A gold IRA allows you to invest in physical gold as part of your retirement savings. This can help protect the nest egg against inflation and stock market ups and downs. When you put some of this retirement money into gold coins or bars, it’s called diversifying the portfolio. The value of gold often changes differently than stocks and bonds. Adding gold to an IRA retirement account can balance out risk.
Starting and funding a gold IRA may sound tricky, but you can actually do it pretty easily by following five straightforward steps. With worries about inflation and stock market volatility lately, many retirement savers are interested in gold IRAs. By setting up a gold IRA retirement account, you gain more control over part of the retirement nest egg.
Choose a Reputable Gold IRA Company
The first and most important step is taking the time to select a reputable gold IRA company located in california to work with. You want an established firm with a strong reputation that specializes in precious metals IRAs. Look for a company that has been in business for over ten years and has extensive knowledge and experience with gold IRAs. They should have an A+ Better Business Bureau rating.
The company should offer a wide variety of IRS-approved gold, silver, platinum, and palladium coins and bars to choose from. Pay attention to client reviews, fees, and the level of customer service and expertise before deciding on a gold IRA company. Take the time to research two or three potential firms before choosing.
Setup the Self-Directed IRA
Work with a gold IRA company to establish a new self-directed IRA account. The gold IRA company will assist you in filling out the paperwork and establishing a custodial account to hold the precious metals. This is necessary to follow IRS regulations for gold IRAs.
Fund the Account
Fund the gold IRA with cash contributions, 401k or other retirement account rollovers, and transfers from existing IRAs. Decide on the amount you wish to fund the gold IRA initially. The minimum is usually between $5,000 to $10,000 to start. Be sure to consult the gold IRA company on requirements for initial and ongoing contributions.
Select the Gold
Now it’s time to work with the account representative to select the types of IRS-approved gold and other precious metals you want in the gold IRA. Choices include gold, silver, platinum, and palladium coins and bars. Research the options and their current market value before deciding what best fits your investment goals.
Purchase and Transfer the Metals
The gold IRA company will place the order for the selected metal products and handle the transactions and storage. The metals will be safely stored with an IRS-approved third-party depository. Although you own the metals, they are stored by the custodian until you decide to take a distribution or transfer them. Follow the account representative’s instructions for efficiently funding the new gold IRA account.
Starting and funding a gold IRA is a major step towards diversifying your retirement savings and guarding against market swings. By selecting a reputable gold IRA company, opening an account, funding it, choosing physical metals, and completing the purchase, you can have a hedge against inflation set up quickly and easily in just five steps. Consider starting a precious metals IRA today.