Transform Your 401k to a Gold IRA

• These types of accounts can be held in either a physical or paper form.
• The accounts can also be held in either an individual retirement account (IRA) or an individual retirement annuity (IRA).
• There are many different types of IRAs, including traditional and Roth IRAs.
• With a traditional IRA, the earnings grow on a tax-deferred basis, while with a Roth IRA, the earnings grow on a tax-free basis.
• Investments in precious metals, like gold, are a form of alternative investing and tend to perform differently than traditional investments.

A gold IRA is a type of account that is opened for the purpose of investing in precious metals, most commonly gold.
These types of accounts can be held in either a physical or paper form. The accounts can also be held in either an individual retirement account (IRA) or an individual retirement annuity (IRA).

Pros and Cons of Gold IRAs

Since 2008, 401ks have exploded in popularity, with 92% of workers in the U.S. having one. These retirement accounts have replaced traditional pension plans and supplement Social Security benefits.
Investing in gold through a 401k is a smart move. Gold is a time-honored store of value and hedge against inflation and currency devaluation. If markets turn sour, gold is a safe-haven asset that will likely rise in value.

Types of Gold IRAs

There are two primary types of gold IRAs.

The first type is known as a gold bullion IRA and is handled by a third-party custodian. The second type is known as a self-directed gold IRA and is administered by you, the investor, with the help of your IRA custodian.
A gold bullion IRA allows for the secure storage and purchase of physical gold bars or coins.
A self-directed gold IRA allows you to control your investment choices, allowing you the freedom to put your money into the precious metals of your choosing, such as gold, silver, platinum, palladium, and more.

Traditional Gold IRA

With a Traditional Gold IRA, investors buy and store gold in their own name. The gold must be in a "Custodial" account, which is held at a bank or trust company.
The metal is in the investor's name, but he or she does not own it outright. Instead, they are merely the custodian, or trustee, of the gold, and the gold is owned by the IRA administrator or trustee.
Gold ETFs
A Gold ETF is different from a Gold IRA, in that the investor does not buy and store the metal. Instead, the investor buys shares in a fund that invests in the metal.
Because Gold ETFs trade on major stock exchanges, they are more liquid than many Gold IRA investments. However, unlike a Gold IRA, the investor does not own the underlying gold, and he or she cannot physically withdraw it from the ETF's custodian.