How To Invest Your IRA In Gold
Gold IRA investing will fully protect your retirement from inflation. This can be done in 2 ways. These are:
- Investing in paper (ETFs and stocks), and
- Physical gold (bullion and coins).
Many people prefer paper stocks as they are easy to handle. You are free to buy any gold stock in your IRA. Depending upon the brokerage firm, you can also trade your stocks on the Internet. The biggest advantage with trading stocks in IRA is that they are not taxed until the money is withdrawn.
You can begin withdrawing money at 62 ½ , and at that particular time, money is added to your income and is taxed according to the tax bracket you are currently in. The income of people significantly reduces when they retire, so tax rate is not that high. Aside from that, the IRA also allows you to move in or out of your gold stocks without having to pay any capital gains tax. This is the big advantage when trading in gold stocks.
Regular gold funds, and Exchange Traded Funds is another way to invest in gold in your IRA. As movement is not as sharp as with individual stocks, so you won’t be trading as often, but they are best as an option if you are interested in long term exposure to gold.
Gold Certificates and mining company stocks or gold mutual funds are also good for gold IRA investing.
Physical gold is also a good way of investing in gold. But please note that there is a fee for storage and there won’t be returns until you decide on selling your gold. Nevertheless, the biggest advantage here is that you’ll have the chance to hold the actual physical gold itself if you want to. Likewise, you can sell it if you want to! There’s no one holding you back except yourself.
In all of those mentioned above, investing in physical gold (not paper gold) is the most preferred for a Gold IRA plan. It’s because you’ll be the one to decide for it and not that “big banking corporation” or “mutual fund brokers” or what have you. You’ll be the boss of your own investment and assets!
Gold IRA Rollover
Gold IRA rollover is a simple process which permits you to diversify part of your retirement savings portfolio, including previous 401ks (from your previous employer), or current IRAs.
The gold IRA rollover allows you to own gold and various other precious metals in your account as a part of your retirement plan. The gold IRA rollover is duly approved by IRS and involves no hassles. Best of all, it is completely free from any taxes.
In a gold IRA rollover, when there is direct transfer from one custodian to another, the entire process is simple and straightforward. The rollover process fails when the fund is not transferred within a stipulated time period of 60 days. In these circumstances, this transfer is viewed as a new, and thus, taxable.
A gold IRA investment performs exactly in the same way as your present IRA account, with just one exception that instead of investing your money in bonds, stocks, or other types of investment, you can have your investment in real gold bars or coins. However, you will not have actual physical possession of your gold if you choose to keep it safely in a depository until your retirement.
Thereafter, you can have the physical possession of your gold. You can even sell your gold for cash at that point or in the future.
Types Of Accounts That Are Eligible
A gold IRA rollover is best for all those who own the Traditional, Roth, SEP, or even a simple IRA account. Aside from this, various other retirement accounts are also eligible for a gold IRA rollover. These include 403B, 401K, thrift savings, 457 deferred compensation plans, pension plans, Beneficiary IRA, TIAA CREF, and Non-Prototype IRA.