However, some companies do not set such requirements for the purchase of gold and other precious metals. Even with a long time horizon, gold investors have no guarantee that they’ll make money from their investment, especially if you’re planning to rely on a gold IRA company’s repurchase program to sell your gold if you need to accept distributions from that IRA. Buyback programs usually give you the wholesale price for gold, which can be 30% below the retail price. That means the price of gold would have to rise by at least 30% from the time you bought it, plus the fees you pay to maintain the account before you could start making a profit.
You don’t want to fund a gold IRA with cash because you’ve already paid taxes on that money, and the point of using an IRA as an investment tool is to take advantage of the tax advantage that comes with using pre-tax dollars. A gold IRA rollover is the process of transferring assets from an existing traditional IRA or employer-sponsored retirement plan to a new or existing gold IRA. You’ll need a broker to buy the gold and a custodian to create and manage the account to get started. American Hartford Gold has lower shipping costs than most gold IRA companies, making it an excellent option for investors who want to keep their costs low.
Annual fees are generally charged by the account custodian, and storage and insurance fees are more often owed to the custody account than to the Gold IRA company. With this type of IRA, you can manage the account and invest in a wider range of products than other IRAs. Many Gold IRA companies have preferred custodian banks that they either recommend or require their customers to use, or you can search for a custodian on the RITA website. An important caveat with both IRA rollovers and transfers is to consider how much you want to deposit into your new account.
Diversifying your retirement portfolio with gold can be smart, even if you don’t think the economy is going into a tailspin. American Hartford Gold also offers a unique service that allows you to consolidate your metals into a smaller, easy-to-use size. These schedules too may vary depending on the IRA company. So ask the company you’re considering for estimates that relate to their accounts and processes. For more information on what to look for when choosing a Gold IRA company, check out Money’s Guide to the Best Gold IRA Companies.
Most gold dealers who offer this service charge 5% commissions on top of the standard 3% commission on physical gold bars. Self-directed IRAs can be either traditional IRAs or Roth IRAs, and the difference is how you want to tax your money. Oxford Gold Group, for example, offers direct sales of metals, and you can work with your dedicated account manager to purchase the approved metals of your choice. As with traditional IRA accounts, withdrawals are subject to income tax when you receive your distributions in retirement.
