Articles Categorized in: Blog
Gold‘s price surge this summer sparked interest in investing precious metals through an individual retirement account (IRA), however investors should keep in mind that IRS rules prohibit IRAs from owning collectibles such as gold bullion coins. The IRS mandates that any gold IRA purchased be stored in an approved depository. While this might sound daunting, the process is actually fairly straightforward. Qualifications Investors looking to open a Gold IRA must deal with three entities to comply with IRS rules: a...
Read More
Typically speaking, any gains from investing in physical gold are subject to capital gains taxes. However, this rule doesn’t always hold. For example, in the US precious metal dealers must report large cash payments made directly to them to the IRS to prevent money laundering schemes. Precious metals are classified by the IRS as collectibles, with any gains from their sale subject to tax at an maximum rate of 28%. Capital Gains Tax When selling physical assets such as gold,...
Read More
Gold and precious metal investments can be lucrative, but it’s essential to protect yourself from investment scams. Scammers use emotional manipulation tactics to target vulnerable individuals and push them towards making quick, unwise decisions. These scams may involve false weight claims or counterfeit purity markings on coins. Always consult with a reliable professional before making your final decision. Social media Some gold scammers attempt to attract investors through social media or cold calls, posing as trusted dealers or investment gurus...
Read More
Physical gold investments such as bars and coins provide investors with a sense of security, yet gold bullion also carries risks such as theft or natural disasters that should be factored into your budget. Physical gold ownership in the US isn’t subject to legal constraints, though there may be expenses such as storage and insurance costs and capital gains taxes when selling investments. 1. 1 oz In the US, there is no limit on how much physical gold an individual...
Read More
As an investor in gold and precious metals, safeguarding your assets against thieves or creditors should be top of mind. Furthermore, to reduce political risk by storing the metals offshore is another priority. Home storage of precious metals can be costly to insure with a specialized policy and restricts access. Bank safety deposit boxes can also be susceptible to theft and have limited liquidity. 1. Safe Deposit Boxes Some investors choose to store their precious metals at home, in bank...
Read More
Before deciding to roll over your 401(k), always consult a financial planner. Failing to follow transfer rules could result in additional taxes or penalties being levied against you, leading you to pay extra money than necessary. Typically, it is wise to direct rollover into a traditional IRA for any investment earnings tax-deferred. What is a 401k rollover? Rollovers are a process by which you move retirement funds from one account type to another. A transfer can move funds directly from...
Read More
Self-directed IRAs allow investors to invest in alternative assets like real estate, private equity and precious metals that may offer higher returns than more conventional investments. However, these accounts require special custodians and come with specific regulations and rules that must be observed prior to initiating transactions. Therefore, it is vitally important that any interested parties understand these policies before conducting transactions with these accounts. 1. They offer more investment options Self-directed Individual Retirement Accounts (SDIRAs) allow investors to invest...
Read More
Gold can be an attractive investment option, but its storage costs add extra expenses and decrease returns on your total returns. Gold has long been seen as a haven for investors during times of economic distress, driving its price up dramatically. But are the risks worth it? No Paper Contracts Gold bullions offer tangible value unlike many other investments such as stocks. Their liquidity makes them an excellent way to hedge against inflation or catastrophic financial turmoil. Precious metal prices...
Read More
Gold investments can be purchased and held within an IRA; however, you will require an approved self-directed IRA custodian from the IRS in order to properly manage them. Furthermore, you may incur storage and insurance fees. Gold does not generate interest, so it should not constitute the cornerstone of your retirement portfolio. Instead, use gold as an asset class diversifier. Precious metals are a safe haven. Gold has long been seen as an effective asset to help mitigate market volatility...
Read More
Many banks, brokerage firms and robo-advisors offer Individual Retirement Accounts (IRAs). Individuals typically choose their investments themselves – typically stocks and bonds, mutual funds or ETFs have proven more successful over time than cash and CDs in terms of long-term performance. Establishing an IRA varies by provider, but generally involves providing personal details and funding the account with either bank transfers or rolling over an old 401(k). How do I open an IRA? Individual Retirement Accounts, or IRAs, are one...
Read More
