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Important Things to Know About Gold IRA

Are you looking to invest in something that could help you fund your retirement and act as a hedge against inflation? If so, a Gold IRA is definitely worth considering, as it can be a great long-term investment, especially if you’re existing portfolio primarily consists of stocks and bonds.

Read on to discover things you need to know about a Gold IRA – what it is, the fees involved and how you can get started today.

What is a Gold IRA?

A Gold IRA is simply a type of individual retirement account (IRA) which is exclusively used to invest in gold or other precious metals, such as silver and palladium. 

You can set it up alongside an existing traditional IRA, and it’s a fairly simple process once you decide which company to use. 

Regardless of which Gold IRA company you use, the gold (or other precious metal) you purchase will be held at a secured depository – and it’s only possible for you to take physical possession of it at the end of your pre-agreed IRA term. 

Should I Set Up a Gold IRA?

A Gold IRA can be a good way to invest in gold and other precious metals, and, in turn, make your investment portfolio more resilient to economic downturns which typically cause the equity and bond markets to tank.

Furthermore, as Gold IRAs can help you protect your savings against inflation in the long run, they can be a great investment for Boomers and other people who are looking to build a nest egg to comfortably retire on.

However, there are other ways to invest in gold and other precious metals which offer the exact same benefits to investors and people planning for retirement. 

For example, you can buy shares in an exchange traded fund (ETF) which owns gold or simply buy physical gold from a dealer, though the latter usually isn’t a good idea as you then have to worry about safely securing it.

Are There Fees?

There are three main fees which you will have to pay when setting up and maintaining a Gold IRA. 

Firstly, you will need to pay a setup fee (usually of up to $100) when getting started. The other two fees – the storage and maintenance fees – are paid annually for every year of your IRA term, though some firms may waive either of these fees for the first year. 

Which Precious Metals Should I Invest In?

Although gold is by far and away the most commonly held precious metal in a Gold IRA, others can also be purchased. Different precious metals have different risk profiles, so it’s important to consider how each one aligns with your broader investment portfolio and goals before going ahead with the purchase.

If you’re looking to invest quite a large sum of money, it might be worth hiring an investment advisor who can help you decide which precious metal to invest in and whether or not utilizing a Gold IRA is the best way to go about it. 

A Quick Summary

  • A Gold IRA allows Americans to invest in precious metals, like gold and silver, without having to worry about storage and security.
  • Some precious metals can be a great diversifier and can make your investment portfolio much more robust.
  • There are several fees to take into consideration when setting up a Gold IRA, including the setup fee and the annual maintenance and storage fees. 
  • Utilizing a Gold IRA isn’t always the best way to invest in precious metals, so it’s worth considering the other options (like ETFs and directly purchasing gold or another precious metal from a dealer.)