Setting Up a Gold IRA Account-All You Need To Know
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Saving up for your retirement? Considering the present economic climate, you can never be too sure how much will be enough.
So how do you make sure the value of your investments doesn’t decline in the near future? Investing in gold might be the answer.
Simply put, gold is money that isn’t printed and doesn’t lose its value over time. In fact, if statistics are to go by, the price of gold has increased over the years.
Just to give you an idea about the value of gold, let’s take a look at the following example: In 2001 the price of gold was $271. Just ten years later in 2011 the price of gold increased to $1896 (an increase of 700%).
You are going to need an IRA (Individual Retirement Account) account in order to invest in precious metals. Here’s all you need to know about it:
You Can Purchase Gold with an IRA
Usually people have IRA accounts in conventional financial institutions like banks. They can make deposits, purchase stocks and other assets. These include gold and silver.
People who have a self-directed IRA account make their own investment decisions and have multiple investment options available.
You Can Do a Rollover from Your IRA
Most retirement plans allow account holders to rollover from their IRA. However, with rollovers, it’s best to wait for some time and let money accumulate in your account. Otherwise, rollovers might not be an economical option for you.
Difference between IRA and Conventional Plans
As per the law, tax applied on IRA and conventional plans is more or less the same. However, the key difference between the two is that a conventional plan doesn’t allow you to invest in gold commodities.
Therefore, in order to invest in gold, you will have to set up a separate account with a trustee. Your client will transfer the money to the new trustee every time there is a transaction.
In certain cases, your trustee can also sponsor a self-directed plan. It all depends on the kind of relationship you have with them.
It’s not a trustee’s job to provide you with investment advice. What they do is administer your account and provide you with service reports.
Choosing the Right Gold Dealer Is Important
Choosing the right dealer is extremely important. These people protect your assets and ensure your investment stays safe and secure. They provide you with details regarding mark up and premiums.
Make sure the firm you select has been operating for a long time and has a team of experienced professionals. This is where we come in.