What Is a Gold IRA? As a retirement saver, you’re constantly faced with choices and tradeoffs.  You want your retirement portfolio to make big gains, but you understand in the back of your mind that your portfolio can be subject to huge losses. Many successful savers are those who protect their portfolios from major losses, not necessarily those who make the biggest gains. As Warren Buffett famously said, “the first rule of investing is never to lose money, and the second rule is never to forget the first rule.” “The first rule of investing is never to lose money, and the second rule is never to forget the first rule.” One time-honored way of protecting investments against loss is by investing in gold. Investors have sought the safety and security of gold for centuries, and today is no different. When stock markets crash, or when fears of market weakness emerge, many investors rush to the safe haven of gold. But even outside times of financial difficulty, investing in gold can be a smart way to diversify your portfolio, protect your wealth, and make solid gains. One popular method of investing in precious metals is through a gold IRA. Gold IRAs offer the same tax advantages of conventional IRAs, but allow investors to protect their retirement savings with tangible physical gold, which can help safeguard them against volatility in financial markets. Given gold’s reputation for long-term stability, it is a sought-after asset for investors looking to protect and diversify their investments. If you’re looking to protect your retirement savings, ensure that you have enough to live comfortably in retirement, and pass money on to your heirs, keep reading our beginner’s guide to a gold IRA to find out more about the numerous advantages of a gold-backed IRA. What Is a Self-Directed Gold IRA? Unlike conventional IRAs with which you may be familiar, a gold IRA is a type of self-directed IRA. Before we address gold IRA investing, it is important to understand the basics of a self-directed IRA. A self-directed IRA (SDIRA) is an IRA that gives you greater control and flexibility over the assets you invest in. It allows you to invest in alternative assets that aren’t found in most conventional IRAs. While self-directed IRAs require the use of a custodian who administers the account, you as the account holder actually get to manage the account directly. Some common forms of alternative investments allowed in a self-directed IRA include: A gold IRA is simply a type of self-directed IRA that focuses on investing in precious metals such as gold coins and gold bars. How Does A Gold IRA Work? A gold IRA allows investors to invest in gold and other precious metals while still enjoying the same tax advantages of an IRA retirement account. Just like conventional IRAs, a gold IRA can be a traditional IRA in which investors use pre-tax dollars to invest in gold, or a Roth IRA in which they use post-tax dollars to invest in gold. Those with SEP or SIMPLE IRAs can also invest their retirement savings with a gold IRA. A common method of funding gold IRAs is through rollovers or transfers from existing retirement accounts such as a 401(k), 403(b), TSP, IRA, or similar account into a gold IRA. This allows investors to lock in gains they may have made in their current retirement accounts and transfer that wealth into precious metals, which can provide more protection and stability. Gold is a tangible asset that anyone can own and hold, and it offers stability against inflation, financial turmoil, and economic downturns. Thanks to provisions in the tax code, investors can invest in gold through a gold IRA, allowing them to gain all the same tax benefits as a conventional IRA. There are many advantages to including gold, silver or other precious metals in your IRA portfolio, including: Investors can contribute to a new gold IRA account or, more commonly, roll over a portion of their current retirement accounts (401(k) rollover) into a gold IRA to diversify their portfolio. With the risk of recession being ever present, there really isn’t a bad time to consider precious metals like gold as an investment. What Is a Gold IRA Rollover? A rollover IRA is a term for an individual retirement account (IRA) that is funded by moving funds from a 401(k), 403(b), TSP, or similar retirement account into an IRA. The main difference between a 401(k) and an IRA is that an IRA is normally opened by an individual, whereas a 401(k) is offered by an employer. With a rollover IRA, investors can use existing retirement funds to take advantage of a broader range of investments than are available through 401(k) investments alone. And by investing in a self-directed IRA, you have even more options for investments, such as a gold IRA. Rollover IRAs are most often created when changing jobs or retiring, as they allow employees to move their current 401(k) or other retirement account balances into an IRA account that will offer a better array of investments and potentially superior performance. When performing an IRA rollover, funds from existing tax-advantaged accounts can be rolled over into a new IRA tax-free. You can even roll over funds from multiple retirement accounts into a single self-directed IRA, making it easier for you to consolidate and manage your retirement savings. With a gold IRA rollover, investors can minimize the tax impact of their gold assets too, since distributions are normally subject to ordinary income tax rates. Particularly for those in lower tax brackets, that can result in gold held in an IRA being taxed at a lower rate than if it were not in an IRA. And for those investors who invest in a Roth gold IRA, they won’t be taxed at all on the gains on their gold investments. What Is a Self-Directed IRA Custodian? Like any other IRA, your self-directed gold IRA needs to have a custodian per IRS regulations. Your gold IRA custodian is responsible for administering your account and

Why Should You Buy Gold Everyone wants their retirement portfolios to perform, but along with the prospect of gains comes the risk of loss. Protecting your portfolio can mean not only making smart investment choices but also diversifying your portfolio with more than just stocks and bonds. One way you can do that is by buying gold, silver, and other precious metals. Gold and silver have served as safe havens and stores of value for centuries, and their value today continues to rise. With the same advantages as conventional IRAs, gold IRAs help protect retirement savings from volatile markets. 3 Primary Reasons to Consider Adding Physical Gold to Your Portfolio Include: 1. Portfolio Diversification You can diversify your portfolios with a variety of assets like stocks and bonds, mutual funds, and ETFs. But you can also invest in gold and other precious metals through a precious metals IRA. Because of gold’s safe haven status, investors flock to physical assets during uncertain financial times, which can cause the price of gold to rise even when markets are declining. That can make gold a good choice for a well-diversified portfolio that gives you the stability you need during tough times. 2. Hedge Against Volatile Markets Market volatility can impact your savings and investments. But a volatile market doesn’t mean you have to give up investing and protecting your assets. In fact, owning gold in your portfolio or protecting your tax-advantaged savings with a 401(k) rollover could help you manage the ups and downs that come with a fluctuating market. 3. Gold Holds Its Value Gold can be a good choice during good times and bad. It maintains its purchasing power over time, and can outperform other investments during times of economic uncertainty. If you’re looking for something that can help safeguard your wealth from the unknowns, consider looking into a gold IRA. Learn How to Safeguard Your Retirement Savings with Gold If you’ve been struggling to find a safe way to protect your retirement savings, a precious metals IRA could be the answer. No matter how many years you have until retirement, it’s never too late to start planning and investing. Traditionally, IRAs have been a safety net for people without access to employer-sponsored plans like a 401(k). By buying gold through a precious metals IRA, you get the same tax advantages as any other IRA, but with the added security of owning physical gold. If you’ve been considering buying gold as an investment, we know there’s a lot to learn. From the numerous benefits, to the rules for investing in gold, our Beginner’s Guide to a Gold IRA Guide is a one-stop resource to get the information you need to start making smart decisions with precious metals.