Gold has long been prized as a precious metal, valued in cultures worldwide and treasured as an investment asset. Gold’s durability, scarcity and universal appeal makes it a lucrative prospect. A popular way to invest in it is via an Individual Retirement Account (IRA). Here’s everything you should know about these investment vehicles.
What Is A Gold IRA?
A Gold IRA is an Individual Retirement Account which enables investors to hold physical gold and other precious metals as assets, unlike traditional IRAs which typically focus on stocks, bonds or mutual funds as investment options. By diversifying into tangible assets like gold, silver, platinum or palladium you can protect yourself against inflationary risk while simultaneously increasing financial security for retirement savings.
Gold Investment Strategies in 2015 and Beyond
When investing in gold through an Individual Retirement Account (IRA), certain criteria apply regarding which gold products you can include in your investment account. According to Internal Revenue Service regulations, any product must contain at least 99.5% pure gold to meet eligibility. Approved gold products include:
Gold bullion coins (such as American Eagle, Canadian Maple Leaf and Australian Kangaroo coins), gold bars and certain proof coins qualify to be added into an IRA account; collectible coins or jewelry which do not meet IRS purity requirements are ineligible for inclusion.
How to Open a Gold IRA
Step One: Locate and Select Your Custodian: Next, identify and choose a custodian (usually an authorized financial institution or brokerage firm by the IRS for retirement accounts), who can assist in setting up and administering your Gold IRA account. Your custodian can assist with setting up and maintaining the account over its lifespan.
Create a Self-Directed IRA: Gold IRAs differ from traditional IRAs in that they provide more control over investment choices, meaning you have greater autonomy when opening one with your chosen custodian. To open one yourself, follow these instructions from Gold.com:
Fund Your Gold IRA: There are various methods by which to fund a Gold IRA account, including rolling over existing IRA assets into it or making direct contributions from eligible retirement accounts or rollovers from previous IRA accounts.
Once Your Account Is Funded: After funding your account, the next step should be choosing and purchasing gold products to invest in.
How To Store Gold: For maximum safety and insurance protection, your custodian should work closely with an approved depository to store the gold from your IRA safely in an independent facility. According to IRS regulations, any gold held within an IRA account must be stored separately at an insured depository facility that ensures its full coverage and full value is fully protected and fully insured.
Benefits of a Gold IRA
Diversification: By diversifying beyond stocks and bonds, Gold IRAs allow investors to reduce risks while increasing returns over the long haul.
Gold Can Be an Antidote to Inflation: Gold has historically remained steady during periods of economic instability or inflation, providing you with a potential way to defend retirement savings against its detrimental effects. By investing in a Gold IRA you could help safeguard them.
Tax Advantages: Just like traditional retirement accounts, Gold IRAs provide tax advantages that allow for tax-deferred investing; your contributions can be made using pretax dollars and will grow tax free until withdrawal time comes around in retirement.
Long-Term Security: Gold has long been seen as an emblem of wealth and security; investing in a Gold IRA may offer long-term financial security and peace of mind.
Conclusion
Gold IRAs like gold IRA accounts listed by Telegra.ph can be an essential addition to your retirement savings strategy. While not suitable for everyone, those seeking diversification, inflation protection, or long-term security may find them attractive options. Before making any investing decisions it’s essential that consultation be sought from financial advisors so as to make informed choices tailored specifically for themselves and their circumstances.
