A gold IRA is an individual retirement account that holds physical gold assets instead of stocks, bonds or mutual funds. It’s a type of self-directed IRA that gives investors more control over their investments.
A gold IRA is also known as a self-directed IRA or a “Precious Metals IRA.” The term “gold” refers to the precious metals that can be held in this type of account, which include platinum and palladium as well as gold coins and bullion bars.
A gold IRA can be opened with any major bank or brokerage firm. Some financial institutions also offer online platforms for investors who want to buy and sell precious metals from their accounts.
A gold IRA offers investors many benefits. It’s a good way to preserve wealth during times of economic uncertainty, as the value of precious metals tends to rise when other investments fall. It can also be used as an investment vehicle for retirement funds that are subject to taxes at withdrawal (such as a Roth IRA).
It’s also a way to diversify your portfolio. Some investors use gold IRAs as part of a strategy to hedge against inflation, which can erode the value of paper investments over time. Others use them as an alternative investment that can increase in value during times when stocks are falling.
Gold IRA investments can be a smart way to protect your retirement savings from inflation.
Gold IRA Rollover
If you have a traditional IRA and want to transfer it into a gold-based account, you’ll have to complete what’s known as a “trustee-to-trustee” rollover. This means that the custodian of your existing IRA will send all assets and accounts directly to the new custodian without ever touching them. However, if you’re transferring an existing self-directed IRA into one that allows precious metals investments (as opposed to using only stocks or mutual funds), you may be able to avoid this step by simply changing the investment mix within your current account.
Gold IRA investments should be made through custodians who specialize in self-directed IRAs. This is because they have the ability to set up precious metals accounts and provide you with access to a wide range of bullion options (such as gold coins, gold bars or even silver).
If you’re interested in getting into gold and silver as a way to diversify your investments, there are a number of ways to do so. One option is to open a self-directed IRA (or Solo 401(k) account for small business owners), which allows you to invest in precious metals alongside other assets. You can also invest in the traditional way through a broker or financial adviser, but that may not allow for the same flexibility or tax benefits.