Getting a Gold IRA: Why Bother?
The economy of the world is based on gold. Even the most hardened Communist has a healthy respect for gold. Unlike real estate, stocks, bonds, fine art or even cash, gold will always be valuable and desirable to the vast majority of the human population. This is why it is worth opening a gold IRA.
It’s also known as a gold backed IRA and for good reason. You need to buy actual gold coins or bullion with part of your IRA funds. It’s best to have a self-directed IRA because this allows for the purchase of a wide variety of assets, including gold coins and bullion. If you are managing your own IRA, expect to take a lot of time working on it. If you cannot invest the time in a self-directed IRA, then that is not the IRA for you and getting a gold IRA rollover is out of the question.
Getting Started with a Self-directed IRA
You need to have a substantial chunk of change in order to open a gold IRA companies. You need to put in at least $1000. You will have to fill out paperwork. Although some places will allow you to fill out these forms online, many financial institutions prefer snail mail.
Check with your bank, brokerage firm or mutual fund company about limits on yearly deposits. If you deposit more than the allowed limit, you will wind up spending a fortune in taxes. Many people choose to roll over their employee retirement benefits like a 401(k) into a self-directed IRA.
Buying Gold
Now we come to the hard part – buying gold. You just can’t claim your Grandma’s gold earrings as part of your IRA. There is a very narrow definition for what the IRS will allow in a gold-backed IRA. For example, never buy gold proof coins from mints because you will be paying more than the gold is actually worth.
You need to buy gold from a precious metals and gold ira company that can sell you gold bullion or gold coins. You will need to spend plenty of online time researching each company. Check with the Better Business Bureau for complaints.
Storing Gold
Under IRS laws, you cannot keep the gold you buy in your home. It needs to be stored in a secure depository. Your IRA provider may have a special deal with a depositor. There are two types of gold storage – segregated (where your stuff is kept separately) and fungible (where it is kept with other people’s precious stuff.)
It’s also known as a gold backed IRA and for good reason. You need to buy actual gold coins or bullion with part of your IRA funds. It’s best to have a self-directed IRA because this allows for the purchase of a wide variety of assets, including gold coins and bullion. If you are managing your own IRA, expect to take a lot of time working on it. If you cannot invest the time in a self-directed IRA, then that is not the IRA for you and getting a gold IRA rollover is out of the question.
Getting Started with a Self-directed IRA
You need to have a substantial chunk of change in order to open a gold IRA companies. You need to put in at least $1000. You will have to fill out paperwork. Although some places will allow you to fill out these forms online, many financial institutions prefer snail mail.
Check with your bank, brokerage firm or mutual fund company about limits on yearly deposits. If you deposit more than the allowed limit, you will wind up spending a fortune in taxes. Many people choose to roll over their employee retirement benefits like a 401(k) into a self-directed IRA.
Buying Gold
Now we come to the hard part – buying gold. You just can’t claim your Grandma’s gold earrings as part of your IRA. There is a very narrow definition for what the IRS will allow in a gold-backed IRA. For example, never buy gold proof coins from mints because you will be paying more than the gold is actually worth.
You need to buy gold from a precious metals and gold ira company that can sell you gold bullion or gold coins. You will need to spend plenty of online time researching each company. Check with the Better Business Bureau for complaints.
Storing Gold
Under IRS laws, you cannot keep the gold you buy in your home. It needs to be stored in a secure depository. Your IRA provider may have a special deal with a depositor. There are two types of gold storage – segregated (where your stuff is kept separately) and fungible (where it is kept with other people’s precious stuff.)