It’s a great thing to have savings for the last part of your life, when you...
Day Trading and Intraday Tips for Beginners
Being a day trader can be a lucrative thing if...
- December 17, 2014
Tips for an Investing Newcomer and a Look at the Stock Market 2015-2016
Every investor is once a newbie and while there are...
- December 17, 2014
Is it possible to Rollover IRA to gold?
One of the most important things that you can do for yourself is to set up a retirement account. This account will build a little nest egg for when you decide to quit your job and enjoy the rest of your life. You may be relaxed and sitting pretty on a nice 401k and/or an IRA, but you’ve probably been hearing about the gold craze lately. Have you made a wrong decision to have a cash-based IRA?
The answer is no. You did not make a mistake in the original set-up of your IRA, and you made a great decision to get the type of retirement fund that costs you less in taxes. The pending question that’s on every IRA owner’s mind is if you can think about gold IRA Rollover. Luckily, you are able to!
This gold craze is not exactly new, but investors are now more than ever seeing it as a great investment opportunity. Gold is a precious commodity that is a natural resource and has only increased in value over the years. Think about it; it has survived and thrived through wars, the recession, the real estate bubble, and many other strains on the economy. It is currently being sold around $1,600, compared to just around $250 back in 2001! Who wouldn’t want to be a part of this action?
It’s a bit of a process, but it can be done, and it is relatively easy to do so. Since you already have an IRA account, you will need to open a second IRA account for the gold assets. All this takes is a bit of paperwork from your custodian (be sure that it is a trustworthy and reliable one, these people are handling your money after all!) and paying a few fees.
Speaking of custodians, you are going to have to find one that actually deals with and specializes in gold. Some custodians (like the one you originally went to for your first IRA) may not handle gold. Now, these custodians charge fees, as you know, so be sure to check out your custodian’s types of fees and also fee schedules. Some of them charge an annual fee, while others may charge just a fee per transaction.
It is often a good idea to make sure that the account is self-directed, which gives you the most control over your account. After you have created your second IRA, you must deposit money into this account. This money is how your custodian will be able to invest in gold for you. You tell your custodian what exactly you want to purchase, whether it is gold, silver, bricks, or coins.
One popular question is if you can put gold coins that you already own into your gold IRA account. Unfortunately, there are rules and regulations by the IRS that prohibit this.
So the answer to the impending question of switching to a gold IRA is yes. It is fairly easily done; it’s just a bit of a process. Now, one thing to keep in mind is not switching all of your investments to gold. In fact, having two IRA accounts is greatly beneficial to you. You will still gain interest from the cash in the initial account, while simultaneously making an investment that will earn you thousands of more dollars in the second account.