Compare the Best Gold IRA Brokers
Alex Long- Gold can be used to hedge against inflation risks.
- Gold can be a safe haven when capital markets face uncertainty.
- Gold is also used as a store of value for some investors. Gold IRAs are retirement accounts where investors can invest in gold. Gold IRAs are similar to other IRA accounts, in that they are tax-deferred.
Gold is a traditional safe haven that has been used for centuries. For investors looking to diversify their portfolios, gold is an option to consider.
Gold IRAs are a great way for investors to add gold to their personal retirement accounts. Gold IRAs are similar to 401(k)s in that they allow individuals to invest money for retirement.
Traditional IRA vs. Gold IRA: An Overview
Both traditional IRAs and gold IRAs are investment accounts that let you save for retirement.
Both accounts are funded with pre-tax dollars, meaning you won't have to pay taxes on your earnings until you withdraw the money.
There are two main differences:
The amount of money you can contribute each year to a traditional IRA is limited.
You can invest almost any kind of asset in a gold IRA, with the exception of collectibles.
Traditional IRA
A traditional IRA is a tax-deferred retirement savings account that allows individuals to contribute pre-tax dollars. Contributions are made with after-tax dollars, and earnings grow tax-deferred. The account holder can take distributions from the account beginning at age 59 1/2, with earnings taxed as ordinary income.
Roth IRA
A Roth IRA is a retirement savings account that allows after-tax contributions to grow tax-free. Withdrawals are tax-free, provided the funds have been in the account for at least five years. Roth IRA contributions aren't tax-deductible, so account holders must have sufficient earned income to contribute to a Roth IRA.
Gold IRA
To open a Gold IRA, you will need to find a custodian. The custodian will hold your gold assets on your behalf and give you the ability to buy and sell when the time is right. Here is a list of the top gold IRA custodians:
Pros and Cons
Pros
Low-fees for gold custodial services
Choose from multiple options when opening an account
24/7 customer support
Wide variety of investment options
Cons
Higher account minimums
Limited options for people who aren't based in the U.S.
Pros
76.1% of investors say they'd buy more gold and gold-related assets if prices fell
Gold IRA sales and rollovers have doubled since 2015
Low account minimums
Easy access to gold bullion
Cons
No physical gold available
Account fees
Account minimums
Gold IRA: Should You Open One To Save For Retirement?
Cons
Gold IRA Rollovers are not FDIC or SIPC insured, and brokers are not liable to pay the customer's losses.
If you open an account for a "physical" gold bullion, it is stored in your broker's vault until you instruct them to ship it to you.
You must pay commissions to buy and sell, plus storage fees.
You need physical or digital gold bullion in your possession soon after completing the transaction.
