Gold IRAs: Things You Need to Know Before Making a Switch
Among the many retirement planning instruments available today, an Individual Retirement Account or IRA is the most popular. Every good portfolio needs to have an IRA in it, simply because there are so many benefits to enjoy.
In recent years, however, gold IRAs are becoming more popular than conventional IRA options. As the name suggests, a gold IRA is based on gold rather than shares or paper assets, offering better long-term security and return to users.
If you are thinking about switching to a gold IRA, you are not alone. Many have made the switch, and more are considering the move themselves. Before you start moving your money to a gold IRA, however, here are the important things you need to know first.
A Reliable Custodian
One of the first things you need to do when considering a move to a gold IRA is finding a reputable and reliable custodian or broker. Working with a reliable custodian is critical for two reasons. First, only by working with a reputable custodian will you be able to maximize the benefits of your gold IRA.
The second reason is flexibility. Reputable custodians will recommend precious metal dealers you can engage, but you maintain complete control over who you work with for your gold IRA. You also get clearer terms and a transparent pricing structure to work with.
Know the Costs
Aside from the one-time account setup fee that applies to all IRA accounts, there are additional fees you may have to pay when using a gold IRA. Some sellers charge a small markup or a fee on the gold coins and bullion they sell. This fee is a cost factor to consider.
You also have custodian fees to think about. Keep in mind that all IRA accounts charge custodian fees annually, so you have to take steps to understand the pricing structure nonetheless. Review the costs and compare them with the potential returns you get from a gold IRA before making your decision.
You don’t have to do a manual transfer when making the switch from some IRA accounts to a gold IRA. If you already have a 401(k) account, for instance, you can roll over some or all of your funds into a gold IRA. Rolling over takes no time and is the easier option of the two.
A manual transfer request is also a way to move from conventional IRA accounts to gold IRAs. It takes longer to process manual requests, but the rest of the process happens instantly. After all, gold IRAs are recognized as an eligible retirement account.
While making the switch, don’t forget to explore the tax breaks and other savings you can get from moving to gold IRAs. The money you save on taxes and fees can then be put towards your retirement accounts and other investments.
Gold IRAs are popular for all the right reasons. It is not only safer in the long run, but also better in terms of ROI and growth. Now that you know the important details to review when making the switch, you can move some or all of your retirement funds to a gold IRA.