Opting to Get a Gold IRA? Here’s How

If you are thinking about getting a gold IRA, then there are some things that you will want to know so that you can open your tax efficient investment account and hold Gold. Holding precious metal assets can be a good way to diversify your investments and make sure you are exposed to the commodity market.

You may have looked into gold and individual retirement accounts before, only to realize that you can not just hold precious metals in a normal IRA. 

If you are one of the many people that are wondering how you can hold gold in your IRA, then you will want to make sure you read these simple steps below. 

Step 1: Learn About Self Directed IRA

The first thing that you are going to need to do in order to put gold into your IRA is to do some research online about why investing in gold for retirement is a good idea. Once you have done that, you will learn that a Gold Individual Retirement Account will need to be self directed in order to allow you to safely invest in your future and take control of your investments.

This is a type of self directed account that allows you to pick and choose what investments you are going to hold. If you do not have a self directed IRA, you are not going to be able to put gold into your IRA so make sure you remember that first. Once you have opened your self directed IRA, you will be able to choose for a wide variety of investments that you can hold within your account.

With this being said, it is important to mention that there may be some limitations on what you can and cannot hold within a self directed account. That is why it is always important to consult with an investment professional that is knowledgeable about the tax laws regarding IRAs. Once you have found a broker, you will be one step closer to storing gold within your IRA. 

Step 2: Find a Custodian 

After you have opened your self directed IRA, the next thing you will need to do is find someone to purchase and hold your gold for you. In order to do this, you will need to search for a custodian that will help you store your gold in a vault and they will watch over it for you. 

One thing that you will want to consider when you are thinking about storing gold in your IRA is that there will be some costs associated with the custodians watching over your gold. Generally, you will not have any issue finding a custodian to hold your gold for you, but the only thing you need to watch out for is the fees that they charge you.

When looking for a custodian, you should remember that as a general rule, you will not want to be paying more than 2-4% of the value of your gold in fees every year. This is because if the fees are too high you will start to lose out on gains and the value of your investment may start to decrease. With that being said, you should be able to find a reputable custodian that will be able to store your gold for a reasonable cost. 

Step 3: Optional Gold Rollover 

If you already have savings in a 401K, then you may be able to roll over those assets into an IRA. You may be allowed to rollover precious metal assets, including gold into your self directed IRA if you decide to do this option.

It is important to know that you will need to take money out of your retirement account in order to purchase these precious metals from an IRS approved gold IRA company. This can be a good way to transfer some of the wealth you have already accumulated into precious gold. 

There are many reasons why a lot of people may want to invest in gold for their retirement. Holding gold until you retire may be a good investment strategy if you and your financial professional agree that it is an appropriate investment to make based on your financial situation.

The great thing about gold is that it can hold its values during times of high inflation or recession. Whenever you need help in protecting your retirement, consider speaking to your wealth planner about how a self directed gold individual retirement account can help you achieve your retirement goals.