A gold IRA often has higher fees than a traditional IRA or Roth IRA, which invests exclusively in stocks, bonds, and mutual funds. Proponents of gold IRAs argue that these costs are worth the peace of mind protecting yourself from a potential financial apocalypse. But let’s assume that a disaster really does occur. How would you redeem your gold if it’s in a deposit at the other end of the country?
Gold IRAs are a special type of self-directed IRA that allows you to invest in physical gold and other precious metals, such as silver, platinum, and palladium. Investing in a gold IRA requires the services of a custodian bank, a broker to purchase gold, and an approved depositary to store gold. Like other self-directed IRAs, Gold IRAs can be Traditional or Roth. Required minimum payouts Once you’ve reached the age of 70½, your Gold IRA is subject to a minimum payout (RMD), just like any other IRA account outside of Roth
.
If you really think it’s a good idea, at least check the IRS rules and custodian fees before you deposit gold into your IRA. The best way to reap the benefits of a Gold IRA is to use it as an accumulation tool as part of a more comprehensive, diversified investment strategy, which can be achieved even without a Gold IRA. The advantage of gold ETFs is that you can buy and sell stocks just like stocks and hold them in a conventional IRA or 401 (k). No special account is required. It must be emphasized that a gold IRA is only necessary if an investor wants to invest in physical gold bars, coins, and gold
bars.
Advantage Gold has made a name for itself as the best gold IRA company for first-time buyers with its low minimum requirements, convenient customer support, and comprehensive education platform. In addition, while the IRS allows gold coins such as American Gold Eagle, American Buffalo, Canadian Maple Leaf, and Australian Gold Nugget, it does not allow investments in South African Krugerrand or British Sovereign gold coins. The job of a gold IRA company is to facilitate the creation of the IRA and the purchase of gold coins or gold bars. Specialized custodian banks Standard depositories such as Fidelity, Schwab or TD Ameritrade
will not handle physical gold in an IRA.
So if you want to hold gold in your IRA, you’ll need to set up a self-directed IRA first and then you’ll need to find a custodian that specializes in self-directed gold IRAs. For anyone worried about financial security in retirement, these ads touting gold and silver IRAs on conservative-leaning cable TV channels and digital news outlets can sound pretty compelling. Many of the custodians and brokers that open established IRAs that invest in traditional assets are unable to open and operate an SDIRA, including a gold IRA. While Advantage Gold appeals to all types of gold IRA investors, it has a particular appeal for first-time buyers
.