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How to set up a gold IRA, you ask? It’s not as complicated as you might think. Here are three reasons why you should consider setting up your own gold investment IRA, and how you can do it with minimal effort on your part.
Set up a Gold IRA today!
Setting up an IRA isn’t complicated
The process for setting up an IRA is pretty straightforward and simple. If you’re in your twenties or thirties, it’s probably not even worth setting up an IRA right now, but as you get older and begin making more money (or you already are), having an IRA is pretty much mandatory if you want to protect yourself from taxes when it comes time to start cashing out. Setting up a gold IRA is just another way of getting in front of that inevitable tax bill; by holding gold in your retirement account, you’ll be taxed at capital gains rates rather than income rates when it comes time to cash out—and that can save quite a bit of money over time.
Setting up an IRA doesn’t take long. The IRS requires you to fill out Form 8606 each year; in Section 2, you’ll need to add in all of your contributions, along with any gains or losses associated with them. This may seem like something that would be tricky to track on your own, but luckily there are services available (like The Vanguard Group) that will do it for you—for a fee of course. If they can keep up with hundreds of millions of dollars worth of investments, then it shouldn’t be too hard for you either.
Setting up an IRA is also pretty straightforward. First, you’ll need to open an account at a brokerage or an institution that offers IRAs (which is basically every brokerage and financial institution). Then, deposit some cash into your new account and set up regular contributions. Finally, invest your money in low-cost, highly liquid assets like gold or gold ETFs. It’s simple to do—you just need to make sure that you never touch it before retirement! If you ever want to use your money before retirement age, then you’ll need to withdraw it all and pay taxes on it all; so make sure that none of your contributions are going towards non-deductible investments like collectibles or real estate.
A Gold IRA Provides Protection from Inflation
When you invest in gold, your investment will grow with inflation. Inflation occurs when there is a steady increase in prices of goods and services over time. This means that your investments need to keep up with inflation rates if you want them to retain their value. When buying gold for an IRA, make sure you choose between physical gold or physical gold ETFs to receive your tax benefits. The latter option is easier and more convenient since it doesn’t require storage of heavy precious metals in your home or office.
Unlike stocks and bonds, gold doesn’t have yields or dividends that fluctuate based on changes in business and economic conditions. The price of gold tends to follow changes in inflation, which is usually correlated with overall economic growth. The result is that as long as you hold your investment for an extended period of time, you can expect a steady increase in its value regardless of what happens in other markets. If you want to diversify your portfolio and add another layer of protection against inflation, consider setting up a gold IRA today.
A Gold IRA Reduces Currency Fluctuations:
When you hold U.S. dollars in an IRA, there’s no guarantee that those dollars will have value when it comes time to withdraw them. The value of your portfolio can change significantly based on changes in currency exchange rates and even inflation or deflation in other markets. When you invest in gold for an IRA, however, your portfolio will always have at least some intrinsic value independent of changes in currency values or fluctuations elsewhere in financial markets. By investing a small portion of your portfolio into physical gold, you create an asset that is reasonably insulated from volatility that occurs elsewhere in financial markets.
A Gold IRA Saves You Money on Taxes:
It’s true that you will incur upfront costs when you set up a gold IRA and buy precious metals, but if you hold your investment for long enough to receive tax benefits, then it will more than pay for itself. This is because once your account reaches a certain threshold, you can file an annual Form 1099-R with your account administrator and reduce taxable income by deducting losses in physical gold. When choosing which provider to work with, make sure they follow IRS guidelines as closely as possible. As long as they do so and document properly, then investors are entitled to full retirement tax credits if they plan accordingly.
Storing Your Gold Safely
Once you’ve set up your gold IRA and purchased some physical gold, storing it safely is extremely important. Keeping it at home isn’t advised; if anything happens, your gold is gone—and all that value is lost. The safest place to store it would be in a secure vault elsewhere, but that comes with another risk: If you want to sell your gold quickly, you might have to pay storage fees until you find someone who wants to buy it. But if you keep it in an account at a reputable firm that’s backed by insurance, that shouldn’t be much of an issue—you can rest easy knowing your investment is protected from theft or damage and there are no hidden charges on top of exchange fees.
With a gold IRA, you can open an account at any reputable firm that offers self-directed IRAs—most major financial institutions are likely to offer them. However, it’s also possible to set up your own account with an independent custodian or even work directly with a bullion dealer. One of these options may be preferable if you have existing business relationships or want more investment control over your gold. While there are certainly benefits to choosing a bank, independent custodian or broker, it may come with additional fees and restrictions that make it harder to access your assets in an emergency—this is why many gold buyers prefer working directly with their bullion dealer instead.
As long as you set up your gold IRA with a reputable firm, it’s possible to rest easy knowing your gold is safe and accessible. If you ever need to liquidate an investment, all you have to do is sell it back and request delivery—your custodian will take care of everything else. As an added bonus, if you like collecting rare coins or adding more physical assets to your portfolio, a gold IRA can make for an excellent addition. With some basic research and careful planning ahead of time, setting up a gold IRA can be easy and secure—there’s no reason not to put one in place today!