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6 Things to Know About Gold IRAs

By    |   Tuesday, 03 April 2018 08:54 AM

Gold IRAs are alternate ways for savings in an individual retirement account. Investors can own physical gold, silver, and other precious metals that aren’t available in traditional IRAs.

Investors may consider gold IRAs for financial security and not necessarily for quick profits, although gold can rise and fall in cycles. They may also choose a gold retirement fund along with their investments in stocks, bonds, and cash in other retirement accounts.

These are six things you should know about when considering gold IRAs:

1. Traditional or Roth IRAs — You can set up your gold IRA as a Roth or traditional IRA, according to American Bullion. A gold Roth IRA would be taxed now with no taxes during withdrawal, while a gold traditional IRA would only be taxed at the time of withdrawal.

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2. Rollovers — You can roll over retirement plans from previous employers into qualified retirement accounts without penalty. You can do the same with a gold IRA, moving a 401(k), for example, into the fund.

3. IRS approved — Gold IRAs, like traditional and Roth IRAs, must be administered by custodians, financial institutions, or trustees approved by the IRS for tax purposes.

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4. Insurance against inflation — Security is often the reason for investing in gold as well as when considering a gold IRA. However, this isn’t a guarantee for people who are retired or about to retire. Gold prices skyrocketed during the inflation of the 1970s but remained relatively stagnant between 1981 and 2000 when inflation nearly doubled, reports Kevin McKean in Next Avenue. It increased more than 500 percent in the first decade of the 21st century. Since 2011, it lost about a third of its value while inflation went up by 8 percent.

5. Negative concerns — Gold has always been volatile and cyclical, so it’s not always the best choice for a retirement account with that uncertainty. However, some investors point out that gold has always been and always will be worth something, Bankrate notes.

6. Diversity — Just like a small allocation of gold in an investment account might be considered, gold IRAs could be a choice if the investor has another retirement account that provides stability. A balanced approach in a retirement portfolio lowers the risk of losses.

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Gold IRAs are alternate ways for savings in an individual retirement account. Investors can own physical gold, silver, and other precious metals that aren’t available in traditional IRAs.
gold, iras, things, know
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2018-54-03
Tuesday, 03 April 2018 08:54 AM
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