Over the last serveral years, Roth IRAs that hvae contained traditional assets have seen a decline that has been steady because of the United States Dollar. Many investors have lately decided to add gold as an alternative that is considered safe to their Roth IRA account.
Unlike the downward trend of the accounts mentioned above, IRAs that are backed by gold have been increasing ever since the Gold Roth IRA has been available. This gives much greater security to the holders of these accounts. Here are some facts about gold IRAs if you are not familiar with such an investment.
An IRA is a tax free investment account, and was created for those worried about retirement in the 1990s. IRA regulations also changed during this period. This is the time period when precious metals were changed to be allowed in traditional IRAs as well as Roth IRAs.
Invest in Gold
If you are planning for retirement, investing in gold is an excellent choice because throughout history, it has always increased even if the economy was in bad shape. Since gold has increased in value over the last few years even though we are in a recession you can see how investing in gold can have huge payoffs as well as increased security.
Objectives of IRAs
Roth IRAs and traditional IRAs are basically to achieve an income when you go into retirement. If you want to have an income when you enter retirement, the goal is to obviously have your assets increase so the money is available to you. Since gold Roth IRAs have such great stability and are known to perform, you should have this in mind when making a decision if you want to invest in gold.
Converting or Opening a Gold Roth IRA
Each day, specialists in IRAs help people to transfer all of their IRA or 401k plans or just a portion into gold Roth IRAs. The process is actually very easy if it is done by a professional. Make sure that this professional is from a reputable company and is of course secure. When you convert your account over to a gold Roth IRA to invest in gold, you will not be charged a fee or taxes, which of course is a great opportunity to take advantage of.
When you want to open a new account and did not have a previous traditional IRA or Roth IRA, you can talk to an IRA specialist. When you choose to open an IRA that is backed by gold, remember to find a reputable company to take your money and invest it into gold. Remember, the third party depository must have been approve by the Internal Revenue Service.
The contributions to a Roth IRA have already been taxed, so there are no fees or taxes when you withdraw that money. To withdraw the money though, the holder of the account has to be at least 59.5 years old when withdrawal takes place or you will get hit with some fees. Traditional IRAs are a little different in the fact that you can no longer contribute once you reach 70.5 years old. Roth IRAs vary as well because you can place money into those accounts as long as the account holder lives.
A owner of the gold Roth IRA has a unique responsibility, they must store their own physical assets. Certain regulations say that investors can not store gold by themselves but instead have to take the precious metal and it must be stored by a third party. The owner of such an account cannot posses the gold because if they did, it would be considered distribution which is not allowed. If you are under 59.5 years old, you would get hit with a penalty.
If you take the time to consider the facts of what has been laid out to you, gold Roth IRAs offer benefits that are too good to pass up when you plan your retirement. If you require some help getting started, make sure you get in touch with a financial planner about investing in gold.