Top 5 Gold Investing Facts For Your IRA
When it comes to planning for your retirement, you have many options. One safe retirement vehicle is the IRA or Individual Retirement Account. There are now IRAs that allow you to invest in physical gold.
1. Gold is a Stable Investment
Gold investing facts are the reasons more and more people want to invest part of retirement fund in gold. Gold is an excellent hedge against inflation and deflation. As the prices of stocks and bonds fluctuate, the price of gold remains stable as it increases in value.
Also gold is a precious metal that is in short supply. At the same time, demand for gold continues to increase due to its many uses. This makes gold a good long-term investment.
2. Invest in Gold through Self-Directed IRAs
The IRS (internal Revenue Service) set up IRAs as a way to help people save money for retirement. Since the advent of the traditional IRA, the IRS has approved other types of IRAs and more investment options that are suitable for IRAs.
The self-directed IRA is one of the most flexible IRAs available. It allows people to choose various types of investments for the IRA. A self-directed IRA is the only IRA that allows physical gold as an investment.
3. Finding Gold Investment Companies
You can set up an IRA at banks, trust companies, brokerage houses and other financial institutions. However, if you want to set up a gold IRA, you have fewer options. Not all banks or brokerages want to handle physical gold. The best way to find financial institutions that meet your needs is to read gold IRA reviews,
4. Types of Acceptable Gold
Gold comes in many forms for investment. There are gold coins, gold bars, and gold bullion. There are also various purity levels. For a gold IRA, the IRS only allows gold bars and gold coins that are 24 karats and have a purity of .9999. One gold coin exception is the US Gold Eager coin which is 22 karats.
5. Storage of Physical Gold
According to IRS rules, you can’t have possession of your gold. With a gold IRA, the contents has to be stored in a depository. Gold IRA custodians are responsible for the storage, security and administration of the gold.
Also the depository holds the gold of many account holders. When you are ready to sell some of your gold, you probably won’t get the same gold that you purchased. Instead, you will get gold of equivalent value. If you want to sell only the gold you actually purchased, you have to ask for a segregated storage.
A gold IRA is a good way to save money for the future without worrying about your portfolio losing much (or any) of its value. Unlike other IRA investments that earn an income over the years, with gold, you only make money when you sell the gold for a higher price than the purchase price. Still, with so many other benefits. A gold IRA is a good choice for many people.