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.