How Do You Get Gold in an IRA?
Gold can be an appealing investment option for individuals concerned about an economic downturn, providing diversification and acting as a protector against inflation.
Gold can be added to an IRA in several different ways. Some investors purchase physical gold bars; while others prefer investing in gold-focused funds or ETFs; and still others invest in mining companies.
Investing in Physical Gold
Many investors choose physical gold (bullion or coins) for diversification in their retirement portfolios, using either a self-directed IRA or individual retirement account that allows precious metal investments as vehicles for investment.
Physical gold can add significant costs and fees to an IRA account that investors should be mindful of, including an initial account setup fee, annual maintenance fees, storage fees, seller markup (added onto spot price of metal), cash-out costs and possible seller markup (adds extra premium onto spot price of metal) and cash-out fees.
Investors must also consider the risk of theft when owning physical gold in an IRA. Investors should consult a financial advisor or tax professional in order to assess if owning physical gold is appropriate based on their budget and goals.
Physical gold investments are an effective way to combat inflation, but may not suit everyone. Investors looking for exposure without all the hassle can gain exposure through investing in gold mutual funds or ETFs.
Investing in Gold ETFs
Gold investments can be an attractive choice for retirement investors seeking to diversify their retirement portfolios, though not suitable for everyone. Before considering making any gold-related investments, it is crucial that you become acquainted with IRS guidelines as they apply to this investment type.
Gold ETFs and mutual funds offer an effective alternative way of investing in gold for those who do not want the hassle of owning physical gold coins or bullion in an IRA account. Alongside all the advantages that owning physical gold can bring, these investments provide trading in an easily accessible market place – another big bonus!
Consider their reputation, fees, investment options and storage facilities when choosing a company to manage your Gold IRA. Ideally you would look for one offering self-directed IRAs as this will allow for greater control in making decisions regarding investments. Furthermore, look for one with an IRS approved safe deposit box at a recognized storage facility; this will give added peace of mind that your investments are secure.
Investing in Gold Mutual Funds
Physical gold has long been a sought-after way to diversify retirement portfolios and protect against inflation, economic downturns and geopolitical risks. Unfortunately, its associated fees can quickly add up – these include one-time account setup fees, annual maintenance fees, seller’s fees (markup on spot market price of gold investors pay), storage fees paid to an approved depository facility (insuring against potential loss) as well as cash-out costs.
Investors looking for exposure to gold without incurring expenses can purchase gold-backed ETFs or mutual funds for tax-advantaged growth opportunities similar to stocks or other investments.
If you want to start investing with precious metals using an existing retirement account, IRS regulations allow for you to roll over existing traditional IRAs, Roth IRAs, 403(b), 457(b) plans or Thrift Savings plans into new precious metals-backed IRAs. Speak with one of Monex’s account representatives today about investing in non-traditional assets using self-directed IRAs such as precious metals.
Investing in Gold Stocks
Gold stocks offer an affordable way to diversify their retirement portfolio with precious metals without owning physical bullion or coins, tracking its price as it fluctuates just like any other stock can be held within an IRA account.
As opposed to physical IRAs, which require gold to be stored at an IRS-approved depository and managed by a custodian, investing in gold stocks eliminates this requirement while simultaneously diversifying IRA portfolios with increased income-growth potential due to many gold-related companies paying dividends.
Gold stocks do carry some risks. Like all stocks, they may experience value losses during a down market and unlike physical bullion may not perform as well during recessionary conditions. To help reduce risk and protect their retirement accounts from this type of investment opportunity, investors may diversify their IRA portfolio with other assets such as stocks, bonds and mutual funds.
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