IRA eligible gold investments have spent the last two decades skyrocketing in value and popularity. Precious metals have long been viewed as an incredibly unique investment vehicle. Historically, people turn to gold when cash based commodities decrease in value. This means that there is a strong, measurable and predictable correlation between an increase in the value of gold and a decrease in the value of cash based investments. This correlation can be utilized as a unique diversifier and a significant protection against market volatility. This added protection means that, no matter what the market is doing, there is always a portion of your investment that is growing. Many have learned the hard way that, without diversification, fluctuations in the market can wipe away many years of diligent savings.
Take advantage of smart investment techniques such as investing in IRA eligible gold to not only protect your retirement savings account, but to help it thrive.
What is an IRA?
An IRA, or Individual Retirement Account, is a type of retirement account that offers significant tax advantages, which can add up to hundreds of thousands of dollars worth of extra savings. IRAs can also be used as investment vehicles, the balance of which can be put into conventional investments such as stocks or in hard commodities such as gold.
There are two basic account types, traditional and Roth, which allow you to invest gold in an IRA, each with different tax benefits. A traditional IRA does not tax contributions until earnings are withdrawn after a retirement age is reached. This allows savings to grow at a faster rate, and is generally recommended for investors who expect to pay a lower tax rate when they retire. Roth IRA accounts, on the other hand, tax contributions right away, but allow savings to grow in a relatively tax free environment and can be withdrawn tax free after retirement age. This tax structure is generally recommended for those who expect their retirement tax rate to be higher than their current rate.
Many investors choose to invest in gold in an IRA with a Roth based tax system for the other additional flexibilities they offer. For example, with a traditional IRA account, minimum withdrawals are mandated after age 70 ½. Withdrawals are never required with Roth IRAs and can be bestowed as an inheritance. Some choose to invest in a Roth style IRA for this reason, using their retirement account as a low tax way to pass on accumulated wealth.
What is a Gold IRA?
Typically, a standard IRA is invested by the financial institution which acts as the IRA’s custodian, with the account owner making few actual investment decisions. To use a gold IRA, you will need to convert your IRA into a self directed IRA. Although you are still required to engage a third party gold brokerage custodian to invest gold in an IRA, this structure gives you far more freedom in choosing how your money is invested.
A gold IRA can exist as either a self directed Roth, or a self directed traditional IRA, a portion of which is invested in gold with the help of an IRS approved gold brokerage firm. While many financial professionals advise investing between five and 15 percent of your available funds in gold, a brokerage can help you invest any percentage you would like. The incredible growth in value of IRA eligible gold has exploded over the past two decades, rising to a current value of over five times its 2001 value of $271 an ounce. Many have taken advantage of this and seen massive growth in their retirement savings by investing a full 100 percent of their savings into precious metals.
Unlike many other investment models, a gold IRA grants you physical ownership over a specific set of gold and other precious metals. Your brokerage will oversee their purchase, storage and maintenance.
Types of Eligible Precious Metals
While gold remains the most popular metal investment, the IRS also permits IRA investment in silver, platinum and palladium bullion, as well as a vast assortment of precious metal coins, the historical significance of which may increase their value above their simple metal content. While American Gold Eagle coins are the only coins specifically approved by law as IRA eligible gold coins, other coins may also be eligible as long as they are at least 99.5 percent pure and are legal tender coins. This additional provisions allows the inclusion of coins such as Australian Kangoree or Nugget coins, Canadian Maple Leaf coins or Mexican Libertad coins, among many others.
Just as general diversification increases the vitality and responsiveness of your retirement account, investing in multiple kinds of precious metals is also a smart money move.
Using a High Quality Gold Brokerage to Invest in IRA Eligible Gold
Many gold brokerage firms of a wide range of quality have emerged to meet the ever growing demand for gold investment. A poorly run company will not work to maximize your savings and may be far more concerned with its own bottom line than your long term financial well being. it is critical to the continued health of your retirement savings that you choose to partner with a skilled, experienced investment firm that is able to provide you the best return on your hard earned investment.
High quality gold investment firms such as Regal Assets have been helping investors incorporate gold and other precious metals into their retirement accounts for nearly a decade. Top firms will be able to provide a wide variety of connections to various gold suppliers and distributors as well as storage facilities to best fit your needs. With a perfect A+ rating from the Better Business Bureau and a perfect score of AAA from the Business Consumer Alliance, another independant provider of online reviews, Regal Assets has been a cornerstone of the gold IRA industry for many years, and with the continued growth of popularity of gold in IRAs and a large, vocal group of satisfied customers, is likely to continue to dominate the IRA gold industry for many years to come.
Partnering with the right gold IRA brokerage can be an incredible way to secure and grow your retirement savings. Contact a well established firm such as Regal Assets to learn more about how you may benefit from this investment strategy.