Gold IRA: What it is, Where to Get it, and Why You Want it.


Living comfortably through your Golden Years of retirement is a goal that should be on the top of this bucket list. With the growing cost of living not seeming to be slowing anytime soon, putting your retirement funding money in the right place is proving to be more crucial than ever before.

Investing in gold and other precious metals is a trend that is fast making its comeback to the mainstream, and more and more people are investing in these types of tangible commodities these days. 

There is a range of reasons why investing in gold and similar precious metals is on the rise and some of those we will get into here. Gold offers protection to your money during these turbulent and uncertain times that we are experiencing and is a great backdrop to your financial future. 

What is a Gold IRA?

A Gold IRA is an investment opportunity that allows you to own physical gold bullion and offers the holder additional tax advantages that apply to their individual retirement account. 

The term gold IRA refers to a specialized individual retirement account that allows the holder to own and retain gold bullion or coins and other precious metals as investments. A gold IRA investment account helps to protect your investments so that you can retire the way that you want to. Financially stable and stress-free. 

Often, the terms gold IRA and precious metals IRA are used interchangeably, as they both refer to the same thing. Setting up a gold or precious metal IRA can be done with pre-tax funds, or it can be set up as a Roth IRA, bought with post-tax money.

Types of Gold IRAs

Like traditional investment accounts, Gold IRAs come in a few different forms:

  • Traditional Gold IRAs: Traditional gold IRAs are funded through pre-tax dollars, meaning that any additional contributions and earnings grow on a tax-deferred basis. All withdrawals are then taxed at retirement. 
  • Roth Gold IRAs: Roth gold IRAs present no immediate tax advantages as this type of IRA is funded with after-tax money. You pay your taxes on this account when you start withdrawing funds.
  • SEP Gold IRAs: SEP gold IRAs are, like traditional SEP IRAs, available to small business employees and individuals who are self-employed. What this means is that you are only taxed once you withdraw from the fund, and you are not taxed on any contributions that you make to the fund. However, there are a few limitations to the contributions you do make. 

Where can you get a Gold IRA?

When deciding on investing in a Gold IRA account, it is advisable to invest with one of the best gold IRA companies in the business, as their expert and extensive knowledge of the IRS rules and regulations regarding precious metal investments will certainly make the experience pleasurable.

Traditional brokers are not properly equipped to offer the specialty services and accounts necessary to host your gold IRA. Specialty documentation and custodianship are required for the handling and tax reporting purposes required to maintain these exclusive accounts. 

Much like the more traditional IRAs, annual contribution limits do apply to gold IRAs, and regulations must be followed when the time comes to make withdrawals.

Storage of your gold may not be done at your private residence. Storage must take place at a bank or registered depository. Assets stored at your home count as a withdrawal, and as such, you will then need to pay the relevant taxes applying to it. 

Maximum contributions that you are allowed to make to your gold IRA were limited to $6,000 in 2022 and have been increased to an amount of $6,500 for 2023. Note that those over the age of 50 years may make an additional contribution amounting to $1,000. This amount applies to both years, 2022 and 2023.

Why Invest in Gold?

There are numerous reasons why you should put your money into gold, and here we are going to take you through some of the main and critical reasons why gold is a strong and solid investment for your future and the future of your retirement aspirations. 

Gold is a commodity that offers the holder tax-free growth. Gold has been the top-performing asset throughout the US and the UK over the past 20 years. Growing by a massive 450% over the past two decades. 

Since the time of its first discovery, gold has been proven to hold its value, regardless of economic uncertainty and during times of economic upheaval and depression. This store-of-value characteristic that gold possesses makes it the ideal investment for creating stability, as well as providing a measure of long-term wealth protection and preservation.

Why Gold is Considered a Good Investment

Gold has been and always will be a valuable commodity, partly due to its finite properties, as well as its value in the field of technological development and manufacturing. The demand for gold is a perpetual stream. 

Diversification: Holding gold in your retirement portfolio is a great way to help diversify your spread by using gold to hedge your portfolio against factors such as equities experiencing sharp falls and the costs of inflation. 

Perceived Safe Haven: Particularly during uncertain and volatile times, gold has been a sought-after asset for any serious investor. It is one of the considered “safe haven” investment options due to its stability during the aforementioned times.

As an Inflation Hedge: When central bank measures prove to be ineffective or an inflationary shock occurs, gold acts as an effective hedge, counteracting these unexpected and possibly unforeseen events. It provides additional stability, security, and purchasing power to an investment portfolio.

A gold IRA is a very solid and able type of self-directed individual retirement account that allows you to hold physical gold, platinum, silver, and other precious metals in it. 

Hedging against inflation and economic instability, gold holds its value and thrives during downswings and turbulent economies, not to mention the additional stability and certainty that it applies to your future and the preservation of your wealth, your retirement, and really allowing your Golden Years to shine bright.

Leave a ReplyCancel reply