What, Exactly, is a Gold IRA Rollover?
This type of investment applies to a gold IRA account that has been established by rolling over retirement investment funds. The money invested, to put it simply, goes into gold, which then becomes part of the assets that make up your gold IRA portfolio.
Nearly all investment counselors will tell you that investing in gold and other precious metals is a good, practically mandatory, move. The value of gold tends to remain steady or go up in times of economic trouble. A gold rollover will ensure the safety of your IRA investment for years to come, and is an excellent hedge, balancer, and diversifier for your retirement portfolio in general.
Why Create a Gold IRA?
Setting up a gold IRA account enables you to purchase gold for your pension fund. At this point in time, a precious metals IRA account is the only investment option that allows the investor to buy physical gold and realize an investment return within a tax-free IRA. The process is best left in the hands of expert brokers, or “trustees,” who keep up to date with the ins and outs of investing in precious metals.
The Self-Directed IRA
Even if you choose to set up an IRA account that is self-directed, it’s wise to arm yourself with the contemporary wisdom on the subject before you go for the gold. Sit down with a broker and pay them for their counseling time. You should find out exactly which mints, purity ratings, and types of bullion or gold coins are acceptable in IRA portfolios.
Once you’ve gathered and digested your research and then set up your self-directed gold IRA, the account will be under your sole custodianship. This will give you abundant flexibility and total control over your investment monies.
Pro’s and Con’s of the Self-Directed Gold IRA
When you open a self-directed precious metals IRA, you must avoid violating the government rules regarding specific types of investments. The government can exert this pressure because Individual Retirement Accounts are, in fact, government qualified plans. Also, although taxes from IRA profit growth are deferred until you withdraw money, when you do so, it reverts to taxable income, sometimes at remarkably high rates.
It is the complex nature of the gold IRA’s structure, along with the many governmental restrictions, that make the a self-directed gold IRA something of an unweildy creature, one that can step on you, intentionally or not, when you turn your back for a moment. For this reason, those investors who are not experts or who are unwilling to invest research time as well as money are advised to seek out a professional’s guidance.