Investing in precious metals is serious business that needs to be treated as such. You wouldn’t buy the first car that you look at in the car dealership. So, you shouldn’t immediately go into business with the first precious metals IRA dealer to come along.
Are you on board with investing in a gold IRA? Or are you still on the fence about this important addition to your retirement portfolio? This style of investment presents big opportunities for everyone looking to protect their portfolio as they head toward retirement.
The major advantages of this style of investing include:
- Safe haven portfolio protection from inflation
- Control over your investment choices
- A more diversified portfolio
- Tremendous tax breaks
- Protection against the failing US dollar
Clearly, setting up a gold IRA is the next important step to put you on the path toward a successful financial future in retirement. In an effort to make it easy to get started, I’ll share some important steps to take to begin the gold IRA setup process.
1. Choosing a Gold IRA Company (Research & Recommendations)
The first most important step of setting up a gold IRA is finding a reputable gold company to work with. The last thing you need is to pick a gold broker lacking trust, lacking a solid reputation, and lacking credibility. Unfortunately, there are hundreds of gold brokers to choose from. Yet I’d only recommend the top companies at best. And based on my research, I developed a top 10 list that you can read about right here.
Or if you prefer staying exactly where you are, my top recommendations include the following gold companies:
- Regal Assets
- Birch Gold
- Augusta Precious Metals
- Cornerstone Bullion
- Advantage Gold
- California Numismatic Metals
I chose these companies based on seven critical factors that I go into much greater detail about in my top 10 review. Ultimately, each of these gold companies have an excellent reputation, which almost goes without saying. They’ve received positive reviews and have the highest credentials with the BBB, BCA, and Trustlink. And they’ve received awards, recommendations, and accolades from the financial community and their peers.
Remember, setting up a gold IRA is of critical importance as a beginner. You have to get this first step right. Otherwise every other step could potentially be tainted by your poor choice. Read my top 10 review of the best gold companies doing business today for even more information.
2. Setting Up a Gold IRA with a Precious Metals Broker
At this stage of the game, the account creation process is the next inevitable step. To purchase precious metals through a self-directed IRA account, you’ll need the help of a reputable gold broker. They will connect you with a custodian who can begin the account creation process from scratch.
No matter which gold broker you choose, there’s likely an application form that you can fill out on their website to get started. If not, find their phone number and give them a call to discover how they handle the gold IRA creation process.
Ultimately, you need to do whatever it is that your gold broker tells you to do. And you need to ask an IRA specialist at your gold broker pertinent and important questions before you get started.
Things to Ask a Gold Company before Setting Up Your IRA Account Include:
- Should I roll over my 401(k) from my previous employer?
- Are there other ways to fund my account?
- Can I transfer funds from one retirement account into this one?
- How much do you charge in fees?
- Are you working with a reputable IRA custodian?
- Do you have a solid working relationship with reputable storage companies like Brinks or Delaware Depository?
- How much does the IRA custodian charge in yearly fees?
- How much does the precious metals depository charge in yearly fees?
- Do you waive any of the fees during the first 1-3 years?
- Are there any additional fees that I need to know about?
- Is your company considered a reputable precious metals broker?
- Does your company offer a gold buyback program?
Presumably, you’ll have answered many of these questions before you even reach the gold IRA setup process. But if you haven’t asked these questions so far, now is the time to get these answers. You do not want to end up with an expensive broker, storage facility, or custodian. And you really don’t want to discover how expensive they are after handing you an outrageous bill for their services.
If you’re uncertain about the right gold IRA company to choose, please read our top 10 list over again. And make your choice based on my best recommendations.
3. Choosing Your Options for Funding a Gold IRA Account
The next step is to pick your ideal funding option. It’s impossible to purchase precious metals for long-term IRA investing without the proper funds. So, It’s an Absolute Must that you consider all of your options. For the most part, there are three main choices to consider when funding your account.
Your options include the following:
- IRA Rollover
- IRA Transfer
- Personal Deposit
Depending on your specific financial situation, you’ll want to choose the perfect funding option to meet your investing needs. We’ll now take a look at these options in greater detail below.
Gold IRA Transfer
According to your retirement situation, it might be necessary to initiate an IRA transfer to get started. Do you have an existing retirement account already in use? If you do and plan to change custodians, you’ll need to begin the transfer process right away. This will allow you to transfer your existing IRA account from your current custodian to your new custodian.
Why would someone want to change IRA custodians? A couple of reasons immediately come to mind. Your current IRA account and custodian may not handle precious metals within an IRA. Another possible reason is that you aren’t satisfied with their services.
The reason really doesn’t matter. The important thing is that you contact your current custodian and tell them about the switch. Have them issue a distribution check to the new custodian that you’ve chosen.
Gold IRA Rollover
A gold IRA rollover is similar to a transfer with one key difference. During the rollover process, after you contact your custodian about the change, they’ll issue you a distribution check directly. Let’s say you have no interest in reinvesting in your current retirement account any longer. You intend to use this money to fund your gold IRA account by rolling it over as soon as possible.
You’ll immediately become subject to the 60-day gold IRA rollover rule after you receive the rollover funds into your possession. What is the 60-day rule? Ultimately, the IRS gives you 60 days to mail the distribution check to your new custodian. If you do not mail it within the 60-day timeframe, it’s considered a taxable distribution. If you’re doing this prior to retirement age, you’re also subject to penalties enforced by the IRS because of early withdrawal.
This funding method seems fairly self-explanatory and should be easy enough for you to figure out. Just contact your new IRA custodian and ask him or her where you should send the check or money order.
It’s possible that the custodian may let you pay using an E-check or an ACH transfer. You’ll need to work out the specifics with your IRA custodian. It’s best to call the custodian before initiating personal funding. And ask this individual about the best methods to make a personal deposit into your new gold IRA account.
4. Purchasing Precious Metals for Your Gold IRA
Now that your account is set up and funded, it’s time to start investing in precious metals. As an IRA investor focusing on retirement, you can purchase the following types of precious metals for your account. The four main types include:
Not every piece of gold, silver, platinum, or palladium is eligible for a precious metals IRA. The IRS only allows the purest precious metals as investments in this particular account. Some examples of eligible precious metals include:
- Gold American Eagle Coins
- Silver American Eagle Coins
- Gold Mexican Libertad Coins
- Silver Mexican Libertad Coins
- Gold Australian Koala Coins
- Silver Australian Koala Coins
- Gold Canadian Maple Leaf Coins
- Silver Canadian Maple Leaf Coins
- Platinum Isle of Man Noble Coins
- Credit Suisse Palladium Bars
- Various Bars and Rounds
There are a wide range of options available to add to your precious metals IRA investments. Consider choosing one of the top 10 gold brokers to secure your precious metals on your behalf. Read about our 10 favorite choices by clicking here.
It may seem difficult, but it’s quite simple to start the process of setting up a gold IRA for beginners. Basically, you should gear your main area of focus toward choosing the right gold IRA company to meet your personal needs. This is the most important step from the start. It could mean the difference between having a great experience or subpar entrance into the precious metals IRA investing world.
To discover the truth about the top 10 precious metals companies in business, click here to read my detailed review.
I have been asked to provide any discussion, opinion or questions on the subject.
At the outset let me say that I looked at the article with no experience in having invested in precious stones but willing to be persuaded on the subject. Knowing as well that I have successfully invested in other instruments and that my risk level is high medium.
I like the advantages that you articulated for investing in a IRA. One thing I did not see was what the average return on IRA was over any period. This trend data or information, once moving in the right direction, would certainly add to my inclination to consider pursuing a IRA.
One factor that I would be keenly interested in being made aware of is how easy could I liquidate a IRA?
Similarly referring to say the housing market collapse and how IRA’s performed during this period would support the advantages of portfolio diversification and protection against a falling US$.
I think it is good that you identify the top 10 gold companies. This particular part of the gold buying journey is made more comfortable by ensuring that these expertise are on board. One thing that I would be wary of however are what are the fees that would be applied? Or is there a standard commission range that is universally applied?
One other thing that might be worth mentioning are what are the downsides of investing in a IRA? I believe if you deal with these squarely it will further improve your authority and transparency on the subject.
Hope this helps.
Hello only1hugh! Thank you for your feedback. This article does not promote investing in an IRA but rather a gold IRA. An IRA will have a different ROI based on what the investment holds. A traditional IRA can hold investments like stocks and bonds but a gold IRA can also hold physical gold so the ROI on both IRA’s will be different. That’s why there’s no average return on an IRA because ALL IRA’s are different. Some hold stocks and bonds, some hold physical gold, so it does not matter if you make a calculated average of what ROI all the IRA’s have made for people because they are all different. It’s like comparing apples to oranges – it’s irrelevant. This article is about investing in a GOLD IRA not a regular traditional IRA. We are telling people who do hold traditional IRA’s to rollover to a gold IRA because gold has steadily risen in value over time and we predict that it will continue to do so in the future. Also, it’s better to invest in gold through an IRA rather than by storing it yourself so that you can leave it to the professionals and enjoy the tax breaks that it offers. That’s the whole point of the article.
You can liquidate your IRA at any time and have the funds returned to you. Just contact your IRA broker and he will do everything for you.
The downside of an IRA, particularly a gold IRA is that there is usually a minimum amount for investment. The minimum amount will be different based on the company.
Thank you again for your feedback!
Hi David, thank you for a frank and personal view of the way to invest in Gold. It was a pleasure to read and I like the fact that this is something you have extensively researched and that you have gone on to write other articles about this. I feel comfortable in the knowledge that what I am reading is genuine and good advice. I have investments in other areas, mainly stocks and shares, but I have always wondered about Gold. I can honestly say that with your advice and by reading the rest of your articles I shall finally get to go down that avenue.
Hello David! Thank you for the feedback and sharing your experience with your portfolio! I’m glad you’re considering adding gold to your portfolio, just make sure you can do it by rolling over your retirement plan to a gold IRA. You can also add stocks and other investments to it as well. Thank you again for coming by!
Honestly so far I have never had the opportunity to get to know GoldIRA in more detail. I would like to create my own account, I will think about it a bit more. Anyway, here is all the essential information for beginners, which is great! Best regards.
Hello lioness98! Thank you for the feedback and the compliments! I wish you the best of luck in setting up your own brand new gold IRA account!
Hi, although I’m not a U.S. citizen I still enjoyed reading your article. It’s really interesting to learn that there are creative ways in which people are able to invest for their retirement. With all of the money printing that has occurred in 2020 and the prospect of what that could lead to in the future, I’m sure that a lot more people will be considering precious metals and even crypto as places where they would like to place their retirement funds in the months and years ahead.
Hello Paul! Indeed, gold and crypto is where the experts are putting their money in because of the economic unrest and that’s what I advise all my readers to do as well. I wish you the best in your investments as well, Paul! Thank you again for the feedback!
Thanks for the great article David. In today’s economic climate a gold IRA could protect my life-savings. It is important for me to set up an IRA account. I think setting up a Gold IRA account will be easy if I get involved with the right company from the start. The experts there will guide me to take the right steps. It is also imperative for me that I take the time to do my own research and I am glad you reviewing the top 10 IRA companies. I will definitely go through those reviews and this way I will be sure that I make the right choice.
Hello Nektarios! Yes, if you want to get involved with a gold IRA company I would highly suggest that you choose from the top 10 gold IRA companies that I have listed on my website. They are the very best in the industry. Thank you again for your feedback and I wish you the best on your investment journey, Nektarios!