If you are thinking about investing in a new IRA or whether you are thinking about changing your IRA investment strategy now is a good time. It is always good to think about your retirement plans and how to make the most out of them. The investment world is always changing and you have options. While one plan may not be right for everyone gold is a good option for many people and you should know your options regarding investing in gold.
Some people tend to view gold as a relic of the past as gold bricks are no longer used for regular transactions but gold is still a valuable way to store large amounts of money. Other precious metals such as silver are also still popular. Those who have IRAs whether they are traditional or Roth have the option to roll over your investment into a gold IRA. You can even rollover some other retirement plans into a gold IRA including: 401K, 401A, 403B, and 457 plans.Even thrift savings plans and annuities can qualify for rollover. Some accounts are harder to rollover but it can be done.
Gold IRAs have to be invested in real gold, for that you have two main options: gold coins or gold bullion. There are a few more different types of gold but they are not as popular. Other IRAs are invested in stocks or mutual funds. Gold changes prices but it very rarely fluctuates dramatically. Quite often gold prices are on a small but steady rise so if you invest early the gold will be worth a decent amount more by the time it comes to sell it. Gold prices may go down but they have always come back up. Stocks don’t always come back up when they go down. For this reason people will choose gold over mutual funds or stocks, they don’t have to worry as much about their investments.
With any kind of physical investment you are going to want to shop around. Gold may have a set price but there are a number of markup fees that sellers and account managers can charge. The first fee that you will have to worry about is the seller fee. It may only be a one-time fee but the price can be costly depending on the seller and what kind of product you are purchasing.
Next because you are setting up a new kind of IRA you will almost always have to pay a fee to set up the gold IRA account. Just like with the seller fee this is only a one-time fee. Any IRA, including a gold IRA, is required to be in the custody of a financial institution and because of that banks will charge a fee in order to protect the IRA. The bank will also charge fees such as for transfers.
Every form of gold except for one require you to store your gold in a qualified facility. These facilities are often secured vaults. Because the storage facilities need to pay for their maintenance and staff members they charge storage fees to hold your gold. The one time that you do not need to have your gold stored in a qualified facility is when you have a Checkbook IRA and the gold you purchase must be Gold Eagles from the U.S. Treasury. Checkbook IRAs are complicated to set up and undergo a lot of scrutiny. If you want to open a Checkbook IRA you should consult a financial specialist.
Performing a gold IRA rollover is fairly easy to set up, the process is the same as to change any of your retirement plans. You fill out an application and submit it. Typically it only takes one to two days for your account to become active. Once your account is set up an account representative will reach out to you to coordinate the purchasing of whatever type of gold you wish and putting it in your account.
Gold IRAs make a lot of investors feel safer during turbulent financial times due to the fact that they actually own a material as opposed to a piece of paper that may lose its value at any time. It isn’t hard to setup a gold IRA and you do not need to put your entire portfolio into the account, in fact, you shouldn’t. It is never good to put everything you have into one investment source. Financial advisors recommend that you have no more than one third of your retirement investments tied up in any one source, including gold. Before jumping into gold or any other investment you need to look at your portfolio and determine what investment options are good for you.