Pros And Cons Of Gold IRA
Are you looking for investment options to save for retirement? Consider opening a gold IRA. Investors consider gold a great investment option as it is a tangible, durable asset that works as an inflation hedge during times of economic uncertainty.
Although you can choose from other investment options like stocks and bonds, as the gold value increases with time, it’s a suitable long-term investment for you to make. Before you open a gold IRA and start buying gold bullions, learn what it is and what benefits and shortcomings you need to know before opening it.
What Is Gold IRA?
An IRA, also known as an Individual Retirement Account, is a retirement plan you can avail through which you can save commodities till retirement. You can withdraw the amount according to the rules and regulations of the IRA type. What makes IRA so special is that it offers tax benefits as you invest. Consider the traditional IRA type, you fund the account with pre-tax income, and income tax is charged from the withdrawal amount.
The IRS allows investment in a few commodities in an IRA. Gold is one of the options. This type of IRA account follows the same rules as a standard IRA; you can keep physical gold bullions and gold mining stocks in an IRA account.
The Benefits Of Gold IRA
Gold IRA offers many benefits. Here we have listed a few:
- Gold IRA offers tax benefits. Any contributions made in a traditional IRA and withdrawals made from a Roth IRA are tax-free.
- The investor considers gold a long-term investment. As IRA keeps the asset secure till retirement, gold is well suited to an IRA. Even though you can make early withdrawals from an IRA, penalties can be implemented, which prevents you from touching the assets stored.
- Gold IRA allows you control over investments as they are self-directed.
The Risks Of Gold IRA
Even though you can avail benefits from a gold IRA, with benefits also come risks. Here are some common risks that you should know:
- You have to pay the gold IRA custodian to keep the gold safe. Also, you might have to pay for the delivery, shipment, or transport fees for moving your gold to an IRA. You should prepare these fees beforehand to avoid any issues in the future.
- The IRS has strict rules on keeping what type of gold in an IRA. You can’t buy gold and keep it in an IRA. You have to purchase gold bullions that are 99.5% pure. You can also keep gold coins such as the American Gold Eagle, the Canadian Maple, and the American Buffalo inside it. The custodian handles all the transactions.
If you’re looking for a professional precious metal investment dealer to buy gold, contact Orion Metal Exchange. We are a reputable precious metal storage company that operates online. We can help you figure out which precious metal investment option is ideal for you. We can also open a gold IRA account.