Posts Tagged ‘Precious Metals’

Four Questions and Answers: Precious Metals IRA

Monday, August 20th, 2018

Investing in a precious metals IRA can seem quite opaque at times. Moreso than investing in an asset more common like real estate, simply because it’s quite a rare investment type. Understanding how a precious metals IRA works, the rules, and what to avoid is essential for every successful investor.

Can I buy and store the metal myself?

Unfortunately no. In order for the IRA to be qualified by the IRS, it must be held by the custodian. The custodian will have a handful of metal dealers that they work with, that store the metals accordingly, have low storage fees, and are full IRS compliant.

What metals are allowed?

Within gold, silver, platinum, and palladium, there are several types of metals that are allowed. Popular bars or proof coins include American Eagle, Australian Kangaroo or Nugget, Austrian Philharmonic, Canadian Maple Leaf, Credit Suisse – Pamp Suisse Bars 0.999 fineness, U.S. Buffalo Gold Uncirculated coins with no proof, plus more. These selections change depending on the metal type you choose.

What fees am I likely to incur?

Accuplan Benefits Services strives to help our customers keep as much of their retirement funds as possible, so we keep our fees appropriately low. See the graphs below for more information on our fee structure for precious metals IRAs.

 

How does adding precious metals to my IRA benefit me?

There are a handful of reasons that precious metals are beneficial in a retirement account. To highlight a few, diversification, liquidity, preservation of wealth, and hedging against inflation. Precious metals have a value that is tangible, that you can touch and hold, so in that regard, it offers peace of mind in that you can see your investment. Unlike paper assets like stocks and bonds, gold traditionally performs well even when the economy is trending downward. It holds its value despite threats of inflation, rising national debt, and market instability or crashes.

 

Bitcoin isn’t for Everyone – Invest in Tangible Assets

Monday, June 18th, 2018

There can be no question that Bitcoin has posted impressive gains in recent months. As of mid-December 2017, the world’s most well-known cryptocurrency broke through the $17,700 price point, up from just $4,751 at the end of August 2017. As of mid-June 2018, Bitcoin’s price point is at $6,718. Despite the large profits that the digital currency’s investors have been able to generate during that period of explosive growth, there are many who believe that Bitcoin could collapse just as quickly as it has grown.

Why Will the Crypto Bubble Burst?

The strongest reason to believe that the Bitcoin bubble will burst in due time is the fact that, despite its soaring value, Bitcoin has very little actual usefulness as a currency. Present estimates hold that only about 10,000 companies in the world actually accept Bitcoin as a means of payment. Owing to this fact, the explosive growth of its value has virtually no correlation to real-world purchasing power.

Most of the current value of Bitcoin is thanks to an enthusiastic rush of investors looking to get in on the growth. Coinbase, a major cryptocurrency exchange, recently reported adding as many as 300,000 new accounts in a single week. With so many investors flooding in to buy, the value of Bitcoin has been artificially inflated, producing a textbook example of a bubble ready to burst.

Get into Tangible Assets

By now, you almost certainly see the most obvious dangers of Cryptocurrency. Unfortunately, the effects of a Bitcoin bubble burst are unlikely to be confined to the seemingly isolated cryptocurrency market. Stocks of companies that do accept Bitcoin have seen their share of otherwise unwarranted growth as the digital currency has skyrocketed in price. Shares of online retailer Overstock, for instance, nearly tripled in value between July 2017 and November 2017. Some market experts even believe that a Bitcoin burst could trigger a more general market decline, affecting securities across the board.

With so much uncertainty in finance at the moment, tangible assets offer the same permanent value proposition that they always have during periods of volatility. Real estate and precious metals, the two most major classes of tangible assets, have more than proven their ability to weather bubbles, recessions and even depressions in the past. Gold, in particular, has shown itself to be a reliable safe haven investment for investors who want to limit their risk exposure when markets show signs of strain. For investors who are skeptical of Bitcoin and a stock market that could prove to be more volatile following a cryptocurrency bubble burst, tangible assets present a relatively safe option that will hold value through hard times.

How a Gold IRA can Help you Diversify your Retirement Account

Tuesday, May 1st, 2018

We love talking about how a self-directed IRA can benefit your retirement. Most investment professionals suggest that a diversified portfolio (like a gold IRA) is the smartest way to go and that is exactly what a self-directed IRA does. It gives you a more diversified portfolio because you can invest in other things outside of the regular stocks and bonds. These non-traditional investments can be in things like real estate, gold or more.

If you have wondered why investing in gold or silver may be a great option for you, check out our video below. We talk about a gold IRA, also known as a self-directed IRA that is invested in gold.

When storing your gold in this vault you will be charged a small minimal fee. The monthly storage fees are below.

Monthly Storage Fees:

The asset value of metals: gold only, silver only, both metals
Less than $25,000: $8, $10, $10
More than $25,000: $12, $18, $18

It’s important to remember that one of the great reasons for having some of your retirement assets in gold is that it’s a great way to diversify your portfolio. The other great thing is that gold is looked at as being a standard of value across the globe. It is highly unlikely that gold will ever be worth nothing. If it happened to be worth nothing one day then you still have the saving grace that you will own the actual gold. If the stocks you own ever become worth nothing what do you have to show for it?

These are just a few reasons why a gold IRA could be a great option for you to invest in with your retirement account.

If you would like to know more about a gold IRA or how to set one up then contact us today.

How a Gold IRA Improves your Retirement Account

Monday, May 22nd, 2017

Not a whole lot of people know you can invest in gold, nonetheless, invest in gold with a gold IRA. But you can and for some retirement savers, it’s the answer they’ve been waiting for. If you’re the type that likes to invest in commodities or hard assets, then a gold IRA might have what you’re looking for. Here are a few examples of how a precious metal IRA benefits everyday savers like you and me.

Hedging against U.S. dollar

A lot of investors, in times of economic instability, turn to commodities as an investment. The reason for this is that generally, hard assets like gold, oil and natural gas retain their value when the dollar does not.
Usually, gold’s price per ounce rises during inflationary periods, or as consumer prices go up. So as the cost of day-to-day living increase, so in turn does gold’s value. This is how you help protect your purchasing power.

Portfolio diversification

Precious metals historically have a weak correlation to price movements in the financial markets. Especially the stock market, which give you the advantage of avoiding market volatility. Best advice is to get your retirement account solely out of the stock market, with a gold IRA. To place your bets on only one investment type can be dangerous. With foresight and a trusted investment advisor, you can carefully diversify and avoid a potential crisis.

Steadfastness

One of the biggest reasons that investors choose gold and other precious metals is stability. Precious metals get a reputation for being a “doomsday” investment, the type of investments that you make if you’re uncertain of the economic future. There’s a great reason for this. Number one would be that gold has been around for as long as anything else on earth, and it’s still used in our everyday life. Number two might be that there’s a finite amount available, thus making it valuable, just by its existence.

 

Using Your IRA to Invest in Precious Metals: Q&A

Thursday, October 29th, 2015

precious metals img 2

You most certainly do not have to work on Wall Street to know that things have been rocky the last few months for the U.S stock market. It seems that it’s an everyday occurrence that there’s mass hysteria on whether or not the Fed will raise rates, and if you’re like most Americans with an IRA, pension or 401k, you pay attention, because your retirement could be at stake. When the market crashed in 2008, it was said that retirement savers lost $2 trillion in the stock market, and there was nothing that could be done to get those funds back. It left millions of hard-working Americans with depleted accounts and no answers.

Today, I’d like to think that we’re smarter with our money, that we’ve self-educated, and that we now know how to make the market work for us. The answer is diversification. And today, we’re going to specifically talk about diversification with a gold-backed IRA.

Q: What Type of Precious Metals and Coins are Approved Investments?

precious metals

Click to enlarge image

A: Only gold coins that are legal tender with 0.9999 fineness are allowed in an IRA, with the exception of the American Gold Eagle, which has a fineness of 0.9167% fineness. Other gold coins allowed to be put into an IRA include the American Buffalo, Canadian Gold Maple Leaf, and Australian Gold Nugget. The popular South African Krugerrand is not permitted to be included in an American IRA because it’s fineness is only 0.9167%
The regulations that govern gold contributions to IRAs call for a minimum purity of only 0.995%, most gold bullion bars are 0.9999% pure.

Q: Can I Take Distributions of Physical Metal Instead of Cash?

A: Yes, distributions from an IRA can be cash or non-cash. The only issue will be that the distribution will usually be taxable to you (except for a Roth IRA), which would mean that you would either have to liquidate enough metals to pay the taxes, or you would have to use cash from your personal accounts to pay the taxes.

Q: Are There Monthly Storage Fees?

A: Asset value of metals:

fees metals

Q: How is the Metal Held and Stored?

A: Here at Accuplan, all precious metals are stored in our secured vault with Brinks in Salt Lake City. Tax laws require that a licensed custodian hold precious metals for your IRA. All metals are counted and verified upon receipt in the Brinks vault, and you will receive an email notification along with a certificate of ownership when the metals are verified at the vault.

There are many ways to help protect yourself in your day-to-day activities, so why not also protect yourself from a financial crisis as well with a gold-backed IRA?

Author: Tanya