Articles Categorized in: Blog

What is the Greatest Disadvantage of an Equity-Indexed Annuity?

EIA returns can vary more than fixed annuities due to being tied to market indexes; they also feature guaranteed minimum interest rates. These annuities offer investors tax-deferred earnings until withdrawal, eliminating the tax liability upon withdrawing from the contract. However, surrender charges could last 15+ years before investors withdraw funds from it. They are complicated Equity-indexed annuities as retirement investments have long been subject to heated debate, particularly concerning their fees and risks. Before considering equity-indexed annuities as an alternative...
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Are Coins Allowed in an IRA?

Precious metals are an attractive investment option for many individuals, yet the IRS imposes stringent rules regarding their purity – for instance, gold coins must meet at least 9167 purity to qualify as eligible investments in an IRA account. Donna McNulty established a self-directed IRA and invested in American Eagle coins in 2015. She received taxable distributions equal to the cost of these coins from this investment. Coins that are IRA Eligible Self-directed IRAs may invest in precious metals such...
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Utah Gold Depository

People often purchase gold coins and bars from dealers for investment purposes. Once purchased, these precious metals must then be stored safely by third-party facilities that charge additional storage and insurance fees. Some state lawmakers are proposing legislation to make gold and silver legal tender for residents within their states, as well as eliminate capital gains taxes for these precious metals. Others propose creating state-run bullion depository. What is a gold depository? Gold depository facilities provide superior security and insurance...
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Are ETFs Taxed in Roth IRA?

ETFs tend to be more tax-efficient than mutual funds because they track indexes and require less research, yet IRA investors should still remain cognizant of load fees and commissions which could detract from long-term investment returns. At minimum, to optimize your retirement portfolio’s diversification efforts and meet IRS rules, both stocks and ETFs should be included. Both can also be held within a Roth IRA. Taxes on Distributions ETFs make an excellent Roth IRA investment because of their lower expense...
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Is Inherited Gold Taxable?

Many individuals inherit precious metals from loved ones. While these assets can hold great cash value, it must be handled carefully to protect both their legacy and market value. Gold that you inherit is subject to tax, with its cost basis indexing over time and your rate of tax depending on how long it’s held by you. Cost basis After someone passes, their estate often includes precious metals like gold coins, bullion bars and other numismatic products which may be...
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Does a Self Directed IRA Need a Custodian?

Self-directed IRAs allow investors to invest in alternative assets like real estate, private equity and mortgages without incurring unnecessary tax liability; however, there are specific rules you need to be aware of before using this investment vehicle. Investors must double-check information contained within their account statements, including prices and asset valuations. Alternative investments tend to be difficult to value and this can make them vulnerable to fraudsters. 1. Fees Self-directed IRA custodians charge transaction and processing fees beyond recordkeeping charges,...
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What is Not Allowed With a Self Directed IRA?

Many investors turn to self-directed IRAs in search of higher returns or diversifying their retirement savings outside traditional assets, however these non-traditional assets may come with risks and may lack liquidity; furthermore, alternative investments often have minimal disclosure, both financial and otherwise. The IRS has rules in place which prohibit your IRA from engaging in certain transactions with certain individuals known as disqualified persons, known as “disqualified persons.” In this article we’ll explore these restrictions and how you can circumvent...
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Buying Gold in a Roth IRA

Roth individual retirement accounts (IRAs) offer investors an easy and tax-sheltering way to invest in physical gold coins and bullion. As with all forms of investment, certain rules must be observed when dealing in precious metals. As with any investment account, gold IRAs come with fees and additional requirements than traditional IRAs. Eligibility Roth IRAs provide an ideal retirement savings option for individuals who meet the contribution limit, enabling their funds to grow tax-free while giving them more disposable cash...
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What is a Gold IRA and How Does it Work?

Gold IRAs are unique retirement investment accounts that allow investors to use their retirement savings to purchase precious metals. Since these self-directed accounts allow the investor to decide how and what to invest in, their assets are under their own management and they have control of what goes in them. Gold IRAs provide many advantages, including tax savings and diversification benefits. Furthermore, they can serve as an insurance policy against inflation; however, like any investment there can be risks involved....
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American Buffalo Gold Coin

American Buffalo Gold coins are one of the world’s most beloved 24k bullion coins, boasting classic design elements with high precious metal content and legal tender status from the United States government. The coin’s obverse depicts James Earle Fraser’s iconic Indian Head Nickel design, while its reverse depicts a full-body left profile of an impressive American Bison modeled after Black Diamond, who lived at New York City’s Central Park Zoo during its opening decades. Legal Tender Gold has long been...
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