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A Gold IRA Rollover? Don’t Do It.

Don’t Invest in a Gold IRA Rollover (Without Researching These 4 Areas)

gold barsThere are some amazing benefits to investing in precious metals. In fact, a gold IRA is one of the safest places to keep money and is basically inflation-proof. Still, a Gold IRA or one based on other precious metals is not one entered into lightly. Before making such a major investment decision, it helps to know a bit more about the ins and outs of precious metals investing. There are 4 specific areas of research that, when properly understood, make the decision much easier and help make sure that the maximum value is achieved for your investment.

 Rules and Regulations for Precious Metals IRAs

There are a number of legal issues surrounding the transfer of funds from a 401k or a cash-based IRA to a Gold Rollover IRA. Most of these regulations surround the maximum limits of an initial investment in an IRA and the annual contributions that a person can make. One of the most important things to be aware of is how taxes and fees can increase dramatically if a qualified IRA custodian does not handle the transfer of funds. Thankfully, there are many different precious metals companies that have the necessary qualifications. With authorized help, a gold IRA rollover should be completely tax free.

Benefits of Bullion Gold (and Silver)

Before making an investment in gold, it helps to know what the options are. Regulations limit the kind of gold that can be used in an IRA, excluding many numismatic or collector’s coins. Still, there are several types of gold and silver to choose from. The best option is bullion. Bullion coins are simple and easy to buy and sell. Their price is based only on the spot price of gold. There is no need to negotiate a price or to take a financial hit just to unload bullion coins.…

Rolling Over Your 401k Into A Gold IRA

Gold-CoinsGold is fast becoming the preferred investment vehicle for retirement accounts. Its intrinsic value and security in possession make it safer than the usual market investments.

The major hurdle with IRA ownership of gold assets is finding a trustee willing to establish the self-directed IRA, handle the transfer of funds to the precious metals dealer and oversee the physical transfer of the coins or bullion to storage.

The IRA custodian should be instructed to send forms for the rollover directly to the 401(k) custodian. Alternatively, IRA rollover forms can be sent to the investor.

Finally, when the gold 401k rollover occurs, funds may be allocated into the new gold IRA in different ways. If more than one type of precious metal is purchased, the percentage of gold in the holdings may be specified. Similarly, if more than one form of gold is held, such as both coins and bullion, the ratio of one form to the other can be directed.

Convert Your 401k Into A Gold IRA

Golden Eggs Historically the value of gold has moved counter to the valuation of stocks, bonds and mutual funds. This negative correlation makes it clear that, now that traditional securities are struggling to produce decent returns, your retirement investment should be converted to gold.

However, unless you have access to large liquid holdings, the call arises “convert 401k to gold IRA.” Your 401k will underperform if left in the stock market. Between 2002 and 2010, gold appreciated in value 527%, versus the average of 8% year over year for stocks. You work too hard for your money for your money not to work as hard as it can for you.

Lingering Uncertainty In the Market Prompts Gold IRA Account Investment

Global GoldThe number of safe harbors for investment keeps shrinking. Investors leery of the stock market have had to accept declining returns for years. Many Individual Retirement Account owners have turned to investment in gold. Gold IRA accounts offer higher returns for less risk than other more traditional securities.

Gold IRA account ownership requires certain observances. The Internal Revenue Code requires gold coins and bullion adhere to fineness standards. While few restrictions are placed on gold coin ownership, South African Krugerrands cannot be possessed. Gold coins invested in a Gold IRA must be held by an IRA trustee to avoid deferred tax conflicts. Direct possession would incur immediate tax obligations.

Physical ownership of precious metal assets by IRAs is not for everyone, although its popularity has risen in the last few years along with the price of gold.

Why Invest In Physical Gold Instead Of Exchange Traded Funds?

Gold BricksThere are specific advantages to having a physical gold IRA instead of having gold Exchange Traded Funds. Exchange Traded Funds, or ETFs, are incrementally invested, gold-backed investment vehicles, similar to mutual funds for securities. They allow an investment in gold to be managed by a financial institution on the investor’s behalf without the responsibility of physically safeguarding the gold.

However, the convenience of indirect possession presents its own risks. Legislative changes could hamper taking future physical possession of the gold. Maximum safety of investment is obtained by outright purchase of metals in your IRA, and storage in a secure, insured, and private vault.

Physical gold IRAs allow the most flexibility in the type of gold coins and purchased. Finally, peace of mind comes from not having to rely upon the banking system. Should financial instability occur again, physically possessed gold will not be threatened.