Precious Metal Backed IRAs

5 Benefits of Precious Metal Backed IRAs

There are many benefits that you will enjoy after you decide on precious metal backed IRAs as the best investment plan for your future. Gold has a great history of maintaining its value as well as appreciating over time. This means that after you decide to rollover your savings in to gold IRA, the savings can be from 401k plan or from the savings that you make out of your daily business. You will be assured of having a lot of money which you can use during your retirement age. Nowadays you will see many families going for precious metal backed IRAs as a way of ensuring their families will be stable after the bread winners have retired or are not actively involved in production activities.

5 Benefits of precious metal backed IRAs

1. Money protection

After you decide to have precious metal backed IRAs to be among your retirement savings plan you will be assured of great protection of the money over time. This is simply because the IRAs will not allow you to withdraw the money for a specific period of time. This is unlike a case where you will have other forms of investments where you will be tempted to withdraw the funds even after you have been faced with a simple need which you can easily solve. You will also be safeguarded against inflation after you decide to keep precious metals such as gold in your investment portfolio.

2. Growing Intrinsic Value

Gold and silver used in the precious metal backed IRAs will always go up in value. This is due to factors such as their limited supply and the ever-increasing demand. This means that after you decide to have gold and other precious metals in your retirement investments you will be assured of great value of your savings in the future. This is unlike other types of investments which will expose you to a lot of risks in the process of investing.

3. Gold ensure a Protective Hedge

When the price of stocks fall the price of gold usually go up. This provides a great protective hedge in case you have diversified your savings where you have some in gold IRA and others in stocks. In case you can invest in both, then you should take the advantage and enjoy great savings.

4. Tax Benefits of precious metal backed IRAs

You will be exempted from paying taxes after you decide to go for precious metal backed IRAs, this is simply because the government allows you to move funds to the gold IRAs free of taxes. In order to enjoy this benefit you should avoid making cash withdrawals from your IRA account that is not gold backed. Instead you should make the transfer by writing to your IRA account custodian.

5. Numismatic Value as one of the benefits of Precious Metal Backed IRAs

Gold coins that can be a century old can be part of gold IRAs, this will make you enjoy great numismatic value of the gold collectibles which you can show off to friends and families. In order to know whether you are buying the right gold coins or bars as part of your precious metal backed IRAs plan, you should ensure they are genuine.

Why Many Americans opt for gold IRA

After reading gold IRA reviews, you should be in a position to locate the best Gold IRA Company. Many Americans will like to protect their hard earned funds. That is why you will find them opening physical gold IRA accounts. You should always research on gold IRA before you make your decision. First, you should know it works well as a long-term investment.

What are Gold and Silver IRAs?

Gold and silver IRAs are accounts where you assign some of your funds or all of them to hold silver and gold as the store of value. If you open a gold IRA account now, you will buy physical gold bars and coins and have them safely stored. After say 20 years, you will like to withdraw the funds. You will have the exact amount of precious metals and sell them in the market value. In most cases, the precious metals keep on rising in value.

How do gold and silver protect your investment?

There are several ways. First, they are not affected by inflation. If the currency is devalued, your precious physical metals will not be devalued. This is because they can be sold in different parts of the world where the value will be favorable. In short, no single government or body controls the value of precious metals. Gold backed IRAs are becoming popular nowadays due to the peace of mind they offer investors. The $18 trillion debt deficit in the governed will not interfere with your assets if you store them in physical gold or silver.

What is a Gold IRA?

If you are looking for gold IRA definition, it is simple. Gold IRA is a self-directed IRA account where you assign gold bars and gold coins as a store of value. You can as well hold other precious metals such as silver and palladium as a store of value. They work like 401(k) and pension plans, but the value is stored in precious metals.

What is a Self-Directed IRA?

Self-directed gold IRA is an account where you initiate the process of setting up the retirement investment plan. You have more control over the plan than other plans such as 401(k) where the employer will have to control the funds on your behalf. The account adheres to all IRS regulations. It requires a qualified custodian or trustee to hold the assets on your behalf. You can set up the account through a gold IRA rollover. The rollover involves moving funds from your current IRA plan to the self-directed IRA plan.

Accounts Eligible for Rollover into Gold IRA

There are several accounts which are eligible for rollover. If you will like to try gold IRA investing, but you have the following accounts, then you are allowed to rollover. Are gold IRAs safe? They are very safe; you can rollover any amount.

  1. Traditional IRA
  2. Roth IRA
  3. 401(k)
  4. SEP
  5. 403(b)
  6. Some annuities
  7. TSP (Thrift Savings Plans)
  8. Pension plans

The process of converting the above plans into gold backed IRA plans is very easy. You will just fill a simple form, and the best gold IRA company professionals will guide you through the process.

Why you should invest in gold

  • Allows portfolio diversification
  • Inflation hedge
  • Risk management
  • Currency hedge
  • Supply constraints
  • Deflation
  • History of maintaining its value
  • Geopolitical uncertainty
  • Tangible assets
  • Increasing demand

What are coins and bars recommend for IRA accounts?

  • Austrian Philharmonic Gold Coins
  • American Eagle Gold Coins
  • American Buffalo Gold Coins
  • Canadian Maple Leaf Coins
  • PAMP Suisse Gold Bars

What is the fineness of metals allowed in gold IRA account?

  • .995 Gold
  • .9995 Platinum
  • .999 silver
  • .9995 palladium

What is the recommended period for you to keep precious metals in your account?

The time depends on your investment strategy. You can keep them for any period of time when you feel like it is time to liquidate. A company which allows buyback makes it easy for you to liquidate. You can as well withdraw the precious metals and open a home storage gold IRA. But, you should invest well on security.

Where is the Gold in IRA accounts Stored?

There are many gold depositors available. It will depend on your custodian to choose depository, or offer you the option to pick from a list of depositories he will suggest to you.