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How To Hold Physical Gold In An IRA

Starting An Individual Retirement Account

Times are tough and it is getting even tougher, the global economy is slowing down and the fear of the novel coronavirus turning into a pandemic are driving investors to hold their investment. Stock markets are showing a steady trend so far. Fear and panic so far have not caused the markets to go into a free fall. Gold, however, is now climbing.

The fear of a financial crisis induced by the coronavirus is driving investors toward safe-haven investment options and gold is the precious metal of choice for investors when it comes to a safe haven. Since the investors are now more and more interested in gold, it shows that there is uncertainty and so in such a situation, if we look at people who save up their income for retirement and keep them in traditional IRA or 401(K) accounts are at risk of loss, just like 2008.

If a financial crisis hits, the retirement savings funds or 401(K) accounts are going to suffer in the same manner they suffered back in 2008, therefore it is imperative for people with their retirement savings to think fast and think sharply about their savings.

The easiest alternative available right now is of transferring their savings into a self-directed or gold IRA, where they can convert their savings into gold and thus get protected from any financial crash or economic meltdown. Moreover, they will also experience capital appreciation because once the financial crash hits, the price of gold is going to skyrocket.

How To Set Up A Gold IRA

Setting up a gold IRA is a very simple process. If you have already got a 401(K) account then you should do a quick check-up with your employer or fund manager about the gold IRA rollover. Some employers do not allow it, while some do. It is always better to check it up first to prevent any legal issues later after all your retirement savings are on the line.

In order to set up a gold IRA, you need to open up a gold IRA or self-directed IRA. For this, you will have to first choose a gold IRA company of your choice. There are many companies in the market to choose from. They offer different rates and services in order to differentiate their products and services from each other. It is usually better to do a quick search on the internet about the company you are interested in. Look testimonials, have a look at their website to learn about their services, terms, and conditions. Once you are satisfied, you can contact the company and they will walk you through the step by step process of setting up your gold IRA.

It usually takes two to three business days to set up an account, once your account is approved and set up, you will be given an account number and some other details. You are now ready to transfer your savings from your 401(K) to your new gold IRA.

How You Can Perform A 401k To Gold IRA Rollover

You can either transfer your funds directly through a bank transfer or you can roll them over. If you go for a rollover, you will first have to withdraw your funds from your current 401(K) and then you will have a period of 60 days to deposit them into the gold IRA. If you do not deposit your savings within 60 days, they will become liable for tax and penalties. So better be safe and deposit them within 40 days into your gold IRA.

So, one phase is now complete. Now you need to think about buying gold but before you can do that you need to set up a gold custodian. Yes, under IRS rules gold in a gold IRA cannot be kept in person it has to be kept in the safe custody of an authorized custodian. Usually, banks, credit unions, and brokerage houses can act as custodians. Take a much time as you need to decide upon a custodian because your retirement savings are on the line.

Put Physical Gold Into A Gold IRA

Once you have chosen your gold custodian, you can now put physical gold into your gold IRA. For this, you will first have to look for a good gold seller or a broker. These days you can choose from a lot of sellers. A lot of sellers and brokerage houses now sell online, making it easier and more convenient. Care must be taken at this step.

Carry out market research to look for the best gold sellers and brokers, do not settle for someone who offers look too good to be true. You can check the gold rates and see which broker is selling close to the gold rate. If anyone is selling at an unusually low rate, this means a big red flag. You should also be careful about the delivery time. Most top of the line brokers will ship your order in 2 – 4 business days. If the broker says that it will take 7 – 9 days or more than know that the broker is trying to speculate over the price of gold and your shipment may get delayed beyond the time period mentioned.

Once you have chosen the broker, now you simply have to choose the gold bullion you want to buy and have it delivered directly to your custodian. The invoice will go to your gold IRA and be deducted from your funds. In this manner, you can hold as much gold as your savings allow you to buy. You can also liquidate your savings at any moment and cash out, with the cash being in the gold IRA.