Gold is an effective and simple way to diversify a retirement portfolio. Gold can be a balancing asset to smooth out risk, especially over the long term, and protect against inflation, making it a smart choice for retirement investments. Establishing a self-directed IRA with gold is easy, but it's important to understand the differences between a self-directed IRA with gold and a traditional IRA.
Most retirement funds are held in a conventional IRA, TSP or 401(k) and typically include stocks, mutual funds, bonds, and annuities. Physical gold and other precious metals may be held in a self-directed IRA. With a self-directed IRA, the investor is empowered to make his or her own investment decisions from a wider range of products, including precious metals.
Often called a Gold IRA or Gold Backed IRA, a self-directed IRA with gold provides the opportunity to buy gold coins and bullion and other precious metals. There are many gold, platinum, silver and palladium coins and bars that can be invested in a Gold IRA, but not all precious metals products are eligible. To be included in a Gold IRA, each precious metal or gold coin and bar must meet specific fineness or purity requirements as stated by the IRS. This ensures the investment will leverage the tax benefits an IRA provides.
The investor wanting to add physical gold and precious metals to their retirement account simply establishes a new account with a custodian (Goldline can assist in identifying a custodian, upon request).
Once the account is established, the account is funded with a transfer from an IRA or a rollover from a qualified retirement plan, such as 401(k), 401(a), 403(b), 457, Thrift Savings Plan (TSP) or annuity. The transferred funds are then used to purchase your gold and precious metals for your self-directed IRA.
The precious metals you purchase for your self-directed IRA must be held in the custody of an IRS approved custodian that is in charge of administering your IRA and stored in a licensed, insured depository. Your self-directed IRA gold and precious metals will be moved to a designated depository administered by your custodian.
Selecting a gold dealer for your IRA purchases is an important decision. Here are factors to consider when choosing a gold dealer:
Diversify your retirement portfolio with gold to help protect your hard-earned assets against market volatility and inflation.
For more information on the benefits of gold and precious metals as part of your retirement savings, please read Gold for Retirement.