What is a Self-Directed Gold IRA?
Self-directed gold IRAs allow retirement investors to hold physical precious metals in their accounts without incurring IRS penalty, provided it is kept at an approved depository instead of being kept personally in one’s possession.
Diversifying your portfolio beyond paper assets like stocks can help protect against inflation and economic instability. This strategy may also serve as an excellent hedge against economic uncertainty.
Investing in Precious Metals
Those who anticipate inflation and economic instability to rise should diversify their retirement portfolio with physical gold and silver holdings rather than paper assets like stocks and mutual funds. A self-directed precious metals IRA allows this.
These IRAs allow you to purchase precious metals directly and store them safely with an approved depository. While you could also invest in precious metals-themed mutual funds or ETFs, which won’t give you direct access to physical bullion purchases, an IRA gives you more control and allows you to acquire physical bullion at your discretion.
Addition of precious metals to your retirement portfolio can help lower risk, as these assets have near-zero correlation with stocks and bonds. But before making this investment decision on your own, consult a financial advisor in order to assess if this type of investment suits your unique personal and financial circumstances. This might involve discussing benefits/costs between opening a self-directed IRA for precious metals versus traditional IRA or other types of accounts for other investments.
Diversifying Your Assets
People who invest in precious metals typically seek to diversify beyond stocks and bonds. Gold and silver don’t directly correlate to stock markets, providing an alternative means of diversification during times of economic instability.
Establishing a self-directed gold IRA comes with its own set of unique challenges that may not suit all investors. Selling precious metals may take longer than selling paper assets like stocks and mutual funds.
Second, the IRS mandates retirees take an annual required minimum distribution (RMD). If any portion of your IRA holds physical metals, you may be forced to liquidate early or pay penalties to meet this RMD obligation. To mitigate these issues, select a custodian who offers storage at an approved depository; additionally you can limit how much bullion coins and bars you own by selecting products certified as bullion by independent third-party organizations like Money Metals Exchange.
Investing Tax-Deferred or Tax-Free
Are You Searching for Ways to Diversify Your Retirement Portfolio? Invest in Precious Metals
Self-directed gold IRAs provide you with an opportunity to invest in physical precious metals rather than traditional stocks and bonds, through working with an IRA custodian and precious metals dealer to purchase IRS-approved bullion that’s stored safely at an approved depository.
These investments should be seen as long-term plays and typically don’t yield as many tax benefits compared to more traditional IRAs, with additional fees often attached. It’s essential to choose an IRA custodian with transparent pricing and impartial customer education – we recommend New Direction Trust Company (NDTCO), one of the industry’s premier custodians!
Buying Physical Gold
When investing in gold, there are multiple methods available for investors who wish to own physical metal. Some investors choose direct dealer purchases while others use New Direction Trust Company (NDTCO), an IRA provider with over $3.7 billion of assets under management.
Investors should read customer reviews of a dealer prior to making any purchases, in order to identify any scammers or untrustworthy dealers and avoid scammers or unreliable dealers. Check for complaints with resources like Better Business Bureau and Trustpilot in order to identify these types of issues and potentially avoid making purchases that turn out badly.
Once an investor has found a dealer and selected an investment type of gold they wish to invest in, the next step should be selecting a custodian. When searching for custodians it is wise to seek one who specializes in self-directed IRAs as well as understands IRS rules regarding precious metals – with exceptional customer service capabilities including being able to answer your questions live web sessions, store metals in an IRS approved depository and answer all inquiries quickly and professionally.
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