Not many people take advantage of gold IRA as a form of investment. Many of them simply don’t know how to get started with this form of retirement plan. Here is a step by step guide to help you fund your account with gold.
1. Start by looking for a good custodian: A custodian is simply the company that is going to be managing your IRA portfolio on your behalf. Look for a licensed custodian with a good reputation and ask about the fees they charge for their services before signing up.
2. Understand your options: The custodian should let you know what your options are when it comes to gold IRA investing. What can you invest in to diversify your portfolio? Opt for a custodian that offers different forms of investments so that you can create an all-rounded portfolio.
3. What if you have an existing IRA account? In this case you are allowed to move an existing IRA account to precious metals like gold. You can do a direct transfer from one IRA to another with the help of your custodian. You may also perform a rollover where you will have to receive the contributions from your existing account and then deposit it into the new IRA in order to invest in gold especially if your previous custodian does not offer gold IRA investing. Rolling over can end up giving you more control over your gains and losses and also lower your degree of risk.
4. Begin the process of investing in gold: There’s certainly paperwork that you will have to fill when you choose to invest in gold. This will depend on the type of gold you have chosen to invest in. One of the options is to invest in gold by buying stocks of a mining company. You may also choose to buy a mutual fund that includes the stocks of top mining companies. This is a way to invest in paper gold instead of buying the physical gold. However, if you want to invest in physical gold, you’ll have to choose a gold IRA company that will help you manage your portfolio and make the best decision to increase your savings. Unlike paper gold, physical gold doesn’t have the regulatory risks and management risks that may make you lose your money. Your custodian should be able to guide you on what is required and speed up the process.
If you want to invest gold in your IRA, you need to think about choosing the best IRAcompany.