Suppose you are looking to diversify your portfolio, save for retirement, and leverage the stability and value of gold and other precious materials. In that case, gold IRAs could be a good choice. These specialized Individual Retirement Accounts are for non-traditional investments such as gold, silver, and real estate.
Are you short on cash? A new gold IRA can be funded easily with money from existing retirement accounts such as 401ks and Roth IRAs. This guide will show you how it works.
What’s A Transfer?
Two ways to use retirement accounts to fund a Gold IRA are:
- A rollover
- Transfer
Your existing IRA custodian will provide you with the money you want to withdraw. You’ll then have 60 days to deposit these funds into your new gold IRA. If you miss that deadline, you will be charged a 10% penalty for the withdrawal.
Your current IRA custodian transfers the money to your gold IRA Custodian. No cash is taken from the account. This method is preferred because it doesn’t involve any dealing with the money and you don’t have to miss that 60-day window.
How Do I Open A Gold IRA?
You will need to find company that specializes in these types of accounts to open a gold IRA. After you have completed the paperwork and opened an account, you will need to fund it, select the gold or other metals that you wish to invest in (only a few are eligible per IRS rules), then tell your custodian to buy the metals for you. Your investments will be moved to secure storage once the purchase is complete.
How Do You Transfer Your IRA To A Gold IRA?
Transferring funds from an existing IRA account to your new account is easy once you have opened it.
Here’s how it looks:
- Contact your existing IRA administrator. Let them know, you would like to initiate a transfer.
- Complete the necessary paperwork. Enter the information about your new account and how much money you wish to transfer.
- Wait for the account administrator to wire funds to your gold IRA. Then you can start buying gold and other eligible precious metals.
- Select the gold you wish to purchase. You can only buy certain coins and other metals.
- You can direct your gold IRA account custodian for the purchase. They will use your funds to buy the metals you choose.
- Your metals are shipped to a secure storage facility for safekeeping. This could expose you to IRS penalties.
Why Do You Want To Transfer Your IRA To A Gold IRA?
There are many benefits to Rollover IRA to Gold. These benefits include:
A Diverse Portfolio: It is risky to invest all of your funds in one asset or investment. You can diversify your portfolio by investing in gold and silver, which will reduce the risk of your portfolio.
Inflation Protection: Your purchasing power drops when the U.S. Dollar falls. Because it is generally more valuable than the dollar, gold investments can protect you from this loss.
Economic Security: If you are concerned about the economic or stock market in which your funds are invested, investing your money in gold could help to reduce your losses.
A Chance For Growth: Gold may grow in value (Gold prices have risen in the past ten years). Your portfolio will also increase in value if the trend continues.
