Once you’ve taken your first steps toward investing for retirement, you might be wondering how to make regular contributions to a gold IRA. Excellent—you’ve come to the right place!
After investing in gold, you can continue fostering your account to generate funds for your future. You may feel intimidated by making contributions, though the process is not much different than a standard retirement account.
Our team at the Oxford Gold Group aims to inform you on the best ways to preserve and grow your savings. We believe precious metals IRAs are excellent choices for securing your funds with stable, tangible assets. Below, we will discuss when and how you can make contributions to your account to take advantage of investing in gold.
Call our experienced team today at 833-600-GOLD if you’d like to open an account or speak with a professional at our Beverly Hills, California, office about your options.
What Is a Gold IRA and How Does It Work?
A gold IRA is similar to a traditional individual retirement account (IRA), allowing you to gradually fund your account until you’re ready to retire and cash it out. Gold IRAs include similar contribution limits and withdrawal restrictions to cash IRAs, though instead of feeding your account with paper, you provide it with gold coins or bars.
Gold IRAs involve making regular contributions. Over time, the gold will increase in value, allowing you to profit despite inflation.
When opening a retirement plan, you can choose between these main options:
● Traditional IRAs allow you to receive tax benefits in the short term since you can write off the amount you contribute during your yearly taxes. Remember that you will need to pay income tax on all these funds when you withdraw.
● Roth IRAs allow you to pay all your income taxes now so that you can receive the total amount when you withdraw the money later.
Benefits of Making Regular Contributions to a Gold IRA
The benefits of making regular contributions to a gold IRA include:
● Tax benefits
● Direct management
● Stable value appreciation
● Lower inflation risks
● High annual returns
How To Make Regular Contributions
Do you want to know how to make regular contributions to a gold IRA? Once you open an account, you can contribute to it in three different ways:
● Add cash: You can deposit cash into the account and then use that money to purchase gold. You may not directly place existing gold into a new IRA because of various government restrictions.
● Transfer funds: You can transfer cash or precious metals from different IRAs into your new account. You may need to liquidate these assets and re-purchase the gold during this process.
● Rollover: You can also move funds from other retirement accounts, like a 401(k), into your IRA. Once the funds are in the IRA, you can purchase the gold.
After opening the account and adding the initial funds, you will need to continue funding it regularly over time. Making regular contributions isn’t difficult, especially if you follow our tips below.
You should begin crafting a contribution schedule as soon as you create your account. Consider your monthly or annual bills, like your rent or mortgage, health and life insurance, vehicle loans, utilities, and credit cards. Next, consider how much money you need for retirement and your desired time frame.
For example, if you need $100,000 to retire comfortably, calculate how much you will need to contribute each year until you turn 65 (or whenever you wish to retire). We recommend contributing a bit above this minimum to play it safe.
Know Your Spending Limits
While contributing as much as possible might sound good, it can land you in trouble since you cannot withdraw the funds without penalties. You should always have reserved savings outside of your IRA that you can depend on in a financial emergency.
You should also understand your daily spending limits within your desired contribution goals. For example, if you want to contribute $5,000 per year, budget your regular activities accordingly.
Make It a Habit
Many people frequently forget about their IRA, leaving it to sit dormant for far too long. You don’t want this asset to go to waste, so be sure to make contributions a habit. Consider making the first day of each month your budget planning day where you can evaluate current bills and decide how much to contribute.
Automate Your Contributions
A great way to never forget a contribution is by setting up an automatic schedule. If you follow this route, ensure that your contribution amount will never exceed your limits. Keep in mind that you can always go in and adjust the contributions as you see fit.
Can I Add Money to My Account Anytime?
You can add money to your account at any time, though you may not exceed $6,000 per year (or $7,000 per year if you’re over the age of 50). Over time, these contributions can add up to a hefty retirement fund. Many people choose to make contributions:
● As a lump sum
You might find it helpful to schedule your contributions simultaneously with other bills or deposits. For example, you could allocate a portion of each paycheck toward your IRA or contribute money each time you pay your mortgage. Regardless of your strategy, choose something that works best for your finances.
Open a Gold IRA Today with the Oxford Gold Group
At the Oxford Gold Group, your financial security is our number one priority. We will walk you through each step of opening an account and funding it so that you no longer have to fret about your retirement. If you’re interested in learning how to make regular contributions to a gold IRA, contact us to learn more about the process.
Reach our Beverly Hills, CA, team at the Oxford Gold Group today by calling 833-600-GOLD or filling out our online form to begin preparing for your future!