After becoming tired of the volatility associated with traditional individual retirement accounts (IRAs), you might have decided to explore your options around precious metals IRAs. These retirement accounts give you the freedom and flexibility to look at alternative investment options that traditional IRAs don’t provide.
However, investing with a gold IRA company can require a different approach than what you may have anticipated. If you need a helping hand to invest in precious metals, you might like to take some of the following steps.
Choose a Gold IRA Company You Can Trust
When you decide to purchase gold bullion, home storage gold IRA options might be something you look at. After all, storing your gold in your own home as you would your precious jewelry seems like a natural decision.
However, when you invest in gold, you have to work with a self-directed IRA custodian to direct your IRA-eligible assets, handle IRA compliance, and remain within IRS tax laws. While many people consider becoming a custodian themselves and still opting for home storage, most governing bodies and the Industry Council for Tangible Assets advise against it.
When you’re trying to find the best gold IRA company to look after your gold, pay attention to the level of customer service and assistance they provide and their service charges.
Choose Your Funding Option
After opening your self-directed individual account with a gold IRA company, you can now look at your investment funding options. There are three options to consider: contribution, rollover, and transfer.
A contribution describes non-tax-favored funds with the cash you’ve earned, check, or bank transfer, while rollover describes distributing funds from your traditional IRA into your gold IRA. If you opted for transfer, you would be moving money from one account into another, which might require filling out forms with your custodian.
Purchase Precious Metals
After funding your account, you can now start purchasing IRS-approved precious metals like gold, silver, platinum, and palladium. Many people with precious metal IRAs buy their precious metals from the company they hold an account with, but this is only possible if that company sells IRS-approved metals. Alternatively, you can look at third parties like precious metal dealers in your area.
Monitor the Performance
When you have traditional IRAs, you typically monitor the performance of your stocks, bonds, and other standard investment options. While gold IRAs can differ in many ways, the need to monitor them remains the same. Depending on the company you invest with, you might be able to use an online dashboard to receive performance updates. Otherwise, the company might provide you with regular information for you to make informed choices about investing more or liquidating what you have.
Why Invest in Gold?
Investing in gold for your retirement can be a daunting prospect, especially when you learn that you can’t just buy it and keep it safe at home. However, it might be a worthwhile avenue to explore when you realize that it might diversify your portfolio, hedge against inflation, and typically increase in value during economic uncertainty.
If you’ve been considering alternative options to traditional IRAs, now might be the right time to look at precious metals. You might be surprised at how easy and potentially lucrative it can be to invest with a gold IRA company.