How Can I Convert IRA-To-Gold In 3 Easy Steps?
An IRA is one of the greatest incentives to save for retirement as it is shielded from tax. As long as the money remains in my IRA, it cannot be taxed. It also provides me with great investment opportunities as the IRA allows funds to be rolled over into a self-directed IRA account once a year.
A self-directed IRA account or 401(k), basically allows me greater freedom in selecting my own investment options such as stocks and bonds or precious metals. Investing in precious metals like gold and silver is one of the most popular options and provides a high ROI (return on investment). So how can I convert IRA-to-gold quickly and conveniently?
The first step is to roll over my money from my regular IRA account to a self-directed account. This can be a very complicated process that can take time to complete. Keeping in mind that the IRA will only allow the transfer to go ahead tax and penalty-free if the funds arrive in the self-directed account within 60 days, it is highly recommended to use an IRA custodian.
An IRA custodian is normally a bank or other financial institution where your IRA account is held. A custodian may also be referred to as a trustee and is normally the bank or other financial institution holding the IRA account. The custodian needs to be licensed by the IRS and is also regulated by the IRS. My custodian will take care of the rollover on my behalf as quickly and conveniently as possible to ensure that no penalties are incurred.
Step 2 is to find a reputable dealer in gold bullion. There are a multitude of disreputable dealers out there who will either charge me more than the value of the precious metal, add on additional charges and fees or not provide me with the goods that I purchased. Gold from a reputable dealer is certain to be exactly what I purchased as far as purity etc, is concerned. A reputable dealer should be accredited.
The third and final step in how can I convert IRA-to-gold is to inform the custodian of my self-directed IRA to purchase the bullion. Note that this may be a different custodian than the one that handled my rollover if I decided to open the self-directed IRA account with another bank or financial institution.
The custodian will then issue a check to the reputable dealer in precious metals and will take receipt of the gold that I have purchased. The gold will be held in the custodian's depository. I will not be allowed to be in possession of my own bullion as there are too many risks involved. The custodian should provide insurance against the theft or loss of the gold held in their depository to protect me. Alternatively, they may deposit a gold certificate of ownership.
I may choose to buy coins, American Eagles, Maple Leafs or other types of gold other than bullion. These may appreciate in value a little faster than gold bullion, however, the difference is normally negligible.
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Opting for a gold IRA is always a good move by anyone who is not satisfied by his current retirement account. There are so many investments that allow you to have the same feeling as a person who owns physical gold and silver. This can be done by the IRAs that give you the freedom of choosing its bonds, funds, and stocks. Such a move is simpler as opposed to converting your IRA to physical gold. Literary involves so much paperwork and procedures that would call for patience on your side.
To find out more visit Goldco their free starter kit explains all.