Individual Retirement Account
An Individual Retirement Account (IRA
) is a retirement savings plan that provides some tax advantages to the individual, such as tax-deferred or tax-free growth of any earnings. There are a number of different types of IRAs
which stipulate different ages for withdrawal and varying contribution limits, as well as other important factors. IRAs can be used as a supplement to a 401k account or as an integral part of an investment portfolio.
While there is no limit on the number of IRAs one can have, there is a maximum deferred annual contribution.
An investor with a self-directed IRA may ensure that some of the funds in the IRA be invested in precious metals. IRA investments
may include any gold, silver, platinum, and palladium bullion coins, bars, and rounds that meet certain purity and refinement requirements.
A self-directed IRA is exactly like any other IRA, with one major difference; the owner chooses where their IRA funds will be invested, rather than just accepting whatever the IRA trustee or custodian decides. This provides greater flexibility, because one can choose the precious metals, stocks, bonds, CDs, mutual funds, government obligations and other investments one feels are most appropriate.
What is a Transfer or Rollover?
In simple terms, a Gold IRA Rollover is the process of transferring cash from one's existing IRA or 401k to an IRA that includes precious metals. Money in an existing IRA can be moved to a precious metals IRA by transfer or rollover. One can transfer funds as often as one likes, without restrictions. An IRA is opened and the transfer is authorized. The new IRA custodian will contact the previous institution and take care of enabling the funds to be moved. IRA rollovers require reporting to the IRS and there are time limits and other restrictions.
Competent tax advice should be sought prior to investment decisions being made.
Gold has traditionally been seen as a hedge against inflation and generally has lower price volatility compared to other precious metals. While the physical currency has depreciated some 90%+ during the last century, gold has maintained its value, and on occasions, exceeded its original purchasing power. Many countries such as China and India have been major importers of the golden metal in recent years, and certain countries are insisting on any inter-country debts being met by an exchange of gold.
Many analysts, investors and economic commentators are predicting major future gold price rises as a result of "pent up inflation" currency devaluation, and the possibility of countries being unable to repay their debts.
In terms of value, precious metals have performed exceptionally well historically as well as in recent years. Back in 2000, bullion has increased more than 500% on average, reaching up to 700% at one point. Just a decade ago, bullion sold at around $250 per ounce, now that same ounce would cost at least $1,300. That's a significant return by anyone's reckoning.
Precious metals are far more insulated from the effects of inflation and economic downturn. Moreover, precious metal investing tends to lead to significant profit when paper currencies lose value or crash altogether.
Before you make any decisions about investing in precious metals, read our complimentary Investors Guide and discover some of the insider secrets you'll need to know to invest safely and with confidence.
For more information on precious metals investing, please see our articles pages.
Points to note when taking out a precious metal IRA:
Are You Ready to Start Investing in Precious Metals?
It is important to ensure that the custodian of the IRA has filed all of the necessary tax exempt documentation to the IRS - ensuring that any transactions made through your IRA will be tax free.
The IRA Custodian should be able to advise as to what type of gold and precious metals that are acceptable to the specific IRA.
The IRA Owner will need to identify their preferred metals dealer from which to purchase any bullion and/or coins, etc.
Only use companies that have a track record, preferably in the Inc. 500 of companies and have a high BBB rating or other Trustmark verification.
If you're ready to venture into the world of gold investment then your first port of call should be Regal Assets - the Official Online Gold IRA company where you will discover all of the resources you need to set up your own precious metals IRA, as well as a personal service that is second to none. To start on your path to personal prosperity right now just click below to request your FREE Complimentary Gold Investing Kit containing all of the vital knowledge and resources you will need to start investing in gold with confidence.