How to Buy Gold For an IRA
Gold has long held its value during times of economic instability, providing diversification benefits to an investment portfolio. More and more people are adding physical gold to their retirement accounts for this very reason.
Before purchasing coins or bullion for an IRA, there are several considerations you should keep in mind. This article explains how you can buy precious metals.
Find a Custodian
Gold has long been recognized as an invaluable commodity, acting as both an inflationary hedge and wealth builder over time. Furthermore, its global recognition makes it one of the safest investments available.
A reliable custodian will be able to purchase coins or bullion from approved distributors and store it in an IRS-approved depository, as well as provide advice about which type of gold would best suit your IRA. Before selecting one as your custodian, do your research carefully: check their registration with SEC as well as local/state regulatory authorities as well as consult financial advisors/investors for their advice or recommendations.
Self-directed IRAs allow for the purchase of precious metals and other alternative assets, like real estate. You can establish one with a reliable custodian before investing gold at Monex from one of their approved precious metal dealers.
Decide on a Custodian
A Precious Metals IRA allows you to invest in physical gold, silver, and platinum as retirement assets. Similar to other IRA accounts, but with the difference that precious metals IRAs allow you to purchase and hold precious metals instead of paper assets like stocks and bonds.
As part of setting up a gold IRA, the first step should be locating an approved custodian. These companies oversee IRAs and report back to the IRS on them regularly. They may charge one-time or ongoing monthly fees to manage your assets – some even charge storage fees which vary according to location.
U.S. Money Reserve is an experienced provider of IRS-approved precious metals. Our firm boasts an excellent rating with the Better Business Bureau and 4.8 stars on Trustpilot; our team can also assist in selecting an IRA custodian such as American Bullion, APMEX or Goldco. For best results we advise selecting an independent self-directed custodian with excellent customer service reputation.
Select a Distributor
Gold investing may not be for everyone, but it can be an effective way to protect against inflation and economic volatility. There may be fees involved with purchasing, storing and selling gold which may make the decision unnecessary for some investors.
IRAs enable you to invest in precious metals such as physical gold. Not all forms of gold qualify, however; therefore it is vital that when selecting a distributor they only sell products that meet IRS standards if opting for a self-directed gold IRA that offers greater flexibility than traditional IRAs.
Gold that qualifies for an IRA investment typically comes in the form of coins or bullion purchased from companies like U.S. Money Reserve. Keep in mind, however, that physical gold cannot be stored within an IRA account – instead being held in an IRS-approved depository until you submit a distribution or rollover request from within your IRA account.
Make the Purchase
Gold IRAs can provide an excellent way to diversify and protect against inflation. Plus, unlike company stocks which could go bankrupt at any moment in time, physical pieces of gold are immune from bankruptcy – providing an additional protection from economic uncertainty.
Owning physical gold in an IRA may seem like an attractive investment option, but there may be hidden costs and risks that make this an unwise choice. Failure to abide by IRS rules could expose your investments to penalties or fines from penalties or fines levied against them.
Once your account has been opened and maintained, in addition to one-time setup fees and annual maintenance fees, there may also be fees such as seller’s markup (the difference between spot market prices and your selling prices), storage fees, insurance premiums and cash-out costs (when it comes time to take required minimum distributions or RMDs).
If you decide to convert physical gold to an IRA, it’s essential that you find a trustworthy dealer with strong reviews. Be sure that they hold all relevant licenses, registrations, insurance, and bonds to protect your investment and ensure a safe transaction.