Gold IRAs may have their advantages, but these accounts also have drawbacks. Gold IRAs appeal to investors who want a diversified retirement portfolio. Gold IRAs can diversify your retirement portfolio and provide inflation protection. Just make sure you follow IRS guidelines when you open a Gold IRA.
A gold IRA company usually has an order desk that can help you select gold (or other precious metals) that fit your investment strategy — or at least shed some light on the gold products most commonly ordered by retirement savers. A certified financial planner may be able to give you workable suggestions on how to best incorporate a gold IRA into your strategy and plan, but the final decision is up to you. For a gold IRA, you need a broker to buy the gold and a custodian to create and manage the account. During his tenure as Director of the Mint, there was little demand for gold IRAs, according to Moy, as it is a very complicated transaction that only the most stubborn investor was willing to make.
Remember that not every self-governing IRA custodian bank offers the same investment options. So make sure that physical gold is among their offerings before you open an account. You’ll also need to choose a precious metals dealer who will make the actual gold purchases for your IRA (your custodian may be able to recommend one for you). It’s not too complicated, but setting up a Gold IRA account requires a few key steps. These investments are available in a normal brokerage IRA, which means you don’t have to go through the work and additional costs of setting up a self-directed gold IRA.
The real benefit of a gold IRA is combining the benefits of precious metals yourself listed above with the additional benefits that an IRA can bring. Your custodian bank can refer you to an approved institution and process the gold transfer as part of setting up your Gold IRA. There are a few things you should consider before you decide to convert your savings into a gold IRA. Still, many people have decided that a gold IRA is an important part of their plan to retire as planned, and when you examine the benefits of this attractive tangible asset, it’s easy to see why.
Buying a gold IRA should be part of your comprehensive financial strategy for retirement (or outside of a retirement account), which you’ve carefully formulated yourself with the help of your own financial professionals. Before you open a gold IRA, keep in mind that it’s not the only way to invest in gold with your retirement funds. The rules for withdrawing from a Gold IRA are similar to other individual retirement accounts. A good Gold IRA company will help you sort out the paperwork and stay on board to be available to you as a personal resource even after your purchase (known as a “trade”) is complete.