Most of the world is aware of the ira as well as the 401k but they might not know about one of the newer types known as the gold ira. So what is this new type & how might it affect your retirement savings in the future? Well, there are a few different things you should know about it.
The first thing to keep in mind is that it is pretty much the same as a regular ira except for one thing: you can actually put gold into your account. It can be either the regular physical form of gold or it can be an online form but most of the people who use it tend to go with the regular type of gold, be it bars or coins. As to where they get these types of resources, that’s anyone’s guess but it does tend to appeal a bit more to those who are affluent. It can be used by anyone regardless of how much they have in the bank.
There are plenty of companies out there that can help you with this. One of them being Noble Gold. If you want to learn more about this company, see the Noble Gold review that we found the most helpful.
One alternative to Noble Gold is Oxford Gold Group. These are both good companies, so you can do your own research, but we found a good Oxford Gold Group review as well if you want to compare the two companies.
So here are some of the few key takeaways you should know about. You can set up your gold ira with pre tax dollars but you can also use dollars that have not been taxed yet. If you are one of the gold ira holders who is self directed, the ira will allow you to buy any kind of precious metals for your account such as gold or platinum. You can also buy palladium or silver if you so desire but it would be best not to go overboard with this type of account. You can only put in about 6000 per year & the irs will enforce it if you go over the limit so make sure to play by the rules.
There are a lot of tax advantages to this type of account but you could get the same kinds of advantage just using a regular ira so this might not be the right one for you. You can get a regular gold ira but there is also the option to get a rollover or what’s known as a gold sep ira if you are so inclined. Now this is available to those who own a small business or someone who identifies as self employed. With this, you will only be taxed if you withdraw any money during your retirement as opposed to any of the money you might contribute to it.
Typically, the most you can put into it in any given year is about 6000 but when you turn 50, this increases to 7000. This helps you to meet your goal faster than you might expect. This also allows you to save to a quarter of what you make up to 58000 & put it into your retirement savings. This will increase to 61000 as we get into the new year but for now it remains at 58. So you might be wondering if there is any risk to having a gold ira but the good news is there does not appear to be much of any in this type of account.
The thing you need to understand is that gold doesn’t have any earnings which means you are not likely to make any money off of it unless you invest them in stocks or something like that. It also does not pay any dividends so there is no evidence that this is the kind of account that can benefit you financially. But gold has begun to increase in value over the years so if you do have an account for many years, this could lead to you benefiting from this account in the long run.
This does not mean that you do not have any use for a gold ira in the short term but it is probably not what you should be focusing on primarily. It did spike back in the early 80’s then plateaued by the time it got to 2006. It peaked at 1600 when the stock market crashed back in 2008 & now it’s hovering around the same range somewhere between 1100 and 1300. This is not to say that it will never go up in the future but I definitely would not hold your breath.
At the same time, there is also the roth gold ira which can only be funded with money that has already been taxed. When you finally opt to withdraw it during your retirement, you will need to pay taxes on it but this is just a drop in the bucket compared to what you make in the long run. & finally, you have the traditional gold ira which can only be funded with pre-tax dollars. This means your earnings will grow over time & be taxed when you finally opt to retire.