Setting Up Your IRA to Gold
When you first set up your gold IRA, there are a few steps to set everything up.
Step #1: Sign up for your free gold kit.
Step #2: You will be contacted via phone to discuss setting up the account. You will be walked through the entire process so it can be as easy as possible for you!
Step #3: Making the decision on how much to invest. You can either transfer your entire IRA into gold or a portion. It is entirely up to you! Once you decide, you will transfer the amount you want to your gold IRA and voila! you have your very own gold.
Once you have gone through this process, you will have your very own gold IRA account. Once you retire, you will be able to sell the gold and retire happily.
Saving for Retirement is an Absolute Must!
If you're saving for retirement, then good for you: you're already one step ahead of the game. But how would you like to be a mile ahead of the game? It's possible: with a Gold IRA. More about that later, but for the time being let's see why you should know about this important retirement strategy, and what could be wrong with your current retirement savings plan.
Why IRAs are Important
If you are already saving for retirement, more than likely you've set up an IRA (Individual Retirement Account) and you're contributing to it regularly. Or if you're lucky, your employer has a 401(k) program and money is taken out of your salary, pre-tax. Even if you have a 401(K), however, it's good to also have an IRA that you control and which gives you more freedom to invest any way you like.
Either way, you're investing in the stock market...you knew that. Most tax-favored retirement savings vehicles are collections of mutual funds, managed by financial companies who do their best to beat the market for their clients. Over time, this is commonly known to be a safe way to invest your money for retirement. Chances are, and history shows that in the long term, the stock market will grant you some solid returns. Solid, but not spectacular.
The Stock Market Can be Scary
Besides, how do you feel about the stock market these days? If you're like anyone else who's been in the game for a few years, you're not thrilled about the risks involved. You've seen what can happen to stocks ...and it can happen almost overnight! Unfortunately, the risks became very real a few years ago when the stock market fell dramatically and people everywhere lost lots
of money. It was a scary time for investors.
The Problem With Being Too Safe With Your Money
So no wonder you may be a little wary of owning stocks. What else can you do, though? Keeping your retirement in a savings account is laughable. With less than .5% interest you'd be losing money over time because of inflation. Same goes for fixed-income investments: returns so small it's not even worth it.
One thing you want to keep in mind the balance between risk and safety. Sure, keeping your nest egg in a "safe" place like an annuity or a money market account protects you from the dangers of the plummeting stock market. However, it's pretty safe to say that you're missing out on seeing the full potential of your money. That's not the worst, either. When you finally retire, what seemed like a lot of money all those years will now be worth way less...because of inflation. Yes, it's actually possible to be too safe with your nest egg. You will basically be preserving it to death, watching it dwindle year by year as rising inflation takes a chunk out each year.
So you need to find an investment that acts as a hedge against inflation. One that will prevent your savings from being eaten away over the years. Some savvy investors are able to swing this by making prudent real estate purchases. But not everyone is equipped for this kind of investing. First of all, it's risky if you don't have lots of experience and you don't know what you're doing. In fact, it can be just as risky as the stock market.
Gold: The Happy Middle Ground Between Safety and Risk
So...what can you do? What you want to do is find something that is safe yet which also promises a nice return. Something that has value no matter what the stock market is doing, no matter how tumultuous Wall Street becomes. Something like...gold.
Precious metals are an appealing investment because they will hold their value. Gold will always have intrinsic value...it's gold! Gold will never crash to zero in the stock market. It may fluctuate, but it will not see the drastic crashes that stocks are always at risk of suffering. Gold always has and always will have a very high value. If you own a gold bar then you can rest assured that you've got an excellent hedge against inflation. You can buy gold through a Gold IRA.
How to Invest in Gold Through an IRA
Most traditional financial companies can't or won't handle Gold IRAs. They prefer to stick to stocks, mutual funds and bonds. That's because it's all on paper and management is routine. When you buy a gold IRA, on the other hand, you're actually buying gold!
Now, there are laws that say when you buy gold through your IRA a "custodian" must hold the gold. Those gold bars you're buying: they will actually be physically transferred to a depository and stored in your name.
You'll need a company that specializes in managing IRAs with alternative investments like real estate, oil and precious metals like gold. Such IRAs are called self-directed IRAs.
Find a Self-Directed IRA Manager
The big financial companies who mange most stock-based IRAs don't offer Self-Directed IRAs. You'll have to find a trustee who can manage the transfer of the gold, payment to the gold dealer, and storage/insurance of your gold. There are only a few out there. Most of them will have your gold transferred to the Delaware Depository Service Company. Here's what you're looking at as far as getting started with a Gold IRA:
- There will be a fee to set up your Gold IRA, but typically that's a one-time fee.
- As with any IRA, there will be an annual fee for managing the account- this includes producing statements, sending reports to the IRA, and/or running a website where you can log in and view your account.
- There's an annual fee for storing your gold.
- There's a fee for insuring your gold.
You can roll over your current IRA into a Self-Directed Gold IRA, or you can start a totally new one and keep your current traditional stock and bond-based IRA. It's possible to own more than one IRA. You can also convert your old 401(k) from a past job into a Gold IRA. Same goes for other employer-based retirement plans from old jobs: 403B), 457(b), or a pension plan. You can even roll over an annuity into a Self-Directed Gold IRA.
However you choose to invest in a Gold IRA, consider your options wisely, ask the right questions and make sure you inquire about the fee structure. Investing in a Gold IRA can pave the way for an even brighter future.