Gold IRA investing is relatively simple. Perhaps the only easier investment vehicle is the 401k plan you have with your employer, but easy and simple are not the same. Easy is having your employer automatically set up a 401k as soon as your first paycheck is printed. Easy is having your employer choose to funnel your continuing contributions into company stock or a company fund unless you choose other directions for your retirement savings. If you do choose other directions, however, this is where easy stops. Bonds? Stocks? Mutual Funds? All have different costs and risks and all require constant diligence and supervision, and all can become completely worthless. A gold backed IRA, however, only requires your initiative to set up, funds to fund it, and the payment of a small annual vaulting fee. During my time as a Senior Analyst with ITM Trading my clients often asked questions about gold IRA investing, and here are their questions along with the answers.
Should I Open A Gold IRA?
Decide what is best for you. A gold backed IRA works well for some, and holding rare gold coins works better for others. Quite often, a combination strategy is what the client decided on, and this made perfect sense. Rolling an old 401k or IRA into a gold IRA investment most often triggers no fees or taxes upfront, and people don’t like paying fees and taxes, and it always best to consult your tax planner before taking large withdrawals out of an established retirement account. Holding rare gold coins in your physical possession offers instant access to your wealth, and rare gold coins have tax strategy and estate planning strategy inherent to them that a gold backed IRA cannot offer. The wisest clients I serviced decided to participate in both the bullion market (a gold IRA investment) and also held rare gold coins privately.
Can I Hold Rare Gold Coins In An IRA?
No. There are strict guidelines as to what gold coins can be held in a gold backed IRA and rare gold coins are specifically excluded.
Why Are Rare Gold Coins Excluded From Being Held In An IRA?
There are several reasons, but here are a couple: 1) The Government wants to know what your IRA is valued at in U.S. Dollars. Common gold coins move up and down in Dollar value specifically with the spot price of gold. Rare gold coins are not specifically tied to the spot price of gold, and also gain or lose value due to supply and demand in the free market and are therefore much more difficult to value as each has a unique price. 2) Rare gold coins are classified by the IRS as “Collectible”, and this affords them a completely different set of tax rules that would make liquidating or confiscating your IRA much more laborious on their part.
Can I Hold The Gold Coins Physically Myself Inside Of A Gold IRA?
No. The coins must be held at an authorized vaulting facility. The annual cost of holding your gold coins inside of your gold backed IRA will depend on the size of your portfolio, bu these costs are always modest, especially when compared with the management fees associated with 401ks.
ITM Trading Will Make Owning A Gold IRA Easy
ITM Trading will take all the time necessary to fully explain gold IRA investing to you, and your spouse if need be, so that you can make informed and confident decisions about owning gold coins inside of a gold IRA investment, or rare gold coins in your physical possession. If you choose to do what my wisest clients have done, and play both sides of the fence, you too can exercise the benefits of owning rare gold coins as well as owning common gold coins inside of a low-cost gold IRA.