Additionally, we will also discuss the many benefits of diversifying your investment retirement portfolio with precious metals. With its intrinsic value and millennia of being used as a form of currently, gold is one of the best ways to hedge against inflation and ensure your wealth will be there for you when you retire.
In this article we will be tackling a lot of topics. So, sit back, relax and get ready to absorb a lot of information on how to diversify your portfolio by investing in gold IRAs online.
Gold IRA - What Is It?
One of the most pivotal moments in an individual’s life is retirement. We all look forward to that day where we can step away from professional life and fully enjoy the leisure time we’ve worked so hard to achieve. But, it’s important to remember that when you leave money in the bank, it is actually losing value due to inflation.
So, what exactly is this type of investment? A Gold IRA, also known as a precious metals IRA, is a type of self-directed individual retirement account that enables individuals to invest in gold bullion as part of their retirement savings strategy. It's worth noting that in a regular IRA, owning physical gold is not allowed. However, there are alternative ways to gain exposure to gold in a regular IRA, such as investing in gold stocks or gold ETFs (exchange-traded funds).
To maintain their wealth, many retirees are investing in gold IRAs. Why? It is a time-tested, solid investment and one that will always maintain a vast majority of value. And there are many ways to invest in precious metals, whether it is in bullion, coin or bar form.
Gold and other precious metals are what one can refer to as alternative assets. These are different from other types of investments such as stocks and bonds in that their value isn’t speculative. In fact, in gold, silver and other precious metals are what we form our basis of monetary value and this is unlikely to change in the next several hundred (if not thousands) of years.
For these reasons, many investors are turning their attention to investing in gold – especially in light of record-high inflation and the uncertainties of the modern geopolitical climate. Investing in the market is smart; diversifying your portfolio of retirement investments with precious metals is even smarter as it will protect you from dips in the market and other economic uncertainties.
You’re probably thinking, “This is all great, but I’m absolutely new to investing in precious metals online.” Don’t worry, Your Gold IRA Guide is here help you understand how to invest in a gold IRA online!
Do These 3 Things Before You Take the Investment Leap
Since your retirement funds will direct affect your quality of life when you hit retirement age, it is essential that you carefully weight your options and research as many unbiased resources as possible.
That way you will come away fully understanding your options, which will help you determine the right option for you. Here are three helpful tips to help you get started planning your IRA:
1. Determine Your Investment Capabilities and Goals
First, you need to assess whether investing in gold is currently feasible. If you are living paycheck to paycheck, investing in precious metals may not be the best option for you currently. This cannot be expressed enough, as your decisions now will affect your quality of life when it comes time to retire.
First off, is a gold IRA something you want to invest in and would you be okay in investing in something that is stable yet may not deliver high gains? Do you have a means to supplement your income to get the most out of your investment activities?
These are just a few of the questions you may want to ask your self before you seriously consider investing. By answering these questions, you should be able to come away with an informed decision whether to invest in Gold IRA or not.
2. Research and Gather Information
This is the most crucial step in the process. You wouldn’t attempt to pilot an airplane without the necessary training (we hope), so why would you invest in something without giving due diligence to research?
Before you hand over your hard-earned money, be sure to check into things such as storage (is it IRA approved?), fees and conditions.
It’s also important to be aware of the various scams and fraudulent activities in the industry. While the IRA precious metals industry is legitimate, wherever money changes hands there is bound to be people looking to defraud investors.
Typically, these scams are directed at first-time investors. As a word of caution, gather information on how gold IRA works. Also, you can start looking for reputable companies such as this one.
3. Securing Funds
Like most financial and investment transactions, your gold IRA will come with some fees. These fees can include start-up costs as well as storage and management fees. These are common and often unavoidable fees you will need to pay.
The amount and type of fees differ from company to company, therefore you need to be proactive in researching any associated fees. Remember: if you find a storage and management company with fees that seem too good to be true, it is likely a scam.
Fees and investing are two things that cannot be separated. Therefore, you should be cautious where and how you choose to invest your money.
Starting Your Investments
After conducted your research and weighed your investment options, you are now ready to invest in your gold IRA online. Here are the steps you will need to go through to establish your account:
1. Choosing Gold IRA Company
Choosing your gold IRA company is the most important step of the process. Only work with reputable companies with solid reviews and an extensive history. Conversely, if you pick the wrong company, it could be disastrous for your retirement funds.
Most of the companies double as your custodian (the one responsible for all the logistics of your account). They are commonly in partnership with a depository, a place to securely store your precious metals. Home storage is not an option. To qualify as an IRA, your gold must be held by an approved storage facility.
Once you have chosen a gold IRA company, be sure to have all your paperwork ready to make the process as smooth as possible.
Choosing your gold IRA company would be based on these criteria:
Name and reputation - Go with a company that has extensive, positive online reviews. Furthermore, check if it has affiliations and accreditations from other reputable organizations.
Price - Do not be fooled by companies offering lower prices. Most of the time, this is a scam. And, it’s important to remember that low prices often translate to limited service and accountability.
Policies - Rules and regulations are one takeaway of a good IRA company. Are their policies difficult to follow and understand? If so, you may want to look at other companies.
Other considerations - Rates shouldn’t be the only factor you consider; also pay attention to their customer service, and the firm’s capabilities.
Your Gold IRA Guide’s recommended gold IRA company is Goldco. Not only does this firm have thousands of good reviews, they are careful to explain the “ins and outs” of investing with their customers.
2. Account Funding
As we previous stated, one of the most important things you need to do is to have a decent amount of funds to invest. Almost always, the more you have to invest with, the more favorable the terms and rates.
If you are transferring funds from a traditional IRA, here are some terms you will likely come across:
- Rollovers - Rollovers only apply to investors that already have an IRA. With this option, you can use a portion of an existing IRA account balance to purchase precious metals.
- Transfers - With the transfer option, your current IRA custodian would send monetary contributions to your gold IRA custodian. This is a great way to avoid typical hurdles and you can expect fast processing and transactions.
- Cash Payments - Cash payments are another viable option. You can either use physical cash, a check, or wire transfer to fund your account.
3. Asset Purchasing
Now we’re to the exciting part – actual acquisition of assets. Since you are opting for a gold IRA, you will be looking for precious metals, such as gold and silver.
Different companies will have different rules and procedures for purchasing precious metals. In some cases, your chosen company will sell you their IRS-approved coins.
Often times, your company — especially if they have no inventory for metals — will offer to buy from other firms. Your IRA custodian is responsible for acquiring said assets using your IRA funds.
4. Finishing and Monitoring
Monitoring how your gold IRA performs is very important. Most companies can help you monitor the growth of your IRA through their own platform, while others will send you monthly reports.
Be sure to ask a representative from the company about the availability of such reports and ask about the reporting schedule. Any legitimate IRA company should provide regular reports on the state of your investment. If they don’t, it’s definitely a red flag.
After you’ve followed the steps above, you are now the proud owner of a gold IRA account. And, you may be wondering, what’s next?
For starters, you need to be sure to monitor your account. As a reminder, a gold IRA, while not as risky as stock-backed IRAs, is not without risk.
Be sure to occasionally consult with your custodian so you can stay on top of investment opportunities. They can also help you avoid scams.
Individual retirement accounts possess a great potential to help you become financially secure, even in your retirement years. Just make sure you understand what you are getting into and pay attention to industry trends!
At Your Gold IRA Guide, we recommend working with Goldco, a trusted gold IRA company.
Thank you for reading our article on how to invest in gold IRA online. For any comments or questions, please be sure to leave them in the comment section below.