Trustlink, and the Business Consumer Alliance provide valuable information about gold IRA companies. They share customer complaints, rate each company, and provide an overview of each business.
- Is there a buyback program in place? You may need to sell some of your precious metals quickly to get cash fast. A buyback program is the fastest way to get paid. Most reputable gold IRA companies pay within 24-48 hours of receiving the precious metals from your vault.
- What type of stockpiling does the company provide? Commingled stockpiling is one option but it isn’t the best. Your precious metals are stored in a vault with other customers. Segregated stockpiling is much better because your investments are stored in a dedicated vault that’s all your own. Does your gold IRA company provide both options?
- Do they charge heavy IRA fees? Many gold IRA companies make it easy to open an account, but charge heavy fees year after year. Find a reputable gold IRA company that charges minimal fees for: segregated stockpiling, administration fees, wire transfer fees, set up fees, and more.
- How is their customer service? Do they have a dedicated sales team ready to answer your questions and concerns? Is their customer support staff friendly, outgoing, and ready to help? Or, is the company filled with pushy salespersons continually attempting to get you to buy things that you don’t need?
- Do they have plenty of positive reviews online? Or is the Internet filled with a plethora of negative reviews about the gold IRA company?
Step #2: Open Your Gold IRA Account
Now that you’ve chosen a reputable gold IRA company, it’s time to open your account. This is now easy to accomplish under your gold company’s expert tutelage and guidance.
At this stage, you’ll need to initiate a gold IRA rollover.
What is a gold IRA rollover?
For starters, you’ll take your existing retirement account and you will convert it into a gold IRA account. You can accomplish this task using two possible strategies.
First, you have the option to convert your entire retirement account into a gold IRA account. Most complete retirement account rollovers happen when you leave your previous employer and no longer contribute to the account.
Second, you have the opportunity to initiate a partial retirement account rollover. In this case, you’ll only rollover part of the account to use to fund your new gold IRA.
Either method is perfectly acceptable. Make your choice to best fulfill your personal wants and needs for your retirement future.
What happens during a gold IRA rollover?
During a rollover, your current retirement account custodian is required to initiate a rollover or transfer to your new gold IRA account.
A rollover is different from a transfer, which I’ll explain. When the custodian begins a rollover, he or she will take a certain amount of money out of your retirement account. They will then pay you the money directly. It’s your job to then send the funds to your new IRA custodian.
If you fail to deliver the funds to your new custodian within 60 days, you will pay penalties and fees. The penalty amounts to 10% of the funds taken out of your existing retirement account. On top of paying early withdrawal penalties, you must pay taxes on this money because it’s now considered income.
During a transfer, your IRA custodian will transfer funds directly to the new custodian of your gold IRA account. This transfer doesn’t require intervention on your behalf. The money goes directly from one custodian to the other.
Choosing a direct or indirect rollover
If you choose a rollover, your best bet is to perform a direct rollover in lieu of an indirect rollover. There are withholding requirements involved with indirect rollovers. Normally, this isn’t a big deal except you might face early distribution penalties if you aren’t careful.
Do yourself a favor and choose a direct rollover no matter what. It’s the smartest and safest way to initiate the rollover process without penalties and fees becoming a problem.
Find out more about the top 10 gold IRA companies by clicking here to read my detailed review.
Step #3: Choose Acceptable Gold IRA Investments
Now that you’ve opened and successfully funded your account, it’s time to choose the perfect investments. This might seem daunting on the surface, but believe it or not it’s actually a lot easier than it appears.
How so? The IRS is extremely strict about the types of investments allowed within a gold IRA account. They have specific purity requirements that must be met. Otherwise, if an investment doesn’t meet certain purity levels, it will not qualify for a gold IRA account.
The purity requirements are as follows for the 4 main precious metals:
- The purity level requirement for gold is 99.5%
- The purity level requirement for silver is 99.9%
- The purity level requirement for platinum is 99.95%
- The purity level requirement for palladium is 99.95%
The IRS is incredibly strict about their purity level requirements. If you buy precious metals that do not meet these purity levels, they will not qualify as investments within your IRA account.
To make sure this never becomes a potential problem, you should consider focusing on investing in the following gold coin options:
- Gold Austrian Philharmonic coins
- Gold American Eagle coins
- Gold Canadian Maple Leaf coins
- Gold Australian Kangaroo coins
- Gold American Buffalo coins
And if you intend to invest in silver, some excellent silver coins to add to your portfolio include:
- Silver Austrian Philharmonic coins
- Silver American Eagle coins
- Silver Canadian Maple Leaf coins
- Silver United Kingdom Britannia coins
- Silver Mexican Libertad coins
For future retirees interested in platinum, consider investing in the following options:
- Platinum Austrian Vienna Philharmonic coins
- Platinum American Eagle coins
- Platinum Canadian Maple Leaf coins
- Platinum Australian Koala coins
- Platinum Isle of Man Noble coins
And finally, the best palladium coins to add to your gold IRA portfolio include the following options:
- Palladium Canadian Maple Leaf coins
- Palladium Russian Ballerina coins
Unfortunately, most palladium coins do not meet the strict requirements for gold IRA approval from the IRS. That’s why I only shared the names of two specific coins with you today.
To find out more about gold IRA investing, I implore you to read my top 10 review of the best gold IRA companies in the industry. You can read my review here by clicking the following link.
Bottom Line
I hope you took the time to read the entirety of this article from the beginning. I share valuable information about how do gold IRA plans work.
If you follow these instructions, you’ll have no trouble opening, funding, and investing in precious metals for your retirement future. This is a great idea because it provides portfolio diversity, as well as access to highly lucrative investment opportunities.
Begin your journey by finding the best gold IRA company to work with. I recommend reading my top 10 review of the best companies in the industry. This valuable information will help you put your best foot forward as you begin your gold IRA retirement journey.
