How to Invest in a Gold IRA to Maximize Your Retirement Savings Plan
A gold IRA functions identically to that of a conventional cash based IRA. The key difference is in the object of investment. Rather than investing in paper based assets such as bonds, stocks and cash, a gold IRA possesses its capital in the form of precious metals. Though it is typically referred to as a gold IRA, the actual investment may consist of any combination of bullion, gold, silver, platinum and palladium, as well as certain approved rare coins such as American Eagle coins or Canadian Maple Leaf coins. A brokerage which specializes in precious metal investment will be able to provide advice specific on how to buy gold in an IRA account to help you reach your financial retirement goals.
Why Invest in a Gold Backed Retirement Account
Investing in a gold backed retirement account is an increasingly popular method of diversifying a retirement portfolio. When stock and bond values decline, hard asset commodities such as precious metals climb in value. This gives your account an increased level of protection. Even in the most dramatic financial events, such as the fall of the market in 2008, gold has maintained a high level of marketability. The value of precious metals are also far less likely to be negatively impacted by market fluctuations such as inflation.
Maintaining a solid investment in traditional cash based models as well as deciding to buy gold with an IRA can grant a level of security to your investment against market volatility.
The Benefits of Working With A Quality Brokerage Firm
One of the biggest advantages to precious metal investment is the incredible liquidity of your new assets. The process of transferring gold and other metals back into currency is well supported by major government resources all over the world. However, incorporating these metals into your retirement account does present unique legal challenges. The precious metals must be held by an IRA trustee and stored in an IRS approved depository and requires a lengthy ongoing paperwork trail.
Historically, this and other regulations have made gold investment an overly complicated process. Many investors missed out on high return generating financial opportunities simply because they did not have the resources to learn how to buy gold with an IRA. The past few decades have seen a rise in brokerage firms who specialize in solely in gold IRAs such as Regal Assets, overseeing and managing the entire process. This has significantly streamlined the process for investors. While previously it may have taken months of paperwork and back and forth coordination to maximize the benefits of gold investment, now the entire process can be completed in an average of two weeks with the added benefit of highly experienced account managers who head every step of the process.
This, as well as the five fold decade long steady increase in the dollar price of gold, has made the gold IRA a highly popular investment choice.
How to Buy an IRA
The first step in transitioning your account into a gold IRA is to contact an IRA custodian who is licenced to work with precious metals. It is important to invest in a well established company with a proven track record for success, such as Regal Assets.
Research online reviews to get a full picture of what past customers have experienced, and check the Better Business Bureau business rating. A high quality company should have both readily available.
You should be able to easily reach a company representative over the phone. When you call for an initial consultation, be wary of any company who push too hard for a commitment right away. The focus of any business representative should be on asking you and and answering you questions to determine if a gold backed retirement account is the best fit for your budget and your financial needs, and making sure you have a full understanding of how to buy gold in an IRA account.
Once you decide on a broker, you will need to make sure your retirement plan can legally be transferred into a gold backed IRA. Both Traditional and Roth IRAs can be transferred without penalties or fines, however employer sponsored plans such as 401(K)s may have additional restrictions. This does not necessarily mean that precious metal investment is off the table, though it may require a few additional steps, depending on the details of your plan. A brokerage account manager will be able to help you understand the pros and cons of a gold IRA plan relative to your current retirement savings method.
Next, you will need to determine whether you would like to transfer or rollover your current retirement plan when you buy gold with your IRA. A rollover incorporates you into the process as a third party. Your current custodian will release the funds to you, and you will then pass them on to your broker. If you choose to rollover your assets, make sure you do so within a 60 day window. If the funds have not been fully transitioned within this timeframe, you will likely have to pay taxes and fees on the balance. It is important to be mindful of the fact that you are limited by the federal government to one balance rollover a year. A transfer is the simplest procedure of the two, and involves a direct transfer of funds your current account custodian to your broker, who will then buy gold with your IRA.. There is no yearly cap on the amount of transfers you may complete. A company representative can help you decide the pros and cons of each method for your particular situation.
Well established brokerage firms such as Regal Assets, who have 16 offices located throughout the world and have been in business for over 50 years are extensively connected to the gold and bullion market. As big players, they will have access to the most profit producing precious metal sources and storage options available. Contact Regal Assets directly to learn more about how to buy gold in an IRA account.