Articles Categorized in: Blog
An Individual Retirement Account, or IRA, is designed to hold various forms of investments; some are allowed by the Internal Revenue Service while others are not. When funds from an IRA are used for purposes other than retirement, taxes on earnings plus possibly a 10% penalty apply. There may be exceptions such as unreimbursed medical expenses or self-employed health insurance premiums which do not incur penalties. Taxes on IRA Distributions When taking out of a traditional IRA, any withdrawals that...
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IRAs are one of the easiest and most tax-advantaged ways to save for retirement, but choosing which type is the best may come down to your anticipated tax rates when retiring. Traditional IRAs allow income to accumulate tax-deferred, while Roth IRAs tax free. Other factors, like having access to an employer-matched plan with matching contributions can have an impactful effect. Traditional IRA If you want the upfront tax advantages of a traditional IRA, look no further. Anyone with earned income...
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Gold ETFs offer an economical means of investing in precious metals without incurring shipping and storage fees. Before investing, it is important to assess both your risk tolerance and investment goals before making your decision. Physically Backed ETFs store actual gold bullion in vaults, making them the most cost-effective way for investors who want exposure to this precious metal. iShares Gold Trust iShares Gold Trust (IAU) is one of the least costly ETFs to invest in; its expense ratio stands...
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American Gold Eagles are IRS-approved bullion coins that are popular among investors because of their lower upfront premium than market value. When it comes time to sell these coins, their modest additional premium usually makes a return when selling them back. Furthermore, these coins provide both diversification and liquidity benefits to your portfolio. They are a store of value Gold is an invaluable store of value, and American Eagle coin offers an easy way to add it to one’s portfolio....
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Gold can help diversify your retirement portfolio and decrease overall portfolio risk while providing inflation protection. Physical precious metals IRAs require the services of professional custodians, dealers and depository facilities – costs which add up quickly so it’s wise to carefully consider all expenses before making the leap into gold IRAs. Taxes Gold IRA investors who want to avoid costly penalties should use only companies with proven track records, transparent pricing structures and outstanding customer service. It is also key...
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The IRS considers precious metals such as gold coins and bullion bars to be collectibles, thus taxing them at higher rates than other investments. Furthermore, dealers are required to report cash payments exceeding a certain threshold in order to prevent money laundering activities. Many bullion investors wish to sell their gold anonymously. This may be possible depending on how the transaction is executed. Dealers must file a Form 1099-B The IRS mandates that precious metal dealers report sales and purchases...
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Roth IRAs allow individuals to save for retirement without incurring taxes at retirement. However, there are certain restrictions; only earned income may be contributed and investments that offer high total return prospects should be invested into such an account. There are various factors that influence investment returns; some short-term, while others long-term. Taxes Roth IRAs provide many tax advantages, including the ability to avoid capital gains taxes and income tax on dividends. By adding ETFs to your retirement portfolio, these...
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Gold can be an attractive investment option, but any profits from selling physical gold coins are subject to IRS taxes. Luckily, there are ways to reduce or evade them altogether. By investing in funds and assets that do not purchase physical gold, investors can avoid capital gains tax on their profits. Invest in small denominations Gold investments offer a secure diversification option, but you must first be mindful of some tax rules when investing. Gold can either be taxed as...
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Gold can bring some shimmer to your retirement portfolio by serving as both an inflation hedge and store of value, but should only account for a minor portion of total savings. An excess gold investment could leave you financially devastated during a market downturn, taking away from income-generating assets that can help ensure a comfortable retirement. Investing in Gold Gold is widely considered to be a safe and low-risk investment that may help provide diversification to your retirement portfolio, especially...
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A 401(k) is an employer-sponsored retirement plan that enables you to save before taxes and invest in various mutual funds, offering several advantages including lower investment fees and greater choice than an IRA. Target-date funds typically offer target allocations that take your age into consideration and invest in both stocks and bonds accordingly, often free of management fees that eat into returns over time. 401(k)s are a great way to save for retirement Your old 401(k) might make more sense...
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