Gold IRA investing is a very common activity today. There are some tips that can help investors who want precious metals in their retirement savings matrix. Not all IRA plans allow gold investment choices so it is important to identify IRAs that do offer these options for account holders. One tip that can help is rolling over a 401k plan into an IRA, one that allows investments in precious metals.
If a 401k is rolled over into an IRA so that gold can be an investment option make sure that the check does not go to the account holder, but goes instead to the custodian of the new retirement account. If the investor receives the check then there could be tax penalties and additional expenses, as well as a very strict time line for investing these funds in another account. If the custodian of the new IRA receives the fund transfer there are no additional concerns or requirements.
There are many ways that gold IRA investing can be managed. Some IRAs allow gold bullion to be purchased. This bullion can be in the form of bars, ingots, and coins. Investors usually can not choose gold coins for their value as a coin, only for the value of the gold contained. Rare coins are not acceptable investments with any IRA but there are several other ways to invest in gold using this type of account.
Stocks in mining companies that produce gold can be a way to invest in the precious metal without actually taking possession of the gold. Some of these stocks may represent companies that mine and produce gold only, while others represent companies that specialize in all forms of precious metals. Gold ETFs, electronically traded funds, are another smart choice for some investors.
It is important to remember when deciding on gold IRA investing that the price of this metal is at record highs but this fact can change quickly. Most financial experts warn that retirement funds should be managed somewhat conservatively. Investors should never place the funds from retirement accounts into high risk holdings. Many IRAs that offer gold options have certain restrictions in place. The investor should examine the IRA restrictions in place before opening a new IRA account for gold options.