No matter what life stage you are in, it is never too late to start organizing your finances and planning for retirement. Even a small decision today can have an enormous impact on your financial future.
Many people invest in employer-sponsored plans, and even if you’ve done that, you can still roll over to a gold IRA and diversify your portfolio. An IRA, or Individual Retirement Account, allows you to save for your retirement and save on taxes at the same time.
There are different types of gold IRA accounts with various benefits and rules, so it pays to know more about them.
Gold IRA is a retirement investment plan that helps investors grow and protect their savings from unstable economic conditions and market fluctuations. Banks and other financial institutions allow people to invest in gold bars, coins, and other IRS-approved physical precious metals such as silver, palladium, and platinum.
People who don’t want to invest in mutual funds or stocks can use this type of savings account to expand their portfolio and hopefully multiply their finances.
When it comes to making the right investments that protect your savings, gold is an obvious choice. With thousands of years of history, gold remained a reliable store of value, meaning it is a stable investment option, even when inflation affects currencies’ values.
Gold is an excellent hedge against inflation. When other currencies (dollar, euro, yen, and more) lose their purchasing power, gold increases in value. It is an excellent option if you want to protect your savings in the long run.
Another reason you should consider investing in gold is that there is a growing demand for this precious metal. Experts believe that the market will continue to grow in the following years due to the increased use of gold in electronic and medical devices.
Having a diversified retirement plan pays off in the long run. Investing a portion of your savings in gold bars or coins is one of the best ways to diversify your portfolio. Precious metals provide an extra layer of diversification, and gold can protect your funds when governments, markets, and currencies are unstable.
Now that you know more about the importance of investing in physical bars and coins, it is essential to determine which types of gold IRA accounts to invest in to gain financial benefits.
The traditional gold IRA account is one of the most prominent savings plans. It is best for employees who don’t have access or aren’t qualified to contribute to a workplace-sponsored savings plan. It is also an excellent option for people in the same or lower tax bracket when they start making withdrawals.
The standard features of gold IRA include:
If you are looking for a tax-saving balance to the previous type of IRA account or traditional IRA, Roth might be a good option. It is a better plan than a traditional IRA because it allows you to access your funds before retirement.
Some of the critical features of Roth gold IRA include:
Simplified Employee Pension (SEP) is a sub-type of the traditional Individual Retirement Account. Employers fund it for employees who want to avoid the initial startup costs and operation of the conventional savings plan. If you are both an employer and an employee in the company, it is essential to abide by all SEP rules to avoid penalties and complications with the IRS.
The earnings in the SEP gold IRA account grow tax-free. Other features include:
According to the IRS, an individual must earn income to qualify for IRA contributions. However, there is an exemption for married taxpayers. If one of the partners isn’t working or has a meager salary, they can still contribute to their own separate IRA accounts.
The spousal gold IRA is a suitable option for non-working or low-income individuals married to someone who earns an income.
The standard features of spousal gold IRA include:
People who don’t contribute or aren’t qualified for a deductible or Roth IRA account may consider the non-deductible option.
If you or your partner have a retirement savings plan and the monthly income outpaces the limits, you may not be able to deduct your contributions. A non-deductible account allows you to add money into the IRA and still benefit from tax-deferred earnings growth.
Experienced and professional investors who want access to different investments, such as non-traditional businesses or real estate, may consider a self-directed gold Individual Retirement Account. The same rules as Roth and traditional IRAs apply, with one crucial difference — the investments.
Other types of gold IRA accounts limit investments to mutual funds, bonds, and stocks. When you open a self-directed IRA account, you can invest your assets in different precious metals and private businesses from various industries.
Here are some of the things you should know before considering a self-directed gold IRA:
Whether you’ve invested in gold before or didn’t consider the option until now, you are probably familiar with all the benefits this precious metal offers. Even in times of economic instability, you can make significant investments in gold and other precious metals to build wealth for your future.
If you are ready to roll over from your 401k to a gold IRA and diversify your retirement portfolio, now is the best time to do it. Consider one of these types of gold IRA accounts, and based on your investment experience, income, and financial plans, choose the option that suits you the most.
Oxford Gold Group is here to make the transition easier for you. We have years of experience under our belts helping clients across the nation who understand gold’s benefits gold and want to upgrade their retirement portfolios. Our team is here to protect your financial future and advise you on the best ways to multiply your savings.
Contact us today at 833-600-GOLD to discuss the different types of gold IRA accounts, and we’ll help you navigate your way to your financial independence.
INSIDE THIS INVESTMENT GUIDE YOU WILL LEARN:
• How Gold & Silver can protect your savings & retirement accounts
• Types of Gold & Silver products available for Home Delivery
• How a Gold & Silver IRA can protect your Retirement account