When planning for retirement, the sooner you start, the better. While the market contains many investment options, not all investments may be lucrative or suited for retirement planning. Many believe that one of the best ways to minimize risk within your investment portfolio and diversify your holdings is with a gold IRA (Individual Retirement Account).
Precious metals like gold, silver, palladium, and platinum may offer investors a way to plan for their golden years and potentially safeguard their wealth against external factors like economic uncertainty, market fluctuations, and inflation.
At Oxford Gold Group, we provide a fast, secure, and convenient way for clients to invest in a precious metals IRA, whether they want gold, silver, or non-traditional precious metals like platinum or palladium. As one of the top-rated gold investment companies, our Account Managers will provide you with the knowledge and information you need to help you decide if investing in gold and other precious metals is right for you.
A gold IRA, also known as a precious metals IRA, is a self-directed IRA (individual retirement account) that lets you use gold or other IRA-approved precious metals as a retirement investment. While a gold IRA has the same rules as a traditional IRA regarding distributions and contribution limits, the two accounts must be separate.
While many people with a precious metal IRA fund it with physical gold like bullion coins or gold bars, certain paper assets are also eligible for funding self-directed IRAs, including:
Unlike traditional retirement accounts, conventional brokers cannot set up a gold IRA account. You’ll need the help of a dedicated gold IRA company to handle your account, like us here at Oxford Gold Group.
The top gold IRA companies offer clients different choices when setting up a new precious metals IRA. The three account types include SEP, traditional, or Roth IRA accounts:
SEP IRAs, also called simplified employee pension plans, are for self-employed individuals or small business employees. The best benefit of a SEP IRA concerns taxes: you’ll only face penalties when you make retirement withdrawals, not for contributions. However, the IRS has strict contribution limits for this retirement account.
A traditional IRA allows tax-deductible contributions up to a specific limit. If you exceed that amount, any additional contributions will incur a 6% penalty tax. You can fund a traditional IRA with pre-tax dollars, and your earnings and contributions are tax-deferred. However, you will have to pay taxes when you eventually remove your retirement savings.
A Roth IRA requires contributions from post-tax money, so it lacks the same immediate tax benefit as a SEP IRA. However, you won’t have to pay tax on withdrawals after you retire.
A self-directed IRA holding gold or other precious metals provides many benefits for investors.
If you’re unsure how to invest your retirement savings, consider the many advantages these IRAs provide:
A gold IRA offers many of the same tax benefits as conventional retirement accounts, like a traditional IRA. While your income bracket will affect whether your contributions will be tax-deductible, most people are eligible to grow their wealth tax-free until retirement. The investor will only have to pay taxes on their IRA funds upon distribution. Furthermore, they’re subject to the marginal tax rate instead of the higher 28% collectible rate.
The American economy will always experience periods of change, both positive and negative. However, the market has been particularly volatile in a post-pandemic world, and inflation is rising virtually unchecked. Those uncontrollable factors directly influence the value and yield of conventional IRAs. When the economy drops, traditional IRAs drop with it.
However, those same economic factors that can weaken your existing retirement accounts often have the opposite effect on precious metal prices. In fact, even though gold prices can change dramatically, the metal is an excellent inflation hedge and offers vast growth potential. In times of market volatility, demand for actual gold and silver skyrockets, as does their inherent value.
Building a retirement portfolio with precious metals offers a safe haven against the unavoidable risk of paper assets. By investing in physical gold bullion or coins, you’ll have tangible assets that will retain their value, even when your stocks or other paper investments plummet.
Every investment carries some form of risk, and portfolios containing a single investment source are particularly vulnerable to losses. However, building a diverse portfolio with multiple investments can help you achieve long-term growth and maximize yield. If your current retirement portfolio needs an upgrade, gold IRA investments provide a practical and relatively low-risk solution. Whether you want to fund your IRA with physical bullion, gold stocks, or ETFs, we can help you minimize risk by diversifying your holdings.
At Oxford Gold Group, we’re proud to be one of the leading choices for gold investments and precious metal IRAs. We know that navigating the world of investing can be challenging, and we’re here to offer our extensive knowledge and experience when you need help with your retirement fund.
For more information on how a gold IRA can help you save for retirement, please don’t hesitate to reach out to our team. Call the Oxford Gold Group today at (833) 600-GOLD to start growing your wealth with a gold IRA.
As a well-respected gold investment company, we believe everyone should have access to a safe, confidential, and convenient way to buy gold for an IRA. When you’re ready to fund a new gold IRA with Oxford Gold Group, you can expect the process to be straightforward and hassle-free. Here’s how it works:
After you create an account, you’ll need to determine which gold product will work best to fund your new IRA. Only certain forms of precious metals are IRS approved for use in a gold IRA, including gold and silver coins, rounds, proofs, and gold bullion bars. If you’re unsure which product will work best for your needs, your account manager can help you decide.
You have three options to fund your gold IRA: direct cash contributions, a tax-free rollover, or an IRA transfer. However, you can’t use physical gold, coins, or precious metals that you already own to fund your IRA directly.
Alternatively, you can invest in gold directly to fund your account. Or, you can use an IRA rollover or fund transfer and liquidate those funds to purchase your gold for an IRA contribution.
The Internal Revenue Service (IRS) forbids storing precious metals from an IRA at home. Instead, you’ll need to choose a third-party depository for storage. At Oxford Gold Group, we partner with Brinks Global Services and the Delaware Depository Service Company (DDSC). Both facilities are safe, climate-controlled, and privately owned. Plus, they offer comprehensive insurance policies for protection and peace of mind.
Before you fund a gold IRA, consider all the facts regarding your new investment. First, a gold IRA has higher fees than a conventional IRA, including setup, transaction, custodial, and storage fees. Another consideration regards distribution. You can remove your money without paying gold IRA fees once you turn 59 years and six months. However, early withdrawals incur an extra 10% tax.
The IRS only approves certain types of precious metals for investors to fund an IRA. Currently, only gold, silver, platinum, and palladium are eligible. Furthermore, the metal you purchase must meet the following conditions:
A gold IRA rollover is quite simple. Essentially, you take an existing retirement account, like a 401k, SEP IRA, or Roth IRA, and convert it into gold coins or bars. During the rollover process, you withdraw the funds from your existing account and have 60 days to fund the new IRA with a different custodian. Here are some important rules to remember before you start a rollover:
When moving funds from a 401k from your current employer to a gold IRA, don’t forget to check your employee handbook for applicable rules regarding gold IRA rollovers.
Investing in your financial stability and quality of life during your retirement years isn’t something to take lightly. Partnering with a reputable and trustworthy precious metals investment company to handle your IRA is crucial to achieving long-term success. When researching and comparing the best gold IRA companies, you should look for certain qualities and characteristics, including:
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