Which gold bullion coins are approved by the IRS for IRA investing?

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The stock market is very risky. There have been two major stock market crashes since 2000. The crash of 2008 wiped out many people’s retirement portfolios. There are many financial experts who suggest to diversify into precious metals. The most popular metals are gold and silver. It is now so popular that the IRS even allows people to include gold bullion in retirement accounts.

If you are looking to invest in gold and want to purchase some for your IRA, then you have to understand which coins are appropriate. The IRS does not allow all gold coins to be used in an IRA account. Only certain types of gold coins are allowed into an tax sheltered accounts.

What Type Of Coins Can I Buy?

The first thing to understand is that only gold bullion can be used in an IRA account. You cannot purchase collectable coins such as the old numismatic coins. The IRS only allows bullion coins meeting certain purity levels. They also limit the types of bullion. The gold bullion coins must be 99.9% pure or higher, such as the American Eagles or American Buffalo gold coins. These coins are sold as stores of gold and not traded as collectible coins like many numismatic coins.

What Size is Best?

In order to own gold coins in your IRA account you will have to purchase an American Eagle or Buffalo. You can purchase them in different sizes. Some people purchase the largest size, the 1-ounce. Other people purchase the 1/10 of an ounce. It is usually a better deal to buy the 1-ounce coin, but some people invest a little at a time so the 1/10 is their preferred method. The advantage of purchasing the Gold Eagle or Buffalo in 1-ounce lots is that you will pay a lower premium and they are easier to catalog.

What About Foreign Coins?

While some people look for deals when it comes to bullion and purchase Chinese or Mexican bullion, these coins are not allowed in an IRA account. They do not have a high enough amount of gold. Likewise, the Krugerrand, which has always been a popular choice, is not allowed into an IRA account. It is perfectly fine to own high grade forigen bullion, such as the Krugerrand, but you cannot own them in an IRA account.

How Do Keep My Coins Safe?

So, you have the option of buying either the American Eagle or the American Buffalo. Most financial experts suggest that you purchase bullion in 1-ounce size lots. The next step is to find a trustee account. The IRS does not allow people to personally keep their gold coins if they want to include them in an IRA plan. If you simply want to own gold coins, then you can keep them in your home. But if you want to include them in a tax-sheltered account such as an IRA, then you will need to find a trustee account. These are places where you will send your gold coins and they will hold them. They charge a very small fee for this service.

How do I get started?

If you have a retirement account such as an IRA or 401k, you can roll them over to gold and silver today. Most firms require a minimum investment of $5,000 while some require $10,000 or more in order to open a precious metals IRA. We highly recommend that you do your research online and find the best rated firms to work with. Be careful as some companies have been accused of fraud and are currently being sued. Check out this article to learn how to find the proper IRA company, or request our free kit on the right hand side: what to look for in a gold IRA company.

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Posted in Gold 401k, IRA

What to Look for in a Gold IRA Company

When it comes to investing one’s money, there are many avenues in which to take. For many investors, one of the most popular options is investing through a Gold IRA. Investing through an IRA gives the American investor a plethora of advantages, one of the main ones being the tax-saving aspect. Before investing in a gold or precious metals IRA, it is important to find a reputable custodian or trustee that will handle the transfer process.

The IRS has laid out some strict rules when it comes to gold investing, which is why it is important to work with a firm that understands these rules and can help you properly convert part (or your entire) IRA to gold investments. Doing the process the wrong way can result in hefty penalties and thousands of dollars in wasted money.

When deciding to use one of these companies, it’s important to look at several factors such as positive reviews, their track record, accreditation, certification and much more. All of these factors together will let an investor know if the company is reputable and will be a good place to trust with their hard-earned money.

A Gold IRA company with an impressive track record and positive feedback from their clientbase is certainly one to be given serious consideration. Giving detailed information about their product offerings and current market happenings is also a good sign, showing they are knowledgeable about the needs of their clients.

Working with knowledgeable financial representatives is also crucial to investment success with a Gold IRA company. Representatives who have a proven track record of success with clients, are aware of current market trends and are willing to listen to client’s needs and tailor an investment program specifically for them are the best ones to seek out and develop long-term relationships with. From the investor’s standpoint, asking the rep questions about their experience, investment philosophy and more can provide insight into whether the person will be a good match.

Accreditation and certification are also key components of choosing the right Gold IRA company. Choosing a company that is fully accredited by the Better Business Bureau with an A+ rating is best, for it shows they have had no major complaints filed against them by dissatisfied clients. Also look for any specific industry certifications that companies or reps may have, indicating they are committed to continuing education to better serve their clients. Belonging to trade associations such as the ICTA, known as the Industry Council for Tangible Assets, is an indication the company stays on top of ever-changing laws and regulations, particularly those associated with the Internal Revenue Service.

When dealing with a Gold IRA company, it’s important to make sure you have a full range of precious metals from which to choose. Dealing only with those who offer gold and silver as the only two choices usually indicates they don’t have the client’s best interests at heart. Companies who also offer platinum and palladium along with gold and silver give their clients more choices in investments, letting investors get fair and balanced information to make the best choices for themselves.

Because not all precious metals are the same, it’s important to work with reps who know how to best maximize them for their clients. Choosing coins or bars in various classifications will help investors participate in a variety of investment platforms, leading to maximum results. Whatever Gold IRA company an investor chooses, it ultimately boils down to the level of trust between client and company. However, if using the services of someone who’s trusted and knowledgeable the chances for success go much higher. Investors who do their homework on Gold IRA companies will find the hard work pays off when it comes time to examine their portfolio and net worth, making it a win-win situation for everyone. Check out a more detailed review of some of the best IRA custodians and companies in America in this article from GoldIRAGuide.org.

 

 

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The Fed Deters Investors from Buying Gold: Is It Working?

fedIf you’ve been watching the stock market lately, you’ve probably noticed a sharp drop on the price of gold and silver. The latest reports show that the Fed and Central Banks are manipulating the price of gold and silver. Clearly, this is evidence of market rigging by the Fed. However, it’s not just the government who is working to inflate the stock market price of the dollar. In order to inflate stock markets and show better stock prices, the Fed has deflated the value of precious metals, which causes great concern. The other achievement is the elevation of the US dollar. However, these actions are ruining market sentiments to purchase bullion and other precious metals.

Is It Working

Currently, this tactic against gold and silver is working and has improved stock and commodity prices. Real estate is on the up as well as the bond market. However, if you consider that a person was able to buy 250 oz of silver for the Dow Jones Average and today, you’d have to 650 oz of silver to purchase the average, it’s over 150 percent increase. That’s an extremely sharp rise to contend with, and for those who trade and invest mostly in precious metals, the latest news is unsettling. However, markets always fluctuate, and the stock market will eventually improve the price of precious metals throughout the year.

What to Expect Next Quarter

You can’t make any short term moves on the stock market just yet. The price of gold and silver is guaranteed to go up, as the trend charts show. The price of gold was extremely high in at one point when it was $1,900 per ounce. Now that prices have fallen, it’s just one of many times throughout the year when prices fluctuate. Extreme trends don’t stick around and usually reverse quickly. It’s safe to say that within a short period of time, gold and silver will continue to climb back to their original standing.

Current Market Sentiments

There isn’t a lot of faith in precious metals, but there is growing faith again in the stock market because it shows improvement. People see their investments and pension plans are safe when the economy isn’t entirely recovered. Overall, people still want to invest, and it’s allowing people to invest in other markets. For now, the economy is following the bear market trend, which usually means that at the top, investors are buying. However, it also means that the bubble could pop and the market goes away, which means there won’t be any more buying. That isn’t the case with this bear market trend. In a gold and silver bear market, it’s actually the opposite.

What to Do Now

Investors are incredibly frustrated at the lack of improvement in gold and silver. However, analysts have shown that this drop is only temporary. Many investors wonder if they should hold onto precious metal investments, and yes, it’s important to keep your investments and wait out extreme trends. You can always follow this simple line to help you through your investments: When you’re happy, you should sell, and when you’re feeling sick, it’s time to buy. It’s also essential to recognize that there is true value in gold and silver beyond the paper price.

Speak to a financial analyst

If you are still unsure about whether you should invest in gold or not, you should perhaps speak to a financial analyst that will take the time to evaluate your current investment portfolio and will offer recommendations as to whether or not precious metals can help you balance out your assets. Gold and silver are in high demand by many industries, and some of the world’s biggest mines are being depleted. The price is bound to increase back to its previous high and even beyond. The big question is: when?

 

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Posted in gold price

Despite plummeting prices, gold is still a great investment

Many people have been worrying about their gold investments since the price dropped to below $1,400 per ounce yesterday. Many are questioning whether gold is still a safe investment. The short answer is: yes, gold is still one of the best types of investment in today’s troubled economic landscape.

Why You Should Still Consider Investing in Gold

Unlike many other investment options, gold has real life uses. It is being used in the electronics industry due to its superior conductivity. It is being used in dentistry to create gold fillings, alloys and bridges. It is being used in the computer hardware industry to mount memory chips and microprocessors to motherboards. It is being used in many other industries such as aerospace, architecture, medical equipment and many more.

Analysts Are Betting on the Rebound

According to many financial analysts, the price of gold is bound to increase in the next few days. Unlike other types of investments, the gold value can never drop down to zero. Keep that in mind. Stocks, bonds, paper currency, bitcoins and virtually every other type of investment can go down to ZERO, not gold. Why? Simply because gold is a material that is needed by many industries and that is highly difficult to extract.

The various uses of gold

gold is used in electronics to mount chips, microprocessors and to create high quality connectors and wires. Gold is used in the medical industry as a treatment for various medical conditions. Gold is used in dentistry to create gold bridges, alloys, fillings and braces. Gold is used in architecture and glass-making and is a big part of many modern skyscrapers. Gold is used in many other items that people don’t know about. Because of that, the precious metal will always be a valuable investment. Learn more about the various uses of gold in this article.

Considering owning gold through your IRA

Investing in gold through your IRA retirement account is certainly one of the best ways to own gold. All you have to do is set up separate self-directed IRA which you will use for precious metals investing. A firm like Regal Assets can help you through every step of the process. They are based in California and have helped thousands of American investors set up gold-backed IRAs.

How much gold should I buy as part of my IRA?

This is something you will need to discuss with your financial advisor, but generally we recommend 5% to 20% of your total portfolio should be dedicated to precious metals. 5% if you want to be on the conservative side, 20% or more if you’re willing to take on more risk. Whatever percentage you choose, make sure that you feel comfortable with it and that you have done your thorough research prior to committing to it.

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How Much Gold Does My Retirement Account Need?

howmuchgoldMaintaining a well rounded portfolio is ideal for each type of investment you own, whether the investment’s purpose be for short term or long term goals. If you have an IRA, it is especially important to evaluate your allocation of assets. Your investment manager, which may be yourself, needs to consistently determine if your allocation is meeting your long term needs by its current performance and its projected performance.

A good example of allocation, depending on your age and goals is to own a combination of stocks, real estate, fixed income investments, cash such a money markets and CD’s and precious metals such as gold. Of the listed options, gold has very little volatility and has increased in value over 150% in the last twelve years. Gold is not influenced by the ups and downs of the marketplace like other investments. It also does not increase in value at a fast pace. It takes the patient investor to allow gold the time it needs to increase in value.

If you choose to add gold to your IRA portfolio, you should be aware of its unique properties, so you can make an informed decision about how much to own.

    • Gold is one of two very precious metals: Gold and Titanium
    • Gold is not affected by market conditions
    • Gold is a long term investment only
    • Gold’s value will never drop below zero
    • Gold’s value tends to rise with domestic and world turmoil: inflation, rising rates, etc.

Depending on your investment horizon, you, the investor will profit more or less from the ownership of gold. If you’re very young, in your 20’s, for example, gold is an absolutely great investment for you. If you’re in your late 40’s, gold is still a good investment, especially if you’re expecting high growth over time. The older investor, someone in their 50’s and 60’s should realize buying gold is more about maintaining the value of your IRA rather than about growth of your IRA.

How much gold should you own in your IRA investments? This is definitely based on the amount of time the investment is held. Young investors can afford to hold gold for many decades reaping a sizable return on their investment. Even with this potential gain, they wouldn’t want to lose out on the growth most investors gain in the traditional market when they have a long horizon. A good mix might be to have 35% invested in gold,40% in stock, 15% in real estate, and 10% cash. Older investors with at least 10-15 years before retirement might consider 25-30% in gold, 50% in fixed investments, 10-15% in stocks and 10-15% in cash. Those in retirement should consider holding onto 15-20% gold, 50% fixed investments and 20-30% cash. Learn more in this post.

Your age, investment risk tolerance and long term goals all determine the suitability of gold as an allocation within your IRA. Depending on your need to sell your assets, having gold can be an excellent investment. In the accumulation phase of building your IRA, you have far less need to sell your gold, but in retirement, this may become a necessity, so reduce your gold holdings as you age.

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Posted in IRA

How to Rollover Part of Your IRA to Gold and Silver

Investing in gold and silver are sound secure investments. Gold is 45 more times its value than in 1970 and silver is also considered to be a safe affordable investment. Below are the steps you can take to rollover all or part of your IRA to what is called IRA gold and silver. Employing the services of a firm such as Regal Assets is probably the safest and easiest way to complete your IRA rollover. There are certain criteria you must meet before you can rollover your IRA funds. Setting up a self-directed IRA account is required.

Who Can Rollover IRA Funds Without Paying Fees and Penalties?

You must no longer work for the employer who set up your IRA account. If you’re working for another company, you must be at least 59 1/2 years old or older to avoid paying taxes and early withdrawal fees and your employer must discontinue the IRA retirement account. You can do this only once yearly and there is no limit to the amount of money you can rollover, although, professionals suggest rolling over enough to make it worth your while financially. They recommend $5,000.00. or more, although you can rollover as little as $200.00.

How do You Rollover Your IRA into Silver and Gold?

Professional investors says that investing in silver and gold ensures a safe secure retirement investment. The money you rollover from your IRA, if you meet the criteria above, is a tax-free investment because it is a liquid asset. If your IRA custodian releases your IRA funds quickly, the rollover process can be complete in as little as 15 days. You will be charged close-out and maintenance fees, plus you will be charged a fee by the company who handles your rollover account. This company will assist you in filling out the appropriate forms for your IRA rollover.

A Self-Directed IRA Account

You will be asked to fill out a self-directed IRA registration form. This form is sent to your current IRA’s custodian and a letter of acceptance will be mailed to your financial institution. This is a transfer request form that states the type of rollover you’re interested in and how much of your IRA you would like to rollover. It includes your personal information and the information required for your beneficiary such as their name, date of birth and social security number. You must also read and sign a shipping agreement and an account agreement. The shipping agreement states the details involved in shipping your investment to an approved IRA depository. The account agreement states liability limitations, payment information and the purchase price of your new investment.

What Types of Investments Should you Make?

IRA regulations changed in 1997, permitting investors to purchase a variety of boullion coins. Before this date, investments in gold and silver were limited. Silver Maple Leafs and American Eagle Silver Dollars are both permitted, although silver coins dated before 1965 are not permitted. Gold coins that are eligible include the American Eagle Gold Dollars, Gold Maple Leafs, Philharmonikers, Kangeroo Nuggets and the Perth Mint’s Lunar Series. The gold coins must be 99.5% gold, the silver coins must be 1 troy oz. of 99.9% silver. These are IRA regulations.

Investors are choosing IRA rollovers to gold and silver IRA’s because they are tax-deferred and they are safe, ensuring the investor of a sound profitable financial future. Precious metal IRA’s are considered by professionals to be a wiser investment than a traditional IRA. The value of gold, as we all know, has grown tremendously over recent years and silver is also a sound investment. It is affordable and its future looks good.

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Benefits of Investing in Gold through your IRA in 2013

If you have been wondering where to put your money in today’s troubled economic landscape, you are at the right place. Like many national banks and high net worth investors, we believe that gold and silver are the best types of investments you can make in 2013.

Why precious metals?

Simple answer: because nothing else has shown the same track record of stability  While investing in gold or silver won’t make you rich overnight, it certainly won’t make you poor. Unlike stocks and bonds, the gold price has never dropped to zero, and never will. Gold supplies on earth are limited, and until we develop the technology to be able to mine other planets, the demand will always be higher than the supply on the blue planet.

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2013 IRA Rollover

If you have an IRA or 401k that doesn’t allow you to hold precious metals such as gold and silver, we highly recommend opening a self-directed IRA on the side. You are allowed by the government to open a second IRA. This self-directed IRA can be used to hold gold bullion coins and bars. You can also opt for Golf EFTs or investing in gold mining stocks. You will be better off discussing these options with an experienced and trustworthy gold broker or custodian.

Diversification is Key

in 2013, the keyword is diversifaction. Putting all your eggs in the same basket can cost you a lot. Even if a stock looks promising, in today’s volatile economy and political landscape, it can drop to zero overnight. Experts recommend dedicating 15 to 20% of your asset portfolio to Gold. The rest is to your discretion. Some billionnaires have invested up to 40% of their assets in precious metals. Discuss your best options with a trustworthy financial analyst.

 

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Posted in IRA

How to Invest in Gold Through Your 401k

While uncertainty over the trading market is nothing new, given the difficult economic climate currently, there is even more uncertainty and volatility. This can leave plenty of holes in your plans to provide you and your family with a certain level of financial security upon your retirement. There are, however, options that you may have to improve your return on investment.

Most people like to use alternative assets as a hedge against market uncertainty. One popular asset is a precious metal like gold. The question that many have is if you can use an under performing retirement scheme like a 401k to invest in gold.

This is a common question because gold is skyrocketing in value and it looks to continue it’s rise for the foreseeable future. However, investing in gold in a 401k is very difficult, if not impossible, if your 401k doesn’t already have some sort of gold backed stock already. There is a chance you could request that the brokerage house that manages your 401k offer this option, but it’s unlikely that they will comply.

If you are still employed with the company that provides your 401k, you’re kind of stuck, however. If you no longer work for that company, you can turn your 401k into a gold investment.

Cash in Your 401K

You first want to liquidate your existing 401k. Once your 401k is liquid then you will want to look for a self directed IRA or for a gold backed IRA. A self directed IRA will allow you to make investments as you see fit, such as gold. With a gold backed IRA, your IRA can hold legal tender gold coins, gold bars or gold related stocks such as gold mining companies.

Find a Gold Broker

You may need to look around as not every brokerage house that offers IRA’s offer gold IRAs. Once you have chosen a brokerage house, you’ll need to roll over your 401k funds into a gold or self directed IRA.

It also important that this step be handled properly. If done correctly, there will be no resulting tax burden. If the brokerage house is less skilled in these rollovers, you could find that you have certain tax liabilities.

Regulations for Your Gold IRA

Lastly, you need to understand that with gold backed IRAs, not just any gold can be purchased. Jewelry as well as collectable gold coins aren’t permitted. The gold owned must be either gold bars or legal tender gold coins.

In addition, once you purchase gold with your gold backed individual retirement account, or your self directed IRA, you are not permitted to hold the gold. This is where the custodian of the IRA will employ the services of a third party to store the gold for you until the IRA matures.

While you may not be able to incorporate gold into an existing 401k, you can turn your 401k funds into gold investments, whether through directly owning physical gold or rolling over your funds into a gold backed individual retirement account. With the rising value of gold, with it being an excellent hedge against market volatility and the fluctuating value of paper money, it may be time to use capital from an under performing 401k and maximize your money’s growth with gold.

Check out this video to learn more about how to do a gold 401k rollover:

Posted in Gold 401k