Gold IRA Investing- Is it Right for You?

by Josh Biggs in Finance on 7th June 2021

Investing in gold is safe because it’s not affected if the stock market comes into a crash or if there is inflation. Believe it or not, the value of gold coins goes up when the stock market is doing bad and that is the main reason why investors are interested in this precious metal. Imagine your retirement account (IRA) would have the same benefit as gold when the stock market goes down, or inflation occurs. As a matter of fact, that can happen! A couple of years ago, IRA’s began approving bullion and still does so today.

2 Reasons why you should get a gold IRA

  1. It’s a safe way to protect the investor from losing money. When inflation or a stock market crash occurs and the value of the dollar goes up, gold is not affected in any way. It’s still an asset that’s very valuable and will forever be valuable because it’s so rare. If there is a crash in the stock market, you will have no other choice than to take all your funds out from your savings and lose money in your IRA. If you decide to invest with one of many gold IRA companies, that situation wouldn’t occur because gold will always be valued. Believe it or not, when the stock market goes down, the gold market rises. That is the best time to invest in metals. If a crash occurs before you retire and you have a gold IRA, that will be worth a lot more than paper money.
  2. Diversity. This is highly recommended by any financial coordinator. Always keep your options open when it comes to investing. You don’t want to just focus on one investment and put your whole life into that because if something happens and it loses value, then you will be pretty much losing it all. If you already have stock, adding a gold IRA to your selections can give you different benefits and income.

Are rollovers accepted when you have different IRAs?

You can roll over your IRA either directly or indirectly. By you choosing the direct choice, then that means the person who is responsible for looking over your IRA’s will go from person to person getting to your gold IRA broker. You don’t have to do anything by choosing the direct method. If you decide to go indirect, then that means your broker will send you a check of either all or a certain amount of your IRA and you would have to then send it to your gold IRA person that’s in charge. You have to make sure you get this done in a timely manner, no more than 2 months because if not then you can get penalized by the IRS.

You also have two other options if you want to receive your distributions which can be by requesting your bullion in hand or the person in charge of your gold liquidizes it and sends you the funds for it. When it comes to your retirement plan, whatever amount you decide to take out, you’d have to pay taxes for that. A great benefit about the gold Roth IRA is that you wouldn’t have to pay any taxes if you decide to withdraw. If you do have the gold IRA, not Roth, then the same directions apply as if you were to take money out from your retirement plan. Before jumping into investing in gold IRA, make sure you do your research and see how it’s been going for other investors. If this is something you want to pursue, keep in mind that there are many similarities to the normal IRA as well as differences.

Categories: Finance