Gold bars don’t pay interest, dividends, or other returns. You can’t store your gold at home or in a safe deposit box. You may not deposit any precious metals that you already own into your Gold IRA. Gold IRAs have higher maintenance fees than other types of IRAs because of the additional costs associated with investing in gold.
In addition to brokerage fees and account setup fees, the investor must pay additional costs to store and insure the precious metal. They can also be a premium on sales costs and an additional fee for closing an account. A gold IRA could be safe as long as you take the right precautions. You must carefully review all the providers you use when setting up a Gold IRA to make sure they are legitimate.
Even if you find reliable companies to set up a gold IRA, gold is an investment that can fluctuate in price. A gold IRA comes with many of the benefits of a physical asset as well as the tax benefits of an IRA. A gold IRA company usually has an order desk that can help you select gold (or other precious metals) that fit your investment strategy — or at least shed some light on the gold products most commonly ordered by retirement savers. People who would like to invest in gold but don’t want the hassle of setting up a gold IRA have other options.
However, the Taxpayer Relief Act of 1997 expanded the list of assets that could be included in an IRA to include gold and a few other precious metals, such as silver, platinum, and palladium. Investing in a gold IRA could hedge against this risk, but you don’t have the gold in your physical possession. Some Gold IRA providers (“Gold IRA Companies”) offer promotions that can cover some or all fees. However, you should always find out what the fees are and under what circumstances you must pay them yourself. For this reason, those planning for the future may be looking at the pros and cons of gold IRAs and other new investment opportunities.
Understanding
the pros and cons of gold IRAs can help you decide whether they’re the right choice for your personal retirement plan. The real benefit of a gold IRA is combining the benefits of precious metals yourself listed above with the additional benefits that an IRA can bring. Buying a gold IRA should be part of your comprehensive financial strategy for retirement (or outside of a retirement account), which you’ve carefully formulated yourself with the help of your own financial professionals. Storing gold in an IRA offers tax benefits, but a physical asset doesn’t take advantage of the tax-free growth aspects of IRA investments.
Since all gold IRAs must be self-directed, opening an IRA means that the individual has control over investment decisions. While some people claim that there are ways to physically take possession of gold in your IRA through loopholes, this is generally not the smartest idea. Gold IRAs are usually defined as alternative investments, meaning that they are not traded on a public stock exchange and require specialized expertise to value them. Because the gold in a gold IRA must be stored in an IRS-approved deposit, you can’t store it in a safe, a home safe, or under your mattress.
