Why do we invest? To earn the money, we require to live the way we want and for as long as we want. Ultimately most people’s goal when it comes to investing in financial reassurance. No one ever wants to be in debt or struggle to get by. Investments can give people the opportunity to have fuller and richer life by bringing in extra money for those involved.
Personally, despite the fact that I have a long way to go before I reach retirement age, my goal is to prepare as much as I can for the eventuality. I know there’s going to come a time in my life when I can’t work or no longer wish to. And why shouldn’t I get to that point? We all deserve to live our golden years the way we want to.
While most of us have heard of 401k plans and IRA plans, you may not have heard of a Gold IRA. Gold is something that many investors have been trying to get into because of the benefits it gives their portfolio. Gold is a great commodity investment since it adds diversification and a hedge against inflation.
Investing in a gold IRA plan is a great way for you to invest in your retirement but there is a lot of information you’re going to need to know before you make your investment. The more information you have, the easier it will be for you when the time comes to invest. Let’s look at the basics of a Gold IRA to see if it’s something worth pursuing you.
Gold IRA is…
A type of individual retirement account that allows you to own gold instead of cash. If you want to own physical gold, a regular IRA won’t let you do that. You can only invest in stocks or ETFs that deal with gold. With a self-directed IRA, you can invest in precious metals, such as gold, so you can grow your investment and diversify your portfolio the way you want to.
Who Can Help You Open a Gold IRA?
If you’re looking to use your local bank think again. Most brokerage firms that you know about don’t offer gold IRAs. If you find a custodian that specializes in gold IRAs then you’ll have someone helping you every step of the way. The IRS has strict rules and regulations for a regular IRA and the same can be said for a gold IRA.
A custodian will help you manage your gold IRA and help you open your own gold IRA. If you’re interested in getting help opening your own gold IRA, you can copy and paste this URL into your browser to learn more. https://goldco.com/precious-metals-ira/gold-ira/
How Does This Work?
It’s simple. Once your custodian helps you open your own Gold IRA, you’ll put cash into the account. You’ll then use that cash to purchase gold bullion that can go into your account. You should be aware that a gold IRA has the same rules as a regular, conventional IRA.
What I mean is you can’t withdraw from your account before it matures and there will be penalties and fees that will have to be paid yearly depending on how you use your gold IRA. You should also know that only certain kinds of gold can be placed within the account. IRS-approved gold bullion bars and coins are acceptable. If you’re not sure what is or isn’t acceptable, be sure to talk to your custodian as they can help you navigate this.
Can I Store My Gold at Home?
Remember what I said about a gold IRA resembling a traditional IRA in rules and regulations? Well, you can’t store the cash you place into your IRA at home. That means you can’t store your gold at home, even if you have a safe protecting it.
The IRS will consider it a withdrawal from your IRA account if you house your gold at home and that will mean significant tax implications and withdrawal penalties. Depending on the case, the IRS will close your account completely.
You can store your gold at a number of places. You can keep it in a national depository, bank, or trustee that’s been approved by the IRS. That way you can avoid those pesky penalties or fees. If you’re not sure about where you should store your gold, talk with your custodian. They have the experience you lack so they can help you with this.
Know the Signs of a Scam
Precious metals, especially gold tend to attract crazies. You’ll find that once you start looking into investing in gold, there’s going to be a lot of people looking to help you do business. And while that might seem great, not all of them have the best intentions.
While there are laws against predatory lending and investing, you still shouldn’t put your guard down. There are lots of people willing to risk jail in order to earn some extra money. Many of which have made a career out of these scams. That’s why it’s so important to make sure that you check out each and every person you come across. Vet your custodian, your dealer, and everyone involved in the investment before money or paperwork is exchanged.
Signs of a scam include:
- An aggressive salesperson
- Changing stories
- Changing phone numbers or emails
- Unlisted business or no prior history
- Negative online reviews claiming a scam
- Prior lawsuits and criminal history
Don’t let yourself get scammed. Make sure the person you speak to about the gold you want to purchase is who they say they are. Do your research and take your time. Don’t go into business before doing your due diligence.
Gold IRA accounts can be a great way for you to save money for retirement. As long as you take the time to do your research and find a custodian who can keep you from receiving penalties and fees, you’ll be on track to save enough for retirement!