Articles Categorized in: Blog

What is Not Allowed With a Self Directed IRA?

Self-directed IRAs allow greater investment flexibility; however, the Internal Revenue Service has regulations which prevent investing in certain types of assets such as transactions involving disqualified persons or sweat equity. Account holders with an IRA should be wary of prohibited transactions as their consequences could be severe. Engaging in such an act could result in your retirement account losing its tax-exempt status and become subject to federal taxes. Self-dealing Self-directed IRAs allow investors to invest in various alternative assets. However,...
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When Should I Sell My IRA Stock?

Many investors don’t realize that trading an IRA has different tax ramifications than trading in a taxable account. Learn to utilize the wash-sale rule and tax loss rules in order to minimize your taxable gains. Clients frequently inquire whether selling stocks from their IRA to meet required minimum distributions (RMDs) can help meet RMDs. The answer to this question largely depends on factors like age and how long one has held onto shares in their IRA. 1. Long-Term Gains Asset...
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Can You Own ETFs in an IRA?

IRAs provide investors with a tax-advantaged platform for investing pretax or posttax dollars in various assets, from ETFs and mutual funds, which both boast their own set of benefits, to traditional bonds. Both asset classes possess their own set of differences that should be considered when creating an IRA portfolio. ETFs may be particularly advantageous for IRA accounts as they tend to be more tax-efficient than many mutual funds. However, investors must be mindful of trading fees which could reduce...
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Can I Be the Custodian of My Own IRA?

Self-directed IRA custodians are responsible for safeguarding assets held within an individual retirement account and conducting investment transactions on its owner’s behalf while adhering to IRS regulations. Custodians may charge fees for their services including maintenance charges as well as transaction-based charges such as commissions or loads. Custodians typically only enable non-prohibited investments approved by their IRA owners. You can find a list of approved custodians on the IRS website. Banks Banks may act as custodians for individual retirement accounts...
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Is Physical Gold Better Than Gold Stocks?

Investment in physical gold such as bars or coins can provide an effective hedge in times of economic instability. But before making this commitment, several considerations must be addressed prior to investing, including storage costs. Gold stocks, ETFs and mutual funds offer investors indirect access to precious metal production and storage without the same level of protection offered by direct ownership of physical bullion. Price Appreciation Longer-term, stocks offer higher returns than physical gold; however, during shorter time horizons gold...
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Is Investing in Gold Safer Than Stocks?

Gold can add diversification to a portfolio, while not contributing any income or growth in specific companies or economies. Gold can be invested in many ways – from physical bullion coins and bars, futures contracts and investments in mining companies specializing in gold. Which method you select ultimately depends on your investment goals and risk tolerance. Investing in Gold Gold has long been considered an investment choice and remains a wise decision for those seeking a means of protecting against...
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Are Silver Krugerrands IRA Eligible?

Silver is an attractive investment asset. Its properties make it suitable for batteries, photovoltaic panels, touchscreens and semiconductors as well as serving as an important store of wealth. Silver coins and bullion must meet certain fineness standards to be eligible for inclusion into an Individual Retirement Account (IRA). This article explains how to open and fund such an IRA. 1. Silver Krugerrands are 99.9% pure Silver is an invaluable metal that finds many industrial applications. Due to its exceptional strength...
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Do You Pay Taxes on an IRA After Retirement?

Withdrawals from traditional IRAs, 401(k) accounts, and similar retirement plans as well as tax-deferred annuities are usually taxed as ordinary income; withdrawals made before age 59 1/2 may incur an early withdrawal penalty. Tax implications of an IRA vary based on whether contributions were made with pretax or after-tax funds, so please read further to gain more understanding about this important distinction. Contributions One key to tax-advantaged growth in an IRA is making regular contributions each year, whether that means...
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What is a Gold IRA?

Gold IRAs operate similarly to other retirement accounts in that they use pretax dollars to grow investment funds without incurring taxes until its withdrawal at retirement time. However, as with other IRAs, there are fees associated with opening and closing an account. These expenses include one-time setup and maintenance fees as well as seller markup costs, storage fees, insurance costs and cash-out costs. It’s a type of self-directed IRA Gold IRAs are Individual Retirement Accounts (IRAs) which enable investors to...
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Why is Gold a Dumb Investment?

Gold may seem like an appealing investment option if you’re looking to diversify your portfolio; after all, its price often increases as other assets decline. But you would do better to put your money in stocks that create tangible wealth rather than speculate on gold’s price in the future. Here is why. It’s irrational Gold remains one of the world’s most precious assets despite critics, acting as a safe haven in times of economic instability and seen as an effective...
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