If you have a retirement account and you’re concerned about your future’s financial situation, you may have the option to convert a portion of it to gold bars or bullion coins to protect yourself against economic uncertainty, specifically inflation. This much safer strategy is what you call a Gold IRA Rollover.
If you’re unfamiliar with the concept, here’s everything you need to know about a Gold IRA Rollover.
Gold IRA Defined
If you consider moving your retirement funds to another account, it’s essential to understand what the Gold IRA is. In its simplest sense, a Gold IRA is defined as an Individual Retirement Account that gives investors the opportunity to have physical assets such as certain types of precious metals in their retirement accounts. However, these precious metals are only limited to platinum, Gold, silver, and palladium. For example, one of the approved gold assets that you can hold in your retirement portfolio is the American Gold Eagle coin.
The Concept of Rollover
Most people associate the concept of a Gold IRA Rollover to any fund movement from one retirement portfolio to another. However, it’s best to understand that a rollover happens when the money being moved will be given to you, and you have to deposit it in the Gold IRA company. Thus, if you have retirement savings, a rollover takes place by rolling the money you have in your current account into another IRA. In any case, you still need to comply with specific rules and regulations.
Moreover, if you consider rollover as a strategy to get the most out of your retirement savings, it’s also vital to know how to complete a rollover. For instance, the Internal Revenue Service or IRS have stipulated how Gold IRA Rollovers are done:
- 60-Day Rollover – In this kind of setup, you’ll be directly issued with a check for the amount of your rollover. The good thing about this is that investing your funds in another IRA within the 60-day period means no taxes to be withheld.
- Trustee-to-Trustee –This happens when the trustee of your retirement account will facilitate the rollover process to the trustee of another retirement account. When using this method, no taxes will also be withheld.
- Direct Rollover – When using this procedure, you can request your retirement plan administrator for the issuance of the check to be given directly to the IRA which you want your money to be rolled over.
If you’re looking for a trusted Gold IRA company that you can work with, read some online resources like IRA Gold Advisor’s Website to get more information.
Reasons for Investing in a Gold IRA Rollover
Now that you know the standard methods for completing a rollover, it’s time to ask yourself about the reasons why you should start investing in a Gold IRA Rollover. Here’s your guide toward deciding on your Gold IRA investment strategy:
- Loss of confidence in the US dollar and other paper currencies – If you’ve lost your trust in the US dollar, and in different currencies, the best thing you should do is to roll more or less of 10 to 20% of your retirement savings to protect yourself against any drop of the value of the US dollar and other currencies.
- Protection – If you think that you have a bias retirement portfolio when it comes to bonds, mutual funds, or stocks, you can allocate an approximate 5 to 10% of your entire retirement account to certain types of precious metals. This will serve as your reasonable protection and preparation against recession.
- Substantial profit in the future – If you feel that the price of some precious metals like Gold will increase in the next few years, then you should roll over more than 20% of your savings to produce a future profit. However, this kind of strategy takes a lot of risks, which is why it’s safer to go for a lower allocation and make necessary adjustments the moment you feel more comfortable with your investments.
Ways To Find a Reliable Gold Dealership
Before you can actually roll over your individual retirement account into a Gold IRA, you should start finding a trustworthy gold dealership. This is by way of checking their reputation, pricing structure, and the quality of the IRA-approved products. Whether you opt for a local or online dealer, it’s essential to choose the reputable one whom you’ll purchase your coins/bars. Your Gold IRA custodians may help you in the selection process.
Conclusion
If you’re the kind of person who wants to avoid the uncertainty and instability of the stock market, then investing in a Gold IRA Rollover can be an ideal option. And if you don’t know where and how to begin, keep all of the information in this article in mind to help you with the decision-making process.
