Gold and Silver IRAs: Precious Metals as Retirement Wealth Protection

Investing in gold and silver IRAs has never been easier than it is today. Since the dawn of humanity, precious metals like gold and silver have helped to shape and mold society, and as J.P. Morgan so rightly stated: “Gold is money. Everything else is credit.”

Your lifetime of hard work and smart investing is the last thing that you want to have to worry about once you retire. Currently facing record inflation rates, a volatile economy, and a seemingly out-of-touch stock market, protecting your assets is of dire concern.

Securing your assets will help to bring you peace of mind and gain the confidence you need to live out your retirement unabashed and proudly. With that in mind, let us talk a bit about your retirement and what an investment in gold and silver can do for your golden years.

What is a Gold, Silver or Precious Metal IRA?

A gold, silver, or precious metal IRA allows you the opportunity to invest in physical materials – gold coins, gold bars, silver bullion, etc. that are added to your individual retirement account (IRA). It gives you more control over the assets that you own and your future by combining the power of tax deferment with the innate and tangible wealth protection characteristics that gold and other precious metals offer.

Setting up a gold or other precious metal IRA is simple and easy to do without having to sell any assets from your 401k. You can simply and easily rollover (transfer funds) from your existing retirement account. This transfer is free of charge and offers you protection without having to cost you more money.

Gold and Silver IRA Rollover: Decisions, Rules, and Strategy

The stability of the more traditional retirement funding instruments has, as of late, come under some scrutiny regarding their stability and long-term viability. Having a retirement portfolio that leans heavily towards bonds, stocks, and other mutual fund investments, relying mainly on the strength and bargaining power of the US dollar, it may be time to diversify your investments a little.

Have you ever considered a shift to gold and silver bullion or coins as an added portfolio protection measure against inflation, the current economic degradation, and future economic uncertainties? Perhaps now is that time?

Of course, the simple transfer of funds from an IRA to a Gold IRA is an option, rollover is a safer and more tax-advantageous strategy when it comes to shifting around your retirement funding. Let us take a closer look at some of the steps and decisions involved in a Gold, Silver, or other precious metal IRA rollover.

Rollover and Transfer Rules

The most important point to note here is how the Internal Revenue Services (IRS) make the distinction between a rollover and a transfer and the possible effects that it may have on you and your decision.

Rollover: In a rollover, the money being moved or shifted is first paid out to you and is only then deposited into another account.

Funds Transfer: During a funds transfer, the original custodian of the IRA transfers the money directly to your newly appointed IRA custodian without you ever actually seeing the money.

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Rules for Gold IRA Rollover

In a Gold IRA rollover, the funds received by the investor must be deposited into the new custodian or Gold IRA Company within 60 days of being received. If this is not done within the specified time frame, a 10% early withdrawal penalty is enforced on the money and is seen as a taxable withdrawal, and only if the person withdrawing the funds is younger than 59 1/2 years old. A Gold IRA Rollover is limited to one per year (12-month period).

Rules for Gold IRA Transfer

With a direct custodian-to-custodian IRA transfer, there is no 60-day transfer window rule since the money is never received, merely transferred. Transfers are usually made directly between the respective IRA custodians, with the original custodian issuing a check to accomplish the transfer and sending it out via mail.

Check Your Employer’s 401K

401k’s come with slightly different rules regarding rollovers and transfers and should be checked first. Some employers do not allow investments in gold as part of their 401k, so make sure that you understand your employer’s 401k plan. Knowing what these restrictions are early on is going to help you to plan better.

Gold and Precious Metal IRA Investment Strategy Decisions

Once you decide to invest in a Gold IRA Rollover, there are a few important things that you need to understand regarding making effective strategic decisions that affect your long, and short-term planning needs. One question that you must ask yourself is: “What is my main reason for wanting to invest in gold or silver bullion?”

1. Protection and Diversification

You may feel that your current portfolio leans a little bit heavy on the sides of stocks, bonds, and other mutual fund options, and if you do, think about this. An allocation of merely 5-10% of your entire portfolio into precious metals will help you to effectively protect and diversify your portfolio.

2. Loss of Trust in the USD

Paper currencies have, of late, not been the backbone of investor confidence, and a broader allocation of one’s portfolio is a common strategy to hedge these inherent risks.

3. Future Profits

Following the movements of strong net worth investors has the potential to generate large profits in the foreseeable future, generating additional investor confidence and the potential for unlimited growth.

Notable Restrictions

When it comes to the purchase and investment in types of gold or silver bullion, the IRS has put some strict rules in place to govern and control these transactions. Coins need to be minted to a minimum level of purity, 99.9% or better, and this includes the American Gold and Silver Eagle, the Canadian Gold Maple Leaf, The Australian Philharmonic, the American Gold and Silver Buffalo, and other similar coins, including the Credit Suisse Gold Bar.

Benefits of Investing in Gold and Silver IRAs

The benefits of investing your cash in precious metal IRAs go far beyond simply having peace of mind. They are a store of value, a medium of exchange, and a source of beauty.

Let’s discuss some of those benefits right now.

A Stable Investment

Precious metals have a distinct advantage over any fiat money that is circulating today in that they exist independently from any government. There is no fiat currency in the world that is backed by any commodity, such as gold, their value being derived from the amount of money in circulation and the stability of the issuing government.

No matter how unstable the government may be or become, the value of gold and other precious metals maintains their value, regardless.

Rising Demand

Governments, private investors, and central banks all recognize the economic benefits of investing in gold and silver, and it is something that governments are investing in right now.  Although gold and silver are not essential for the financial sector to function, they are both irreplaceable in today’s modern manufacturing processes, and it is something that governments cannot simply reproduce. They cannot print more gold.

Independence

Holding gold, silver and other precious metals adds a certain level of protection for you against government overreaching. Precious metals are not controlled by any one government or financial institution, meaning that they hold their value no matter the crisis that ensues. Furthermore, gold and silver afford their owner the freedom to easily move their wealth from anywhere to anywhere else in the world. Gold equals freedom!

Liquidity

Accessing your retirement savings should not come with hefty fees for early withdrawal, not to mention being locked into long-term commitments. Gold and silver offer you instant liquidity. You are able to convert your assets into the currency of your choice at the drop of a hat without losing a substantial amount in the process of converting.

Physical Asset

Unlike stocks, bonds, currency, and crypto, gold and silver are physical assets that you can take with you wherever you go. They are not just some number stored on a database somewhere. Gold and other precious metals afford you the option of protecting your own assets and not running the risk of them being stolen electronically without any recourse. Naturally, this gives you, as the holder of such assets, a clear and added advantage in the digital age.

Start Protecting Yourself Today

Retirement is a big decision and is one that comes with more to think about than you may have initially thought, including protecting your accrued wealth from the unexpected. Relentless inflation and a volatile economy are just two of the reasons why you should keep your money safe, not to mention keeping your retirement as pleasurable as you had imagined. So for peace of mind and for the enjoyment of the rest of your life, it may be a great idea to invest today and really taste the freedom that you have worked so hard for and so rightly deserve.

Photo by Scottsdale Mint on Unsplash