Are You Buying a Gold IRA?
Learn In 5 Minutes These 5 Quick Tips
Before Buying Gold To Protect Your Retirement
Diversifying is Recommended by Investment Advisors
Ok, so you’re considering or perhaps decided to diversify your investments and put some money in gold. For years, people have invested in gold as protection from inflation and deflation. Many investment advisors recommend a mixture of stocks, bonds, real estate, precious metals, and other investments to protect an investor from a down-turn in any of these areas.
Bonus, you’re getting more than 5 things
that you should know before buying gold or silver for your IRA
Continue reading!
1) How much gold can I buy?
You calculate how much gold you can buy by dividing the amount of money you have to invest by the current price of gold on the market, also called the spot price.
Example:
Amount to invest: $10,000
Gold spot price: $1,700
$10,000 / $1,700 = 5.88 ➜ round down to 5. So, 5 ounces of gold!
2) How much does it cost to buy gold?
Aside from the cost of gold, the spot price, there are costs to manufacture, insure (when transporting and storing), and dealer margins. These costs are called the purchase premium. No reputable dealer offers gold at a discount off of its spot price – that is like someone selling you a $100 bill for $50! If the dealer discounts the spot price, then something is fishy, and you’d better run! A reputable dealer will specify the spot price and the purchase premium.
3) What kind of gold should I buy?
Gold comes in several forms like bars, coins, or rounds specifically for investors. Bullion coins are for investment, and numismatic coins are collectibles sold at a high price. Investors purchase gold in bullion coins, whereas collectors purchase numismatic coins.
4) How pure is the gold?
Fineness defines gold purity. The typical fineness for gold is 999.5 (99.95% pure gold) or better. This fineness number is stamped on the bar.
5) How do I know the gold is good?
Gold is refined and then made into bars, rounds, and coins. A refiner brands the bars with their name. You’ll want to purchase gold made by a reputable refiner. As of Sept 2021, there are 71 refineries on the LBMA list. Buying from unknown refineries increases your risk of encountering counterfeit bars or coins and may make it difficult to sell the gold in the future. Deal with a reputable company when setting up a gold or silver IRA.
6) Where do I store my gold?
For a precious metals IRA, you can’t store it at home – which wouldn’t be a good idea anyway! When you buy gold or silver for an IRA, it’s easiest to store with the facilities that the IRA company normally works with, but you can store it at another IRS-approved facility. By the way, the IRS requires gold or silver to be stored in an approved facility.
7) How long does it take to rollover an IRA to a gold IRA?
While no two situations are the same, in general, it takes about two weeks to complete a rollover from a traditional IRA to a gold IRA. It’s an easy 3 step process 1) sign the paperwork, 2) fund the account, and 3) purchase gold or silver.
8) When will I be eligible for IRA distributions from a gold IRA?
The IRS specifies that you must be 59 and a half before you can start penalty-free distributions for your gold or silver IRA.
Worried you will live longer than your retirement fund? Want to learn how to diversify with a gold IRA? Take the next step now
Learn more about adding a gold IRA or silver IRA to your retirement portfolio by clicking below!
