When thinking about retirement, you’ll notice that there are a lot of options out there. You can invest into stocks, bonds, retirement accounts, and even mutual funds. Now, while this may be the case, I want to speak to you about the opportunity that a Gold IRA provides you.
That’s why, today, I’ll be showing you everything you need to know about opening up a gold IRA. While it may seem like a simple account, you’ll soon find that they definitely work differently than traditional accounts.
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For your convenience, I’ll be breaking everything down into easy-to-read sections. This way, no matter your knowledge level, you’ll be able to bounce around if you need to. Here is a look at what I’ll be going over:
- Self-directed IRA
- Precious metals IRA
- Recap
Now that you know what I’ll be going over, let’s jump right into the facts.
Self-directed IRA
Before I can truly explain what a gold IRA is, I need to provide some background into how the account actually works. This is due to the fact that gold IRAs do not function the same way as a traditional IRA, which means that you need to know how the account is structured.
What is a self-directed IRA
A self-directed IRA is an account that allows you to have a more hands-on approach to money management. You can choose how much, where to go, and what to do with your funds. Now, while this may be the case, you’ll generally need to have a custodian help you through this process.
What is a custodian?
A custodian, in the world of finance, is someone who manages the account. They will handle most of the initial investment and design, and take care of the hands-on responsibilities that you would have to manage on your own. Think of a custodian as a primary aid for the account; you make the decisions, but they execute those decisions.
It might seem like I’m getting off-topic here, but trust me on this one, this is very important to know.
Precious metals IRA
Now that you know a little bit about self-directed IRAs, I can start to get into the real meat and potatoes here. A gold IRA is a precious metals IRA, and each type has the same rules. Precious metals IRAs work in a similar way to traditional IRAs in that you need to be at least 59 ½ to take withdrawals free of penalty, and you’ll be forced to take withdrawals at 70 ½.
Now, the accounts do have some key differences that you should be aware of. For example, as I mentioned earlier, gold IRAs and other precious metals IRAs need to be self-directed. This means that you’ll need the custodian that I was talking about a moment ago to help you manage the account.
Another thing to consider is the broker that you’ll be working with. Gold IRAs and other precious metals IRAs need to hold bullion coins in them, and they need to be held at an IRS approved location. This means that you’ll need to find a broker that you can trust in order to obtain the gold you want to keep in the account.
Precious metals IRAs are all self-directed IRAs that require multiple parties to help manage the account. Other than that, it’s very similar to how a traditional IRA works. I’ll have more on the buying process for you in a moment.
Buying gold in a gold IRA
When you want to use a gold IRA, you’ll need to use gold bullion coins as the value of the account. You have a few options when it comes to purchasing these coins, and either way will work just fine. You can either use money from another account to make the switch, or you can use your own funds to open the account on your own.
Now, before you do this, one thing you need to know is that you can’t directly manage the account on your own. This is due to the fact that there are specific regulations out there keeping you from keeping the gold IRA directly in your name. This is why you’ll need either a custodian or trust to handle the transactions on the account.
While a gold IRA may seem very complicated, it’s actually very simple. Just make sure that you find a broker and custodian that you trust to help you through all of the steps.
Final thoughts
A gold IRA can be a great tool to aid you in your investments needs. While it may not be as liquid or aggressive as a traditional IRA, placing your bet on gold is always a good idea. With a value higher than the dollar, and one that grows when the dollar regresses, a gold IRA can be a safe bet for anyone.
Gold IRAs can be great for a hedge against inflation, retirement, and even passing down generational wealth. What you do with a gold IRA is up to you, but it’s definitely something worth considering.
Now that you know the facts, do you think a gold IRA is right for you?
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