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Gold Backed IRA Explained
There are a huge variety of retirement investment programs out there now, and having precious metals as an extra option when you take out an IRA means that you can get a nice diverse portfolio. Falling confidence in the global economy means that more and more people are looking at options such as physical precious metals, because of the stability and comparative safety of those options.
If you’re not familiar with these tax-advantaged investment options, it’s natural to want the gold-backed IRA explained to you. In essence, a gold-backed IRA is an IRA that is based on physical commodities instead of stocks or bonds. You can purchase IRS-approved gold, and have it recorded and stored by a custodian. You can acquire this gold either by paying for it with cash or by rolling over an old IRA account.
There is a list of “IRS approved gold, silver, palladium, and platinum that you can put into your IRA account“. For example, if you want a gold IRA then you can have it contain American Eagle coins, Canadian Maple Leaf Coins, Austrian Philharmonic coins, and a number of other coins, bars, and rounds. It’s a good idea to do your due diligence before investing, to make sure that what you buy is approved, and authentic.
Remember that gold is not the only physical asset that you can invest in. Silver, platinum, and palladium are all options as well. These are also traditional safe havens and therefore make an appealing investment option for people who are looking to save for retirement. In the event of a stock market crash, recession, or other economic issues, you can be confident that your physical assets will have held some value, especially in terms of relative purchasing power. The stock market and currency market, by comparison, is more readily liquid but is also more volatile and more affected by major global economic events.
Rolling Over an Existing IRA
You can rollover funds from your existing IRA into a self-directed IRA if you wish, and this is perhaps the easiest way to get a gold IRA set up. The existing retirement account will be converted into an IRA, which means that you will still enjoy the tax-deferred status for a standard IRA. There are options for Roth IRAs that are gold-backed as well. With a Roth IRA instead of deferring the tax payments, you are opting to pay them now and enjoy the tax-free status later.
For gold to qualify as a legal, secure investment it must pass certain rules regarding purity as well as eligibility. There is a growing number of companies that are offering assistance with gold IRAs these days, so it is easier than ever before to get a good investment. Check with the Better Business Bureau to find out if the company that you are thinking of working with is one that is stable, dependable, and has the expertise required to help you with your IRA.
Recap
This is a form of IRA specifically involving gold and not any other precious metal. Rather than using ordinary currencies such as the US dollar, an individual is allowed to do an investment using this precious metal. This is an act that is permitted by the federal regulations since gold is featured in the list of the federal government’s approved precious metals.
There are so many things that make gold-backed IRA more unique if compared with other forms of the investment plan. One great thing is that they are self-directed, which means that the account holder is given the freedom to make decisions based on the type of investment selected.
These decisions should not be against the legal regulations put in place by the federal government. Investments in a gold-backed IRA mean that the account bearer has to be aware of the cost of keeping the gold with a trusted custodian. The custodian charges are always between $100 and $200 dollars annually.
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