A Gold IRA is a common way that people refer to a ‘precious metal IRA’. Gold, because it’s the most coveted and prized metal in this investment class. Precious metal IRAs include 3 other types of metals, Silver, Platinum and Palladium. So thats Gold, Silver, Platinum and Palladium. Let’s continue – a Gold IRA is similar to the well known traditional Individual Retirement Account (IRA) that enables you to save for retirement with the benefit of Internal Revenue Service (IRS) approved tax advantages. The biggest difference with a Gold IRA, as the name suggests, is that it allows physical Gold and other precious metals to be held in your retirement account, rather than just paper assets (stocks and bonds). Since you get to choose the precious metals, an alternative investment, it is considered a Self Directed IRA (SDIRA).
Why should I invest in a Gold IRA?
The biggest reason for a Gold IRA is because of the ability to ‘rollover’ your investable funds from your traditional 401k/IRA into physical Gold, TAX FREE.
You are probably here because you understand the timeless beauty and value of Gold. Likely, you are doing your due diligence before you commit to buying your precious metals – you want the most gold for your dollar. We don’t blame you, this makes perfect sense. It is very common for people to hold a large amount of investable funds in there 401k/IRAs (tax-free funds). There are also people who have large sums of investable cash sitting around to buy there Gold directly with (after-tax funds).
With your funds in a 401k or traditional IRA, you might not have any power to control how your funds are allocated. This is just how that system is setup. With a Self-directed IRA, you are taking back control of your investable funds and can choose which IRA approved Gold, Silver, Platinum or Palladium you want to invest in.
This is how a Gold IRA rollover empowers you.
You can add or rollover precious metals directly into a Gold IRA. This is ideal for the first time investor or investors with Roth IRAs, SEP IRA, SIMPLE IRA, HSA, Thrift Savings Plan (TSP), and 401(k)s. These retirement accounts historically included a mix of bonds, stocks, and dollar backed assets such as U.S. Treasury Bills and mortgage-backed securities. With a Gold IRA, investors can benefit from the security and tax benefits of an IRA backed by physical, tangible Gold. You are taking your investable funds, and putting them into something that is considered a safe-haven asset in times of economic turmoil and political unrest.
A Gold IRA has become a smart way for investors like you to protect their retirement with diversification of assets – countering the effects of inflation of the dollar and their retirement nest egg.