What Are the Best Gold IRA Companies?
Gold has been used as an inflation and volatility hedge for centuries. But even if it doesn’t outright insulate you from runaway inflation or market volatility, investing in gold may help keep your portfolio of retirement assets diverse.
Despite its popularity, most don’t know the first thing about investing in gold, or are overwhelmed by the process. Enter Gold IRA companies. These intuitive companies are designed to help investors set up a gold IRA and acquire precious metals all while remaining tax compliant.
Today, we’re going to take a look at the basics of gold IRAs, walk you through the process of opening one, and highlight the top gold IRA companies in the country.
What is a Gold IRA?
Individual retirement accounts, known from here on out as IRAs, are a type of savings account with a few notable perks. You can use them to invest in a variety of assets, and benefit from some notable tax advantages. An IRA is primarily used to store money long-term by those that plan to use it to bolster their retirement. If any of the money is withdrawn before the age of 59-and-a-half though, you’ll incur a 10% tax penalty.
A gold IRA follows many of the same principles as a regular IRA. A gold IRA is a type of self-directed investment account that lets you invest in precious metals whilst also taking advantage of some of the many tax advantages, withdrawal penalties, and contribution limits common with more traditional IRAs.
You don’t have to stick to gold either. A gold IRA is really just a catch-all term to describe the sort of self-directed IRA that allows you to purchase precious metals with your pre-tax income.
What is a Gold IRA Rollover?
Those that already have a defined-contribution account can move some or all of their funds to a gold IRA without incurring a tax penalty. That’s called a gold IRA rollover, and it can be done with your existing IRA, 401(k), 403(b), or your thrift savings plan.
To avoid the penalty, the roll over must be completed within 60-days. Thankfully, most gold IRA companies can take care of any gold IRA rollover requests on your behalf.
How Do You Open a Gold IRA?
Opening a gold IRA starts with the establishment of a self-directed IRA. Self-directed IRAs are a variation of the traditional IRA that lets the investor manage it on their own. Gold IRAs, also sometimes referred to as precious metal IRAs, do require a few extra set up steps.
Doing it on your own is complicated. It involves opening a self-directed IRA, securing a broker to buy the gold, and securing a custodian to create and administer the account. It’s a multi-tiered process that, if done incorrectly, can result in a multitude of hidden costs or tax troubles.
Which is why most prospective gold investors turn to the many gold IRA companies. Gold IRA companies will help you set up your self-directed IRA and secure both a broker and a custodian to your gold IRA. The process is much simpler, faster, and way more convenient.
What Are the Best Gold IRA Companies?
Those interested in hiring a gold IRA company would do well to start by familiarizing themself with the ones at the top of the industry. That being said, the best in the business doesn’t necessarily mean that they’re the best for you. So be sure to do your own research, and only hire the one that meets your specific needs.
According to Yahoo Finance, these are the best gold IRA companies in 2022:
- Pros: Low fees and customizable storage options.
- Cons: High minimum deposit.
Birch Gold Group
- Pros: No fees for those that transfer over $50,000 in the first year.
- Cons: High minimum investment with the potential for hidden fees.
Augusta Precious Metals
- Pros: Very easy to set up and competitive prices.
- Cons: A $50,000 minimum deposit.
- Pros: Low minimum investment ($2000).
- Cons: Relatively new to the marketplace.
- Pros: Lots of investment options.
- Cons: Rolling over an existing IRA can sometimes take months.
Are There Any Other Ways to Invest in Gold?
Hiring a Gold IRA Company isn’t the only way to grow your retirement with gold. You don’t necessarily have to open a Gold IRA either. There are indeed lots of ways that a savvy investor can diversify their nest egg with the popular precious metal.
Buying shares of gold mining companies or gold royalty companies is an indirect way to cash in on gold. These “gold stocks” usually increase alongside gold prices.
Gold ETFs and gold mutual funds are also popular amongst commodity investors. These products are widely available and allow investors to diversify their gold holdings by grouping and selling a collection of gold-related stocks together.
Find What Works For You
Making educated investment decisions with your hard-earned retirement savings is essential to retiring with enough money to live comfortably. The learning never has to end either. Actively exploring your available options is the only way to stay on top of the trends and avoid missing out on a potential retirement boon.
Diversifying with a gold IRA might not be right for you, but learning about them is always a great idea. We hope today’s exploration empowered you to read more, search more, and save more efficiently for your retirement.