An IRA is a great retirement account for anyone looking to grow their retirement nest egg over the span of your career. It makes saving even more advantageous because of the tax advantages that come with an IRA.
There are different types of IRAs including: Traditional, Roth, SEP, and Simple accounts. Each one of these accounts allows you to invest in the same types of investments. If you have a self directed IRA your investment options are broader. You have the option of a gold backed IRA, other precious metals IRA, real estate IRA and can even invest in other businesses.
When investing for your retirement plan you may be worried about the types of investments that are in your IRA. You could possibly be worried about inflation or even the stock market. Investing in something a little more stable and less risky is probably something you should do.
What about a gold IRA? Gold has proven to be the perfect hedge against inflation. It is also a great way to hold a real asset in your IRA rather than just a paper asset. Wether you buy gold or any other type of metal your precious metals IRA will have actual metal in your IRA. If the cost of the metal goes down you still have the same amount of metal in your IRA it is just worth less. Nor is the value of gold, silver or other precious metals to likely be valued at $0. It is possible though for the stocks you purchased to be worth $0 if the investment goes bad or company goes under. This sort of stability is exactly what some people are looking for in their IRA. Maybe you don't want all of your IRA invested in gold but would like a portion, that is totally fine. In fact, it is very wise because you are diversifying your portfolio.
Do you still have questions about a gold backed IRA? Let's dive into some of the more commonly asked questions in regards to gold backed IRAs.
What is a Gold Backed IRA?
It is merely a self directed IRA that follows IRS rules and regulations that allows you to hold physical gold in your retirement plan. Thus, giving you the peace of mind that your retirement is invested in something less risky than many of the alternatives.
Can I Invest in Any Type of Gold or Precious Metal with my IRA?
There are restrictions as to what types of precious metals can be in an IRA. To find out more about the actual types of metals that are allowed check Gold IRA FAQ
Can I Have Other Types of Investments in my Gold Backed IRA?
Yes, in your self directed IRA you can have other types of investments. Whether they be gold IRA, real estate IRA or something different. More than one type of investment in your self directed IRA is allowed.
If I Want to Transfer or Rollover My Current Plan Do I Have to Transfer/Rollover my Whole Amount?
No you do not. As I have mentioned before this is a great option as it allows you to diversify your account.
What are the Penalties/Taxes That I have To Pay When Transferring My IRA?
There are none when you transfer from a traditional IRA to a gold IRA.
I Would Like to Physically Hold the Gold, Is That Ok?
No! You cannot take physical possession of your gold. You must store the gold at an insured IRS approved depository in your name until you reach 59 1/2 years of age. You then can take the physical possession of the gold without penalties. If you do before you will be taxed.
One great thing about a gold backed IRA is that it is very easy to set up. To learn more about how to set one up and the associated fees read Setting up a Gold Backed IRA
You may have more questions about gold backed IRAs and feel free to ask them below or contact us at Accuplan Benefits Services.
Author: Nick Barker