Affiliate Disclosure: The owners of this website may be paid to recommend the following companies: Goldco, Augusta Precious Metals, Noble Gold Investments, and Birch Gold. The content on this website, including any positive reviews of the mentioned companies, and other reviews, may not be neutral or independent.
If you have extra money you’d like to invest, a gold IRA can be an excellent way to preserve your wealth and give you the opportunity to diversify your portfolio. Setting up a gold IRA can seem overwhelming at first, but the process doesn’t have to be difficult once you understand the steps involved. This article will help you determine if a gold IRA makes sense for your investing strategy and walk you through how to set up one from start to finish.
What is a Gold IRA?
People use gold to protect their investments from inflation and other factors. Many see it as an alternative investment in times of trouble, such as when stocks and bonds go tumbling. When you set up a gold IRA, you make deposits into that account for long-term investing. It is separate from your normal retirement account and has certain tax benefits for long-term capital gains tax rates on items purchased through an individual retirement account (IRA). To learn more about setting up a gold IRA or opening another type of IRA, talk to your financial advisor or accountant. Remember that any money you put into an investment should be money you don’t need access to immediately.
When you set up a gold IRA, you choose how to invest your money. You’ll be able to buy and sell gold from almost any financial institution that offers IRAs. However, when you set up your account with them, it will be under their rules and regulations. If you are buying gold from another source through your self-directed gold IRA, then make sure it is exempt from SEC regulation under Section 408(m) of Title II of UIGEA or Reg D for precious metals as described in IRS code IRC 408(m)(3)(C).
When setting up a gold-backed IRA, consider also setting aside some funds in an emergency fund.
Another thing to consider is whether you will take delivery of your gold or have it stored for you. If you choose to store it, then it should be at a vault that specializes in precious metals. Make sure that any depository where you keep your gold is FDIC insured and that they have never lost any client holdings through storage failure. If there was ever an emergency, would they be able to secure your precious metals? Does their insurance cover clients’ holdings against theft or destruction? You’ll want answers to these questions before considering storing your precious metals with anyone other than yourself.
Setting up a Gold IRA
Are You Eligible for a Gold Retirement Account?
What makes gold and other precious metals so attractive is their stability. In a world where we need constant access to information, there’s nothing more comforting than being able to pull out your phone at any moment, look something up, and know that it hasn’t changed in seconds. There are also no transaction fees on these accounts, but you must keep them open for five years before withdrawing money. If you think you could benefit from these tax-advantaged accounts but aren’t sure how they work, get in touch with a financial advisor who can help you set one up today.
Are you eligible for one of these accounts? To set one up, you must first confirm that you meet all of these criteria: Are 18 years or older. Are a U.S. citizen or permanent resident Have $5,000 to invest Have net assets of at least $1,000, not including your home.
Top Gold IRA Companies
Our recommended Providers are researched and vetted by us and many top consumer organizations. This is the short list of the most consistent companies we could come up with. Request information from them below.
#1: Augusta Precious Metals
Our Rating: 10/10
✅ ZERO complaints with the BBB and BCA
✅ Highest reputation and customer satisfaction in the industry
✅ Non-commissioned sales team
✅ Transparent pricing with up to 10 years of fees waved – with certain minimum investments
✅ NFL Legend Joe Montana actual customer before becoming their spokesperson
❌ No way to setup online
❌ The minimum investment for IRA is $50,000
Our Rating: 9.9/10
✅ Low annual fees on IRAs
✅ Excellent Customer Service
✅ Free storage is available for non-IRA precious metals
✅ Highest levels of customer satisfaction in the industry
✅ Incentives available for certain purchase levels
❌ Signup process can only be done through a specific link
❌ Setup online not possible
❌ Minimum investment for IRA $25,000
#3: Birch Gold Group
Our Rating: 9.9/10
✅ Great company commitment to education and communication
✅ Impeccable customer service
✅ Silver, gold, platinum and palladium available
❌ Signup process can only be done thought a specific link
❌ Certain fees are not disclosed up front
❌ No buyback guarantee of precious metals
#4: Noble Gold Investments
Our Rating: 9.6/10
✅ One of the best no questions asked buyback programs in the industry
✅ Free delivery of your precious metals to your door at any time
✅ Over 20 years of experience in the precious metals industry
✅ Gold, silver, platinum, and palladium available
✅ One of the lowest barriers to entry – ideal for smaller investors
❌ High annual fees for low balances
What are the Advantages of Investing in a Gold Retirement Account?
The US government made sure that investment in gold was a simple process. All you need to do is select a precious metals dealer to work with and set your assets up accordingly. If you are looking for secure investments into retirement, setting up a gold IRA is something that could really benefit you in multiple ways: Guaranteed return: No matter what happens in your life or market, you will have some sort of guaranteed return on your investment. You are never going to lose money because markets go down while commodities like gold always increase over time with high demand by investors as well as central banks.
This is why it’s also referred to as an inflation hedge. Diversification: Investing in commodities will diversify your portfolio and reduce overall risk. It’s especially useful if you are concerned about the bubble in government bonds or stocks, as well as currencies that can be devalued by central banks. Security: The value of commodities like gold are not affected by various geopolitical factors that could impact other investments like bonds and currency markets. Low commissions: Commissions on precious metals accounts tend to be very low, typically between 0-2% depending on your choice of custodian. This makes them comparable to investing in mutual funds or ETFs which charge significantly higher fees per trade.
Setting Up a Gold IRA
Is There an Age Limit?
To set up a gold IRA, you must be at least 18 years old. At that age, you can have and contribute to an Individual Retirement Account (IRA). In order to buy precious metals for your account, however, you must have a Trustee Custodian. So if someone set one up for you prior to your turning 18, then it may still be possible to add gold or other precious metals to your investment portfolio. Or ask your parents what they set up and ask them if they would like to change things around so that they can include some precious metals in their own retirement plans!
If you want to start a gold IRA, it may be worth speaking with a financial planner or your accountant to make sure that setting one up makes sense. It’s also essential to get your account set up and operational as soon as possible so that you can start adding gold and other precious metals before it’s too late! Once you have your investment portfolio all set, please let us know how you’re doing by leaving a comment below. We would love to hear from our readers! If you have any questions, don’t hesitate to ask them in the comments below! Remember: This is not financial advice; please always consult with someone qualified before starting an account or buying any precious metals for your investment portfolio.
How Much Can I Invest in my Retirement Account?
If you want to set up a gold IRA, you can buy as much or as little as you’d like. If you want to start investing $10,000 into your account, it’s not an issue at all. However, if $10,000 is too much money for you to invest right now, that’s okay; many financial institutions will allow investors to put smaller amounts in their accounts on a monthly basis.
For many investors, their accounts will represent a large portion of their wealth, so it’s important to take some time and educate yourself on what you’re getting into. Understanding how it works, why you should set one up, and knowing how much you can invest all go toward starting off on the right foot. Make sure that if you are setting up your gold IRA with someone else, they have as clear an understanding of retirement investing as possible. This way there won’t be any confusion later on when it comes time to make investments in your account.
Regardless of your financial situation, setting up a gold IRA account is an investment in yourself and your future. By planning for retirement early on, you are giving yourself more time to grow your money and save for later. Setting up an account like gold or silver can give you peace of mind that even if things don’t go as planned in life, you will still have something saved up for you once retirement comes around. These accounts aren’t just simple investments; they’re also valuable tools to help secure your future.
Can I Buy Other Precious Metals Besides Gold Bullion with my IRAs?
Yes, you can purchase physical gold, silver, platinum, and palladium bullion with your precious metals IRA. For example, when purchasing gold bullion coins you could buy: 1 oz American Gold Eagle coin, 1 oz American Silver Eagle coin, or 1 oz Canadian Maple Leaf. Additionally, you can purchase gold bars (1 oz and 100 oz) with your precious metals IRAs as well. Precious metals IRAs are held by a Trustee of an IRS-approved depository (bank or broker). If you would like to discuss which options are available to invest in with your personal accounts contact us today!
The IRS places strict rules around what can be purchased for your IRAs, some of which will affect whether or not you can purchase precious metals with your IRAs. There are specific rules as to what is eligible for gold and silver bullion IRAs (Check out FAQ #15 on IRS.gov). For example, coin dealers typically carry coins in either proof or uncirculated condition, neither of which are eligible for an Individual Retirement Account. To understand more about these IRS regulations and if it applies to your specific situation please consult your accountant and/or legal counsel before proceeding with any investment activity.
Setting Up a Gold IRA
Where Can I Store my Precious Metals Once They Are Purchased with my Roth 401k?
There are certain rules that you must follow if you want to store your precious metals in an IRA. The primary rule is that all assets in your self-directed IRA must be permitted by Internal Revenue Code Section 408. There are some restrictions, but these can be easily avoided by working with experienced and knowledgeable professionals who know how to set up gold IRAs for their clients. A professional self-directed 401k provider will provide easy access to your metals and investment choice.
If you want to hold physical possession of your metals, you will need to store them in an IRS-approved storage location, known as a trustee. The trustee must be approved by your custodian or plan administrator before they will approve it for you. Most reputable self-directed 401k companies and providers offer some kind of storage account as part of their services. In fact, some 401k providers offer multiple types of trustees for their clients’ precious metals investments. This may allow you to take advantage of lower storage fees in one type of account if your overall holdings are large enough.
Setting Up a Gold IRA: How Long Does the Process Take?
There are several requirements to consider when opening a gold IRA, but time shouldn’t be one of them. With modern technology making it easier than ever to set up an account and secure investment options, setting up your own gold IRA doesn’t need to be complicated or drawn out. There are no federal requirements for how long it takes to open and fund an account with gold; however, depending on your provider and individual circumstances, you can complete most steps within just a few hours. All in all, we recommend allowing three business days for setup, after which you can transfer funds into your account and begin buying physical gold products.
Although there are many steps involved in setting up your own gold IRA, they don’t all have to be completed simultaneously. This means you can open and fund an account, then set up your monthly or annual purchase schedule once you’re ready to start investing. Most providers also offer other investment options as well as physical storage for your gold; if you want to buy additional coins or bars after opening your account, or if you plan on storing them elsewhere (due to security concerns), we recommend completing these actions before setting a buying schedule. Still need help with specifics? Our customer service representatives can provide more details about specific providers in order to help make sure opening an account goes smoothly.