Difference between IRA and Roth IRA

Want to start putting money away for retirement but don’t know where to start?  In today’s difficult economic times it can seem difficult trying to find the best way to save for retirement.  The two main places that one generally starts with when it comes to retirement are an IRA and a Roth IRA.  This article will delve into each one and provide clarity as to which option is the best way to save for retirement for your particular situation.

Difference between IRA and Roth IRA

Let us start with the IRA first. The IRA is short for “Individual Retirement Account,” and is straightforward for the most part.  Basically, one deposits a certain amount of money into the account each year, and once they reach the age of over 70 they are then allowed to withdraw the money from the account in stages.  There are a multitude of investment options that one can consider when determining what to do with their money, such as stocks, mutual funds, bonds, and so on.

The money that is deposited into the account each year is tax deductible, so basically one can get a tax break on it.  There is no limit on who can apply for an IRA either, so those who make a lot of money can opt into the account alongside those who do not make a lot of money.  However, there are two things to consider when it comes to an IRA.  The first is that one can incur a penalty if they withdraw funds from the account early, along with having to pay taxes on it.  Even if one does not withdraw early they will still have to pay taxes on it anyways, and the amount is determined by the average income one earned over a set period of time.

Now on the other hand, a Roth IRA operates in a somewhat different manner.  One is taxed as they put money into the account, as opposed to a traditional IRA which is deferred until withdrawal. This can be beneficial in that one does not have to worry about taxes when withdrawing the money, but it can place a burden on one’s retirement funds early on.

ira calculator

As we can see gold backed ira is even better way to go.

Also, when it comes to a Roth IRA there is a certain annual income limit that one cannot exceed to deposit funds into the account, usually just over $100,000 if one is single, and $160,000 if married.  If that happens, one can simply switch over to a traditional IRA, but the tax situation changes as mentioned earlier.

By Michael Brown
Retirement planning expert and rollover IRA to gold adviser.

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Rollover 401k broker

Working with a broker has many advantages for the client.

A good broker has an unbiased opinion as to which company and product best fits the needs of the client. They have access to multiple carriers and are not subjected to the products of just one company. Brokers represent the CLIENT, not the COMPANY.

They can provide knowledge and experience. A good broker will deal with facts and not just give you an opinion of what they think is best. They will educate you on the subject, give you viable options and work with you to come to a solution.

Once the client-broker relationship is formed, the client has a professional to bring their questions and concerns to. Finance is often a confusing industry and it is important to have an experienced, trusted advisor to call upon when needed.

Going it alone is a huge gamble. Brokers and advisors are constantly learning about new products and viewing the financial landscape. It is not expected of an individual who is not familiar with the industry to be aware of the intricacies of financial solution design. People who are not familiar with the products could get themselves into an irreversible situation which could severely set them back for a significant amount of time.

Working with a broker is not a financial commitment. Most do not charge a consultation fee and will give you advice for free. Even if you already have an advisor, a second opinion on things is always a plus.

Rollover 401k broker

Trying to do his way gold rollover ira.

What is a 401k rollover?

A 401k rollover is when an individual chooses to transfer the funds of an existing account with a previous employer to a new company. Individuals usually do this to have better control over their retirement savings and retain the tax benefits that they enjoyed with their previous plan.

What happens if I leave my 401k with a previous employer?

401ks that are left with an employer after an individual has severed ties with that organization can either keep being invested or put on hold. The individual can no longer add funds to the account and investment options are usually limited.
Can I just cash out my 401k?
You can elect to have the plan administrator write a check for the entire 401k amount. In fact, this is the most popular option in the United States. Unfortunately, this is also the worst possible option. If chosen, not only will 20% of the entire account be deducted for tax purposes, 10% more is due as a penalty. All tax deferral benefits of the accumulated amount are also lost.
What is the rollover process like?
The process of rolling over a 401k or IRA is simple. The client will consult with the broker to devise a plan and determine an appropriate investing strategy for them. The client then fills out an application and the company that is receiving the assets communicates with the old company to secure the funds. This process usually takes about a month, but can be longer. Once the new company is in possession of the funds, the agent will deliver the new policy. Upon receipt of the new policy, the client has up to a one month “free look” period in which they can change their mind about the new policy without any penalties.
What is an annuity?
An annuity is an investment vehicle designed for retirement savings. There are two stages of an annuity, accumulation and annuitizing the funds. The accumulation stage is when the investor grows the investment. Upon completion of this stage, the investor has the option to annuitize, thus turning his investment into an income stream for life.
What’s the difference between a fixed annuity and a variable annuity?
A fixed annuity provides a guaranteed fixed interest rate whereas a variable annuity is invested in the market, usually in mutual funds.

By Michael Brown
Retirement planning expert and rollover IRA to gold adviser.

401k benefits

Preservation of Tax Advantages

Just like your 401k or IRA, rolling over you funds into an annuity will maintain the same tax advantages that you currently enjoy. Your investment will still grow tax deferred and you can still contribute on a tax free basis.

Less Restrictions

The benefits of a 401k or IRA are great, but let’s face it; the IRS puts a pretty tight lid on how you can access your money and has strict limits on how much you can contribute in a given year.  If you decide to roll over your funds into an annuity, some of those restrictions are lifted.  First off, you can contribute as much as you want to the account in a given year, there is no limit.  This can be very beneficial if you are getting closer to retirement and feel as if you need to catch up in saving.  In addition, if you need access to your money before 59 ½, companies usually allow either a 10% withdrawal option of your entire account value in a given year, or all of the gains, without any penalty.

401k investing

 Access to Greater Investment Options

Let me ask you a few questions.  How much experience do you have investing?  How much time do you spend choosing where to invest your money?  How much is this time worth to you?  Do you think you can outperform someone who does this for a living every day, all day long, and has decades of experience?  If you are like the majority of people who work for a living you do not want to spend your free time researching and analyzing the market.

Instead of guessing on how to invest, why not let a seasoned professional assist you, or manage the investment entirely?  If a client chooses to do so, a professional money manager will select and manage your investment for you.  He will be the one who monitors the investment and chooses the mutual funds.  We will take into account your risk tolerance and investment objectives, then structure a plan to help suite your needs.  As time goes on, so do fluctuations in the market.  Money managers will keep your portfolio up to date and make sure that you are getting the most out of your investment.

Guessing in the market is essentially gambling and not the optimal way to go about building a solid portfolio.  This is supposed to be money for your future, so let’s be smart about it.

Diversification & Automatic Asset Reallocation

If you ask someone who has a lot of investment experience what are the most important factors for success, they will tell you 3 things: time in the market, diversification, and asset allocation.

Diversification speaks for itself, you don’t want all your eggs in one basket, but it is a much more complicated thing to do than most people realize.  With the help of an experienced advisor, you can learn more about this process and begin to invest your money in a much more safe and efficient way.

A good company will allow their clients to have the assets in their investment automatically reallocated periodically.  Well, what does this mean?  As you invest in the market, you will have your money split into different asset categories, typically equity and bonds.  The more equity you have, the more aggressive the portfolio is.  Respectively, the more bonds you have, the more conservative the portfolio.  When analyzing your risk tolerance, a ratio of these two categories will be formed depending on your time horizon, economic situation, and overall preference on how you want to invest your money.

Undoubtedly over time this ratio becomes unbalanced and will be different from when you started.  If one asset class outperforms or underperforms the other, your ratio will become distorted and your investment objective falls off track.  The ratio should always stay balanced so your money is being invested the way it was meant to be.

investment portfolio

Save some gold for retirement days.

Premium Based Fee Structure

Although we hate to pay them, fees are unavoidable in the world of investing.  When choosing an investment many people overlook the annual fees which can be a huge mistake, as they can be devastating to the overall performance of your investment.  In the end it’s about what you NET, not how much GAINS you had.  Traditional fees are usually based on the value of your account.  For example, if the fees associated with your current investment are 2% of the account value, then you are paying 2% of the total value of your account to invest in that vehicle every year.  With this “traditional” fee structure, the amount of money an individual pays in fees increases as their investment increases.  Let’s say your investment starts at $100,000, in this example your fees will start at $2,000.  Now let’s say the investment doubles to $200,000.   You are now paying $4,000 in fees.

An investor should have options on how they would like to be charged.  Along with the traditional fee structure, some companies also offer the option to calculate fees based on the initial investment amount.  To better illustrate this let’s look at someone who rolls over a 401K that has a current value of $100,000 and the fee to manage that account is again, 2%.  If this individual decides to utilize the premium based fee structure, the fees that they will pay each year are based on that initial investment (which would equal $2,000) and will not change throughout the years.  Therefore, as the account increases in value they are still paying the same amount in fees, essentially paying less and less of a percentage annually.  Again let’s say the account doubles to $200,000.  This individual is still paying $2,000 in annual fees and that initial 2% charge has shrunk to 1%.

Premium Bonus

Based on your initial investment, most companies will give you a bonus credit similar to those offered by mutual funds.  It depends on the amount that you want to invest, but some bonuses can be very large.

 Optional Riders

You insure your house, you insure your car, and you insure your health.  Why are you not insuring your retirement?  Some companies have an option that can guarantee against the loss of your investment.  If you are like most, you have seen your investments hit hard with the recent recession.  In these unsure times guarantees are more valuable than ever, and they are available.

With theses riders a “floor” is set under your investment that protects against market declines.  If your account declines and is below the “floor”, the company will restore your investment to its original amount after a certain period of time.

In addition, if your account increases in value the client has the option to reset this “floor” and lock in these new gains.  This also resets the period in which you have to wait to utilize the rider.

An Income Stream for Life

With an annuity there are two phases, the accumulation phase and the distribution phase.  The accumulation phase is the stage of the investment in which money is accumulated.  But what happens when an individual wants to turn that money into an income in retirement.  With an annuity, this person can turn the value of their investment into an income stream for life.  This is called annuitizing; the insurance company takes your investment and pays you back, with interest, even if you outlive the value of your account.  The paychecks will keep coming until the day you die.

There are many options on how you can annuitize, and discussing this with an advisor is very important.  People use annuities because it is the only way to guarantee against the possible outcome of outliving living their money.  We are all living longer today, that’s a fact, and the number one fear of people retiring is running out of money.

Maybe this doesn’t sound good to you.  You don’t want to give up your investment just to be paid back.  That’s fine, you do not have to annuitize, it’s just an option.  You can annuitize some, all, or none of your investment if you wish.

By Michael Brown
Retirement planning expert and rollover IRA to gold adviser.

How to understand your 401k Plan

On your retirement plan document, under Investment performance or investment choices it will list all your funds names and the type. The type will tell options like: money market, bonds, target retirement date, large cap, mid cap, small cap and international which is emerging markets.

There will be categories like:

Value:  They invest in companies which it determines to be underpriced by fundamental measures. Often mature companies that have stopped growing but have consistent earnings.

Growth: A mutual fund that will focus on companies that are experiencing significant earnings or revenue growth. These funds are based on potential.

Blend: This is when that mutual fund has a combination of both types of companies.

  1.  Your retirement plan options could have examples like this:
  2.  Small Cap Value, Small Cap Growth or Small Cap Blend
  3.  Mid Cap Value, Mid Cap Growth or Mid Cap Blend
  4.  Large Cap Value, Large Cap Growth or Large Cap Blend
  5.  International Equity or Emerging Markets – They invest in small, medium and large companies in different countries.

401k investment

To determine which small, mid, large and international fund to have, compare the 1, 3, 5 and 10 year performance to see which fund has done better. By clicking on that fund, it will tell you the expenses. Never pick a fund that charges a front end load. This is when it cost you every time you contribute to that fund. Consider the expenses in your evaluation.

Once you have the final four funds to invest in is when you can make each 25% to get the 100% invested balance. When 401k investing, there is no right or wrong. It comes down to what you understand and believe to be the best thing for you. If you are an aggresive investor then you could pick one or two funds that are doing the best in the 1 year performance regardless of type and always maintain that strategy every 6 to 12 months.

Emerging Markets and 401k investments

Learn how to open a gold retirement account.

Mutual funds like money market and bonds are used when the market is declining. Their performance is always low and stable. Money market funds decline less than bond funds when the stock market collapses. Other funds like the retirement target date funds that say 2030, 2040 and 2050 are meant for when you planning on retiring near or at that year.

The negative on retirement date funds is when the market rises, they will perform less then the four basic types. They are fixed to have a certain amount of growth and stable stocks. As you get closer to that retirement year, those funds will have less growth stocks and more stable stocks that don’t earn a higher percentage. They are set that way for safety reasons but you miss out on earning more when the market rises as you see from the chart on the Home page.

The above information will give you a good guide line to your 401k. Once you read everything again from the first page and then get on your 401k website, it should all come together for you.

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By Michael Brown
Retirement planning expert and rollover IRA to gold adviser.

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What is a 401k?

The Internal Revenue Code was amended by Congress in 1978. Among the changes made was the addition of section 401(k), which dealt with the establishment of programs that would help with the retirement of business executives.

However, it soon became apparent that the type of retirement fund that had been developed was even better suited to workers. This was largely due to the fact that its contribution limits were far above those of Individual Retirement Accounts (IRA). It also allowed for employer contributions that matched at least some part of the employee contribution.

 What is a 401k Plan?

Most standard pension plans are limited by highly structured payments and the inability to choose different investment types. The Internal Revenue Code, in section 401k provides for a program that gives retirement benefits with much better flexibility.

401k plans allow you to put tax-defferred funds from every paycheck into an investment of your choice, under the supervision of your employer. Not only can you choose how your money will be increased over the years, but you can potentially increase the final yield. The investment options for 401k plans are numerous, ranging from mutual funds to bonds to money market funds. You also have the option to change your investment at any point during the life of the 401k plan.

Eligibility for a 401k Retirement Fund

What is the Eligibility for a 401k Retirement Fund?

For the exact information that pertains to your company’s 401k plan and your eligibility, you should contact the administrator of your plan or the appropriate official within your workplace that can provide you with a Summary Plan Description (SPD). However, there are basic guidelines that all 401k plans will invariably follow.

Company Employment

You must be employed by a company that actually offers 401k Retirement Plans. Even if you are able to afford contributions and desire to invest in your retirement, you must be working for a business in the 401k program or you cannot invest in it.

Employment Period

Depending upon your company, the time period will be different. What is not different is the fact that you will not be able to being investing in a 401k plan upon the beginning of your employment. The period will not exceed one year.


Even if you are in the upper level of management or have enough money to contribute enough of your paycheck consistently, you must be 21 years of age to be eligible.

401k Investment Opportunities

What kind of 401k Investment Opportunities Exist?

It is important to keep in mind that each type of investment has its own degree of certainty and uncertainty. Since all investments perform differently, one way to manage risks is to diversify your portfolio by investing in a blend of different types of assets.

Aggressive Growth Funds are comprised of stocks with greater-than-average potential for growth. Such stocks might include start-up companies, smaller companies, or companies in high-risk industries.

Balanced Funds are also known as Life Style Funds or Asset Allocation Funds. Blending both stocks and bonds; these funds allow diversification with potentially lower risk.

Bonds Funds represent loans to Federal or local governments or to a corporation, with a promise to repay at a set interest rate at a predetermined amount of time.

Growth and Income Funds invest in companies with strong growth potential that also have a solid record of paying dividends (income).

Growth Funds investing in relatively stable and established companies, which may or may not pay dividends. These funds try to identify companies whose stock values are expected to increase.

International or Global Equity Funds invest in stocks outside the United States. While Global Equity Funds invest in both foreign and U.S. companies.

Money Market Funds typically consist of U.S. Treasury Bills, Certificates of Deposit (CD‘s), and other commercial investments.

Mutual Funds pool money from many investors and can invest it in various securities such as stocks, bonds, and money market instruments, and are designed to help reduce, but not eliminate, risk.

Stable Value Funds are designed to provide consistent, predictable growth over the long term. Sometimes referred to as the “fixed fund” or “guaranteed fund,” these funds are typically backed by contracts issued by insurance companies. This option is generally considered low risk. Company Stock- By selecting your employer’s stock you acquire an ownership interest in the company.

Stock Index Funds attempt to “mirror” the performance of the stock market indexes, such as the S&P 500.

401K Plan Advantages
gold ira retirement plan

401K Plan Advantages

Employee Contribution

When an employee enters into a 401k Retirement Plan, it is up to them to decide how much money they put into their investment.

Tax-Deferred Earnings

Any taxes that are to be paid upon money made from 401k investments are assessed after interest has been accrued. This means that the interest and growth on your investment is made with more money in your account than if taxes were pad when money was first invested.

Investment Options

People paying money into their 401k can regularly change and modify their investments with many different types of funds, such as mutual funds, bonds, and stocks.

Rolling Over 401k

You can easily move or “roll-over” your 401k Retirement Plan to another job and another type of investment when you go to another place of employment.

Matching Funds

Many employers will choose, as a 401k incentive to contribute some amount of money to your Retirement plan every time that you do so.


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By Michael Brown
Retirement planning expert and rollover IRA to gold adviser.

IRA Definitions

Individual Retirement Accounts (IRAs)
The problems that exist today which threaten the financial security of retired Americans face the self-employed as much as they do those who work in a company. However, 401k plans are available only to those who work in a company that actually participates in the 401k program. The only real alternative is an Individual Retirement Account (IRA). Sponsored by the U.S. government, it functions in a very similar manner to a 401k Retirement Plan. However, it is available to any American with enough money to contribute, as well as being subject to a few other eligibility rules.

401k rollover to IRA

gold retirement

IRA Eligibility
You can set up an IRA if you have any income at all or money that is reported on your W-2 statement. Essentially, if you worked and were paid for it you can have an IRA, and it does not matter if you were paid $100 dollars or $100 million last year. The Internal Revenue Service (IRS) allows you to contribute up to $2,000 of your earned income (or the amount you earned if it is less than $2,000) into an IRA, as long as you are under age 70s.

Types of IRAs
Keough Pension Plans
Keough Pension Plans are similar to traditional IRA’s. However, the difference between them is that Keough Plans are divided into two groups: Defined Contribution Plans and Defined Benefit Plans. These two plans allow a much greater contribution on the part of the employee.

Defined Contribution Plan:
Defined Contribution Plans allow an employee to add up to $30,000 a year, or 20% of their income into an IRA fund. However, the level of contribution cannot be changed or altered and remains constant throughout its entire duration.

Defined Benefit Plan:
Defined Benefit Plans allow a large annual contribution, but differently than Defined Contribution Plans their funds are calculated differently. Rather than setting a contribution and making it regular and constant throughout the life of the plan, a benefit goal is chosen. Contributions are then assessed, with the help of an accountant or financial professional, on a regular basis to determine what is necessary to achieve the goal and what is available to contribute.

Roth IRA
Roth IRA’s are very similar to traditional IRA’s in that they allow for contributions from the income of an employee to fund a retirement investment. However, rather than being tax-deferred, contributions are made after taxes have been paid. This precludes pre-tax growth with more interest growing from more money, but once benefits are paid out upon retirement, no income is due on them.

Simple IRA
Savings Incentive Match Plans for Employees (Simple) IRA’s are a way for smaller businesses to offer retirement plans to their employees in a way that they might not be able to. Very similar to 401k Retirement Plans but applying to businesses that have 100 employees or less, it allows workers to contribute tax-deferred income into a fund to be invested and developed for retirement.

Spousal IRA
If you or your spouse does not work or has an income less than $2,000, it might be difficult to provide for retirement. Spousal IRA’s allow for a retirement fund that can be paid for by an individual’s spouse should an individual not be able to afford contributions.

412(i) Plans
412i plans operate similarly to 401k plans. However, they are ideal for small businesses that seek to provide retirement funds to their employees when numbered six or fewer. Contributions are tax-deferred funds from income, and unlike 401k plans or other retirement funds, benefits can be cashed out upon retirement in a lump sum rather than being spread out in many payments.

Traditional IRAs vs. Roth IRAs
Traditional IRA’s require only that you have an income and that you are under the age of 70 and one half. Roth IRA’s demand an income of under $110,000 if you are single, and under $160,000 combined for a married couple.

The maximum contribution for both Roth and Traditional IRA’s is $2,000. If your entire income is less than $2,000, you may invest it all.

While Roth IRA’s are not tax-deductible at all, if your employer does not offer any retirement plan at all, including a 401k Retirement Plan, you may write off your Traditional IRA contributions as tax-deductible.

Tax Advantages of Contributions
The advantages of Traditional IRA’s in terms of tax benefits is that you can usually write off your payments. Also, by contributing tax-deferred money, you will have more money in your fund earlier that will grow greater interest. Roth IRA’s, while you can only contribute income that has already been taxed, will not require additional taxes when you actually withdraw your money.

Tax Penalties
While there are certain exceptions, there will be a 10% excise tax penalty against you if you remove money from your IRA of any type before age 59 and one half. If you hold your money from a Roth IRA and do not use it in any way for five years, you will not be penalized.

Required Distributions
Traditional IRA’s require that distribution begins no later than the point a which you turn 70 and one half years old. Roth IRA’s can begin distribution any time after age 59 and one half.

By Michael Brown
Retirement planning expert and rollover IRA to gold adviser.

Investing With Gold 401K Options

If you have been following any of the current market trends, you may already know that the gold market is experiencing some of the highest levels to be seen in decades. When you want to be a part of it and take advantage of both gold bullion and gold, you may want to think of seeing what your options are in gold 401k investing. Believe it or not, you can actually add precious metal funds to your existing 401k. All you have to do is look into your current 401k and see if the option is available to invest in precious metals such as silver, gold and platinum.

It is important that you check with the human resources or personnel department at your current company to find out what your options are for investing in gold 401k. However, it is important that you remember that every investment will have its own risks. Where gold has been rising for quite some time, you can always see it coming down when you least expect it. This is why it is very important that you educate yourself on gold 401k options and all that has to do with investing in precious metals.

401k Rollover options

401k rollover to gold

Many professionals, investment blogs and printed publications will tell the investor just how important it is to diversify. While you can use gold 401k investing as an option, you want to make sure that it is only a small portion of your investment portfolio. Most of the time, it is good practice to proceed with caution when it comes to adding risk to your 401k. Professionals in the investment field will tell you that if you want to exercise risks, it will be smarter to move towards a separate IRA to try your hand at risky investments. This is why some investors will do a rollover IRA and portion some of the money toward gold and precious metals.

A lot of people who are interested in gold 401k options will look first at investing with gold bullion coins. By investing a small amount of money initially, you can see how the results pan out over the next six months. If you are successful and you see a good rate of return, then you can add more to the investment pool the next time around. While it may not be the same outcome, you can at least go in knowing what your experience was the first time around.

Whenever you have a retirement account, you should always proceed with caution. After all, this is money that you will be relying on in your later years. You need to have the perfect balance of risk and safety in order to keep your money and have it work for you effectively. While gold is always a viable option, you simply need to educate yourself on all of the trends before diving in. You may find that gold investing is not something you want to get involved in or you could end up getting lucky and finding that gold 401k options were the smartest decision you have ever made.

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401k Rollover to IRA

Before quitting your current job, you need to decide whether you want to cash out your 401k plan or move to another retirement plan. A retirement plan in your new company could be a new 401 k plan, an IRA plan or a Roth IRA plan. The transaction of your 401 K to an IRA (Individual Retirement Account) plan is called rollover. Many people before leaving a company cash out for various reasons; here we will discuss why you should refrain from doing so.

401k rollover to IRA

gold 401k rollover

Cashing out Fund: A Bad Idea

The worst thing you can do with your retirement savings is  cashing it out. Unless it is hugely needed, let it rest in peace. When you cash out your 401K, you will be suddenly slapped with a hefty tax. Along with that, you may have to pay a 10% early withdrawal penalty if you are not yet 59 1/2. Here is an example of why you should never think of taking out your fund. If the combined federal and state tax rate is up to 35%, it means taking a sum of $100,000 out of your 401k can make you pay $45,000 in taxes and penalties, leaving a cash amount of only $55,000 to you.

Think about Rollover: The Best Option Left

When it comes to rollover from a 401k rollover to IRA; you are getting much lower investment expenses and providing yourself with wider investment options in the market. You can make a switch to varied discount brokerage firms to earn benefits of different investment plans. In addition, you can also opt to convert your 401k into a Roth IRA, which lets your retirement saving be tax-free. If your current employer has provided you a great 401k plan with ideal investment options and low fees, then there may be no need for a  401K rollover.

401k Rollover to IRA procedures

  • Open an IRA with a reliable financial institution offering IRAs: Choose a financial institution that has plenty of  investment options for your savings. Generally, an ideal investment plan is accessible at low trade commissions and fees.
  • Tell your boss that you are interested in a 401k rollover to an IRA: Ask your employer to make the check payable to the investment company that you have chosen. It is also referred to as trustee-to-trustee transfer, which can help save up to 20% in tax with-holdings.

Lastly, when considering a 401K rollover to IRA you want to take full advantage of the opportunity. Do some research on Investment Companies in advance and consult with a  professional, after all it is your hard earned money.

Why You Should Consider Precious Metals IRA Investing

With the tumultuous economic climate we have been in the last few years, many people are confused about where they should invest their retirement funds. Many people have lost faith in the stock market, which is not very friendly to small investors. In addition, interest rates are so extraordinarily low, that yields on bonds and CDs are negligible. Rates are so low that the “return” you will get is likely to be less than the inflation rate, therefore, in reality you will be getting a negative rate of return on your investment. So, where can a person turn in order to safeguard their retirement portfolio?

Precious metals IRA investing could provide you with an answer as a complement to your other investments to protect your wealth and purchasing power. Precious metals consist of gold, silver, and platinum. We will focus most of our attention on gold, but the other two are also viable choices.

precious metals ira investing

precious metal in ira

Over the past decade or so, gold has gone up more than 400%. There are very few investments you could have made which would give you a better return than gold has over the past ten years. You may be wondering if this trend is likely to continue.

Nobody can predict the future for certain, but there is very compelling evidence that tends to support higher gold prices for years to come. Here’s why:

The two largest currencies in the world the U.S. dollar and the Euro are under assault. Both of these currencies are fiat currencies, meaning they are backed by no tangible assets whatsoever. Since the U.S. dollar is still the world’s reserve currency, we will primarily discuss the dollar, however, many of the problems that plague the dollar are also applicable to the Euro.

It is no secret that the U.S. government has been running up some incredibly large annual deficits of late. That is troubling enough, but the manner in which the U.S. is financing this extraordinary debt is even more troubling. In normal circumstances the U.S. Treasury will finance the nation’s debt by issuing Treasury bonds to investors. These investors are both foreign and domestic, but many of these bonds have been purchased by Chinese, Japanese, and Middle Eastern governments and investors. Lately, the magnitude of the debt that has been issued by the U.S. Treasury has been so large that they cannot find enough investors to buy all their bonds. The U.S. government has “solved” this problem by engaging in what is euphemistically referred to as quantitative easing. With QE the U.S. Treasury issues bonds and the Federal Reserve “purchases” the bonds. This finances the governments enormous debt and injects capital into the economy in order to stimulate it. The problem with this scheme is that the government is effectively just printing up more money. Although, the are not actually printing it, conceptually, this is what they are doing. If you hold your wealth in dollar denominated assets, it is effectively making your investments worth less, because the government is diluting the value of your currency, the dollar.

You can create a hedge against this type of fiscal hanky panky by investing in gold and precious metals IRA investing is a great way to do so. Gold has certainly withstood the test of time, since it has retained its value irregardless of governmental or currency vagaries and vicissitudes. For all of recorded history, gold has been valuable, and it is unlikely that this trend will cease, highly unlikely. Consequently, gold is probably the safest investment you can possibly have. When you invest in gold, you won’t have to closely monitor stock and bond markets in order to determine when you should move or withdraw your capital. You can rest assured that your gold will always have value.

With precious metals IRA investing you will be investing in a physical gold product, not a gold ETF, so you can be assured that your investment will be safe. Normally, you will be able to set up a gold IRA account with one of a number of different companies that buy and sell precious metals. Once you have established your account, the physical gold that you now own will be sent to a company that operates a highly secure gold storage facility. You will have to pay a small fee annually to the company that is storing your gold, but you will own physical gold, which is an investment that has certainly withstood the test of time.

Diversifying an investment portfolio with precious metals for your IRA is something to research thoroughly. I hope you will take the time to get educated like I did. One of the ways in which I learned was to request a free gold investment kit from Regal Assets and I’m so glad I did because that knowledge it gave me made me so much more confident about my investing decisions.

By Michael Brown

Retirement planning expert and rollover IRA to gold adviser.

Reflections On Q1 2014 For The Gold IRA Investor

I think it’s good to take a step back here and there and look at the recent history of precious metals investing as a way of evaluating what the future holds. I keep track of gold and silver pricing on a daily and weekly basis, but I don’t get too caught up in the short-term ups and downs because I’m interested in investing in gold IRAs for the long-term. For instance, we all remember the big drop in gold values earlier last year. Some people panicked and saw gloom and doom, but I didn’t, because I look at history and the big picture.

One of my favorite resources for detailed, unbiased views on gold investing with regards to IRAs is the World Gold Council. Well, I should say, unbiased in the fact that they don’t represent any gold dealers. However, they are, in their words,“the market development organisation for the gold industry.” So take what they say with that grain of salt. They are general advocates for gold, and not exclusively focused on precious metals IRAs. But I’ve spent a lot of time on their site and I can say confidently that they have a wealth of great information for anyone who wants to learn more about gold for IRA investment purposes.


I’ve posted a short video from them below where Mr. Marcus Grubb talks about what happened in the first quarter of 2014 as far as gold demand and values. There is also some commentary on what the future holds. I encourage you to watch it. The highlights include:

  • India, China and U.S. demand
  • How gold ETF demand fell in the first quarter of 2014
  • Gold bars and coins demand is up
  • Jewelry is also up
  • Central bank demand for gold is up (diversification from the dollar and Euro)
  • Gold supply is effectively flat
  • And finally, his conclusion that gold interest across all sectors remains strong now and into the longer term

I hope you find this kind of information as helpful as I did. It’s all about getting educated about so that you can make an informed decision about your precious metals IRA investing. When you are ready to take the next step and see what your options are for adding gold to your portfolio, I highly encourage you to contact the folks at Regal Assets llc. They have tons of information, including a free gold kit, that are really helpful. And I’ve found that their representatives are not only friendly, but really concerned about helping the gold IRA investor make the best possible decision that’s appropriate for their portfolio. In other words – they don’t just want to sell you some precious metals, take the money, and run. They want you as a long-term, return customer. It’s one of the reasons they have such a high BBB rating.