Preparing for our financial futures can be a pretty intimidating process. There are many different options to consider when deciding to invest funds into an Individual Retirement Account (IRA).
There are various types of IRAs, each with their own qualifications. You should meet with your financial adviser to find out which one works best for you. In this article you will be introduced to gold IRA investing. This is the practice of investing a portion of your funds into precious metals.
Since the passage of the Taxpayer Relief Act of 1997, the federal government has allowed owners of IRAs to invest in precious metals, such as gold, silver, and platinum. Gold IRA investing has become very popular over the past ten years due to the fact that the price of gold has consistently risen during a time that stock prices became very unstable.
Many financial advisers have steered their clients toward gold as a hedge to protect their investments. We have seen the economy decline, led by the real estate markets, over the past decade. The price of precious metals has escalated over the same period of time, particularly that of gold. This has caused a greater demand for gold, which in turn has led to additional increases in the value of gold.
Gold can be added to any IRA in the form of bars or coins. Per IRS regulations, the precious metals cannot be held in the physical possession of the owners. They are required to be held in a depository that has been approved by the IRS, such as the Delaware Depository Service Co. located in Wilmington, Delaware.
Here are some tips to consider once you’ve made the decision to include gold in your investment portfolio. Gold coins must be determined to be 99.5% pure in order to be included in an IRS-approved retirement account and they must be classified as legal tender. Some coins that meet the criteria are the Canadian Gold Maple Leaf, the American Gold Eagle, and the Austrian Philharmonics. These are just a few of the qualifying coins. Your adviser can direct you to more.
Also, account holders can chose between gold coins, gold bullion, and gold stock (normally stock from mining companies that mine gold). Gold coins tend to be the most stable, while stock tends to be significantly more risky. There is always some risk involved in all investment transactions. You should seek the advice of a qualified accountant or tax professional prior to making any decisions of which form to invest in.
So how do you get started with gold IRA investing? The first step is to meet with your financial professional to decide which type of account you will qualify for. You will then need to fund the account. There are several options for doing this including: transfer of funds from another account, direct roll-over, or cash infusion. The final step is to start investing in gold, or other precious metal. This may sound like an over-simplification, however it actually is this easy.
Experts on gold ira retirement planning are available to assist you with your decision making process. You will have many questions you will want to ask, and it’s very important that you get fully informed. Which accounts qualify for investing in precious metal? How do you maintain your desired tax status? How do you process a roll-over of funds from one account to another? An expert in gold IRAs can answer these questions and help you assess your needs. Out of all the firms out there, we like Regal Assets the best. They have a very good BBB rating, guaranteed 7 day delivery and a very complete free investment kit to get you started.
Many people have already discovered the benefits of precious metals IRA investments and have found security for their financial futures. It’s never too late to start investing in your future, but every day you wait is money that won’t be growing and adding to your retirement funds. Waiting too long could mean the difference between “just getting by” in your retirement, and living comfortably.
By Michael Brown
Retirement planning expert and rollover IRA to gold adviser.