Converting Your IRA to Physical Gold: What You Need to Know

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Whether you have a traditional or Roth Individual Retirement Account, an IRA can help you create a more comfortable future once you stop working. Depending on what goes into this fund over the course of your employment, (with most caps set at $5,500 per year,) you can save as much as over $100,000 or more for your retirement. However, there are a number of factors that can have an impact on your retirement fund, and the most common is inflation. Inflation drives the cost of living up each year, reducing the value of the money in your IRA. One way to protect your money is to create a physical gold IRA by rolling over your cash into this precious metal. However, before you make the choice to do so, understanding the potential benefits and processes of a physical gold IRA rollover can help you feel more confident about participating in this investment opportunity.

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The Effects of Inflation on Paper Investments

Investors are rolling their IRAs over into physical gold more often because of rising inflation. If you are like most individuals, you may not be aware that stocks, cash and bonds can lose their value due to inflation, and sometimes drastically. In fact, any assets that are paper based can lose their value, and if this happens to your IRA cash, you may not be able to afford to retire at the time you calculated or be able to do all the things you planned, such as traveling or buying a new home.

Creating a physical gold IRA may protect you against rising inflation. According to Regal Assets, the value of gold IRAs has risen steadily since 2004 and is typically not affected by inflation. As a result, rolling over your IRA into gold can provide your retirement savings with more stability and allow you to plan for the future with more confidence.

The Benefits of Rolling an IRA Into Gold

If you are considering rolling over your IRA into physical gold, there are several benefits that you may want to be aware of. While creating such an IRA is not the right choice for everyone, some of the benefits for many investors include:

  • Conversion of the IRA is typically tax free
  • Rollover takes less than 30 days in most cases
  • Fees for setup of most accounts are affordable

You should keep in mind that rollover rules vary depending on which IRA gold company you choose, but many gold specialists, such as Regal Assets, can help get you started and explain how to create your new physical gold IRA with the least amount of worry or effort.

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The Advantages of Buying Gold

If you are concerned about the value of your purchased gold dropping, you should know that there are several advantages to gold that typically make its value more stable than cash or other paper-based assets. One of the greatest advantages is that unlike printed money or stocks, gold cannot be created by banks or the government, so its intrinsic value tends to remain stable and is on the rise for 2016. The rise in value may be because gold is not only valuable in coin or bar form but because it is used in computers, cell phones and other electronic devices. Many companies are purchasing used equipment like this from consumers in order to harvest the gold from them, and with technology advancing in great leaps and bounds, its value will most likely increase in the future as well.

How to Create a Physical Gold IRA

Once you decide to convert an IRA to physical gold, there are several steps you should take to ensure everything goes smoothly during the conversion. Firstly, you should note information about your existing IRA and take down details such as how much money you have saved and whether you are planning to make a deposit in the near future. Next, decide what type of gold you would like to invest in. There are several different types you can purchase, including:

  • Gold bullion
  • Gold bars
  • Gold coins

As you choose a form of gold to invest in, it is important to keep in mind that any you choose must meet the requirements of the IRS. If you are unsure about which purchases you will need to report, gold specialty companies, such as Regal Assets, can help you navigate the world of buying physical gold.

Once you have these details settled, you can create your physical gold IRA in order to protect your retirement assets. However, there are a few fees and limitations you should be aware of. While setup fees vary by company, you can expect to pay anywhere from $200-$300 per IRA. In most cases, the fees you pay depend on the size of your existing IRA. Other possible fees include storage, custodial and seller’s costs, some of which must be paid monthly. Some companies also require that you roll over a specific amount, so it is wise to look over the details of a specific rollover carefully so you can approach the process with confidence and reassurance.

Maintaining Your Gold IRA

Once a physical gold IRA is created, you can start adding gold purchases. An investment specialist can help you decide which purchases would best benefit your future. Remember that you will not be in possession of the gold you buy. Instead, it will be held at a bank or other federally insured facility. If you want to withdraw any of the gold before the maturity date of your IRA, there will most likely be a penalty for doing so. However, one of the advantages of this type of account is that you can typically start making withdrawals between the ages of 59-64, depending on which company carries your account, allowing you to retire before age 65 if you choose to.

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There are many advantages to a physical gold IRA and since gold prices are projected to rise throughout 2016, now may be the time to transfer your retirement savings. While the decision to create a gold IRA may seem daunting, there are many resources available that can help you learn about the many details it entails. If you would like to know more about gold IRAs and how to set up and maintain such an account, contact Regal Assets to speak with an experienced investment specialist today.

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