Gold Backed IRA’s are accounts which are backed by gold. Instead of investing in the usual bonds, stocks and funds investing in a gold backed IRA is a great option. Due to the economic uncertainty, investors around the world are considering backing up their investments by gold. Paper money, stocks, bonds and mutual funds are higher risk assets and they are controlled by governments and companies. On the other hand, Gold is a precious metal with an identity of its own; there are no authorities who hold the power to monopolize its value. That’s what makes Gold Backed IRA’s so inviting to invest in.
How Do I Open A Gold Backed IRA?
Let’s assume that affected by the current economic uncertainties you decide to convert around $30,000 from your savings in to a more stable and low risk asset like gold.
Firstly, you will be required to open up an IRA which is designed to hold gold investments and other precious metals like silver, platinum, or palladium. This will be the account in which you will transfer the existing funds you want to convert into gold.
Secondly, you will have to find a reputable and trustworthy gold dealer who would purchase the gold for you using your funds.
Thirdly, once you have purchased the gold you should have an experienced official custodian to deposit your gold into a depository that holds gold and precious metals. These depository companies manage and carry out all the transactions on your behalf and in return you are charged a reasonable annual fee.
Regal Assets, backed by some of America’s richest investors is a reputable company with substantially experienced Gold IRA Custodians. When going for a Gold Backed IRA, you should definitely consider Regal Assets as your first priority.
What Types Of Accounts Allow Me To Add Gold To My Retirement Portfolio?
If you are looking forward to adding gold to your retirement savings, you have two options:
1. Self-Directed IRA
You can open up a Self-Directed IRA. Self-Directed retirement accounts are different from traditional accounts, these accounts allows the owners to decide exactly what type of investments they want to make. Normally, being a low risk and high return asset, gold is the most favored choice. But there’s more, you can choose to invest between a number of other precious metals as well like platinum, silver or palladium. It is here that your custodian comes in to use, a good custodian like Regal Assets would provide you complete information on all the pros and cons and would help you get higher returns.
2. Gold IRA Rollover
Gold IRA Rollover is another option you can go for if you have an existing IRA or a 401(k) plan with your employer. Funds in your existing IRA can be easily transferred into an IRA account that supports gold and precious metal investments. This is called a Rollover. You can open up a new IRA with the help of an IRA professional. Once the request is approved your new IRA custodian will coordinate with our previous custodians and initiate the Rollover.
You can transfer the amount of funds you desire from your existing IRA into a Self-Directed IRA which supports gold investments without having to pay any taxes. This means a great opportunity for people who are looking forward to maximize their savings for their retirement.
Why Invest In Gold For Your IRA?
- To diversify your investments for greater returns and coping up with economic uncertainty.
- When stock markets crash, a rise in the value of gold can be seen.
- When currencies devalue, the value of gold increases.
- Investing in gold offers protection to the current assets you hold in your account.
- Major investors all around the world are investing heavily in gold.
- Unlike paper money, stocks and mutual funds, gold is not managed by governments or organizations, making it an ideal investment choice.
Is A Gold Backed IRA The Right Choice?
If you are a future oriented, patient individual who wants to sit back and see their investments compound, then a Gold Backed IRA is the right choice for you. Stocks and bonds are also an option but consider the dramatic rise and fall which can occur while handling these assets, this makes these assets really risky to rely on for your retirement.
On the other hand, gold is an asset which cannot be manufactured and as it is mined, it is in a limited supply. This makes it clear that the value of gold is bound to rise overtime. It is commonly known that the value of the US Dollar defines the value of most of the other assets; it is also observable that the value of the US Dollar has been uncertain over the past few years. The value of IRA’s that included such assets which could be affected by the US Dollar gradually decreased over the past few years, whereas IRA’s backed by gold or other precious metals continued to grow.
When investing in gold, you are not only limited to investing in physical gold. There are a number of other ways you can do this:
- Physical gold like bars and coins
- Paper assets like gold mining stocks
- Gold Exchange-Traded Funds (ETF)
- Certificates of gold deposits
When investing in a Gold Backed IRA, be sure to:
- Purchase a minimum of 99.5% purity level gold
- Purchase gold from reputed and approved companies
- Purchase coins which are minted at approved facilities
- Complete the transactions in the 60 day period to avoid taxes
- Follow all rules to avoid any penalties
When you decide to invest in a physical Gold Backed IRA, you should have a custodian you can depend on and trust blindly. Regal Assets is a renowned and respectable Gold IRA firm, with their skills and experience they have made a large number of retirement accounts recession-proof. Provided you are working with a well experienced custodian, Gold Backed IRA’s are bound to reward you when you retire. Best of luck!