In this article, we will guide you on how to invest in a Gold IRA and precious metals like gold or silver coins. The steps we will provide you with will ensure that you make the right decision as you make this crucial investment decision.
Let’s get started…
Select a Custodian – Step 1
The first thing you need to do after making a decision to open a gold IRA is to select a gold IRA company that you will partner with. You can go to Metal Resource for help with choosing one. This company will be responsible for the following things:
- They will open the account for you
- They will be in charge of transferring your funds
- They help you to purchase the precious metals
- They ensure that the purchased commodity is transported to and stored in a depository that is approved by the Internal Revenue Service (IRS)
- They serve as the custodian of your account. In other words, they take care of all the paperwork as well as IRS compliance related to your account
Due to the popularity of gold investment in recent times, several companies serve as custodians. These companies have their peculiar services, fees, and quality of customer care. Therefore, as you choose to invest in precious metals IRA, ensure that you select a custodian carefully to get the perfect deal.
After deciding on which company to partner with, you’ll be expected to fill some paperwork that will enable you to open the account. You will then have to fund your new account. A state-issued identification will be required such as a driver’s license to open this account.
Also, if you had a regular IRA or 401(k) account which you want to roll over, the details of that particular account will be required before the gold IRA can be opened.
Fund Your New Account – Step 2
Once the account is opened, the next thing that is required is its funding. You can only purchase and invest in precious metals after your platinum IRA has been funded.
You can fund your precious metal investment retirement account through any of the following ways:
i. Cash Contribution
This is the easiest method available. All you need to do is to pay in cash, deposit a check, or make a money transfer in the same manner one does with a normal savings account.
One thing you need to bear in mind when you choose this option is that the bank might charge you a fee for such especially if you make a transfer. Click here to learn how to avoid bank charges.
You can only use this method if you own a retirement account such as a regular IRA or a 401(k). If this is the case, you can rollover your assets from such an investment into your new silver IRA.
To do this, you will have to reach out to the administrator who is currently in charge of your retirement investment. They will then instruct you on the steps you need to take to begin the process.
Cash can also be taken from such investments as well into your silver IRA. The condition attached to this is that it must be invested into your precious metal IRA in less than 60 days after the cash is withdrawn. Failure to do so could lead to a penalty of about 10%. You are only exempted from this if you are above 59½ years.
A simple direct transfer will also suffice. For this to happen, a form has to be filled with the administrator in charge of your account or you can ask your custodian to contact them for you.
The funds may take about 5 days before they arrive and they are free from tax charges and penalties. Hence, most folks prefer this method.
Choose Your Precious Metals – Step 3
Once you are funded, the purchase of the precious metal of your choice via your custodian can then be done. Although gold is the most common commodity in this kind of investment, you can also purchase silver, platinum, and palladium.
While you do this, you must ensure that you comply with the purity standard as well as the type of item that can be purchased as set by the IRS. Visit https://en.wikipedia.org/wiki/Gold_IRA / to find out more about IRS-approved gold.
How the purchase will be made is dependent on the custodian you chose. Sometimes, the company sells metals approved by the IRS. Hence, you can easily purchase bullion or coins from them without looking for external sellers. In some other cases, you have to buy from an eternal dealer who will be contacted by your custodian. The funds in your investment retirement account will then be used to make payments for the items they purchase for you.
Monitor Your Investment’s Performance – Step 4
This investment doesn’t end after you have purchased the metal you desire. Instead, you need to continue to monitor how well your investment is doing. Don’t leave it all to your custodian and assume that they will do everything for you.
The policy and system of the company you choose will determine how you can monitor the progress of your investment. Some companies provide online dashboards that allow you to keep track of your investment, whereas some don’t.
You need to find out from your custodian how they can make tracking of your investment accessible to you.
In the article above, we have provided you with steps on how to invest in gold IRA, and precious metals.