The Taxpayer Relief Act of 1997 enabled citizens in the United States to possess permissible gold in their qualified retirement plans or IRA, resulting in the inception of various IRAs like Gold IRA, Silver IRA, Platinum IRA, Palladium IRA, Precious Metals IRA, or Physical Gold IRA.
Although the term Gold IRA is frequently used in a broad sense to describe a retirement plan that possesses either gold or other valuable metals, Midas Gold Group specializes in assisting customers who hold various types of retirement plans that can directly invest in gold or can be converted into a precious metals IRA. The plans offered by Midas Gold Group are:
- Traditional IRA
- ROTH IRA
- SEP IRA
- Simple IRA
- Inherited IRA
- Rollover IRA
- Health Savings Account (HSA)
- Thrift Savings Plan (TSP)
A Physical Gold IRA operates similarly to a traditional IRA. Contributions can be made annually and used to acquire additional gold. Funds may be transferred to a new custodian after selling gold. Distributions can be obtained in the same manner. One can receive their distributions in-kind by withdrawing actual gold from their Physical Gold IRA account, or in cash after selling the gold. Despite converting your IRA to physical gold, it will continue to function like a standard paper IRA, which you may already be accustomed to.
Numerous Gold IRA firms operate within the nation, yet it is crucial to only engage with the finest when it comes to the protection of your retirement funds. At Midas, we uphold our standing as the most dependable Gold IRA business in the United States.
Midas Gold Group prioritizes their clients’ needs by utilizing knowledgeable experts instead of hiring salespeople motivated by commission to sell products that primarily benefit themselves.
WHY GOLD IN YOUR IRA?
Gold Stands the Test of Time
The truth is in the figures! Gold started being used as a form of currency in 700 BC and its value has been maintained since then. On the other hand, numerous monetary systems and currencies, both notable and insignificant, have crumbled despite gold’s stability.
Numerous entities, including the British Royal Family, the Catholic Church, every Royal Dynasty, Central Banks worldwide, and virtually every sovereign nation, opt to retain significant portions of their wealth in gold, and this is due to a valid rationale.
Institutions with a history of stability recognize the eventual collapse of currencies and financial systems, yet gold has been proven to preserve and increase one’s wealth. Therefore, your retirement and wealth should not be treated differently; gold is the ultimate form of “store of value” that you deserve!
Gold is Diversification
Astute investors comprehend the cyclical nature of markets whereby economic growth phases inevitably precede market downturns and bear markets. By opting for a gold IRA through Midas Gold Group, one can access unparalleled diversification that shields against contingencies such as stock market plunges, credit tightening, geopolitical unrest, and real estate market adjustments.
The most astute investors have historically regarded gold as a safe haven for storing profits acquired during stock market peaks, recognizing that stock market crashes are an inescapable reality. It begs the question, why subject oneself to the ups and downs of the stock market once more?
Gold is Stability
It is not widely understood that in 1971, the US ended its adherence to the gold standard.
Investing $100 in bank savings with the usual compounded interest rate since then would have yielded an estimated present worth of $1,200, which is a 1,200% increase.
Investing $100 in gold in 1971 would result in a current value of around $5,474, reflecting a remarkable growth of 5,374%.
Given the historically low interest rates at banks and the record-high growth of money and debt, opting for gold is a wise choice as an alternative to cash and conventional assets in your IRA. In the long run, having gold physically at hand is and will always remain a better option than keeping excess cash at a financial institution.
Gold Offers Profit Potential
Gold has a tendency to outperform all other assets during times of stock market crashes, rampant inflation, credit crises, and war. Knowing that any of these scenarios may happen, smart investors choose to allocate a portion of their retirement funds towards gold.
Additionally, due to its importance as a crucial component in electronic gadgets, gold’s consumption in industries has skyrocketed. The distribution of smartphones around the world is expanding rapidly, and Apple projects that the number of smartphone users will exceed 7 billion by 2021. As demand increases while supplies dwindle, gold prices are inevitable to rise based solely on industrial demand.
Costs Associated With a Precious Metals IRA
Having a good comprehension of the expenses and charges connected to investing in precious metals like gold and silver, and in fact, any form of investment is imperative. If someone intends to put their money into a precious metals IRA, they need to carefully evaluate and take into account the numerous fees that come along with it. Because an IRA account is tax-deferred, it is necessary to make use of a certified IRA custodian to manage the account. Below, we will illustrate some of the possible expenses.
- Account application fees — An approved precious metals IRA custodian may charge an application fee to begin processing a new account or an IRA/401k rollover. These fees can range from one custodian to the next, but on average expect to pay around $50.
- Transaction fees — Precious metals IRA custodians may charge a transaction fee for the purchase or sale of metals within the account. This fee is charged on a “per transaction” basis. Fees can vary but $40 per transaction is not uncommon.
- Annual account fees — Approved precious metals custodians are in business to make money, and they do so by maintaining accounts and taking care of all of the bookkeeping and account administration. Fees can vary from $75 per year to a few hundred dollars per year. IRA custodians will disclose their annual fees in their information packets or account paperwork. In addition, these custodians may offer discounts based on account size.
- Wiring fees — IRA custodians will charge a wiring fee for any funds that must be wired (to pay a dealer for example.) These wire fees are typically $25 for each outgoing wire.
- Storage fees — Gold, silver or other precious metals that are held in an IRA account must be kept in an approved depository. These depositories charge annual fees in order to hold and secure precious metals. Again, fees may vary based on which depository is used. Typical fees, however, may be in the .5 to one percent per year range based on the value of the precious metals.
- The cost of the precious metals — An investor obviously also has to purchase the desired precious metals from a dealer for his or her IRA account. In addition to the cost of the gold, silver or metal content within these products, investors may also pay premiums over the spot price based on such things as product type, demand and dealer premium.
It is worth noting that the expenses involved in investing in precious metals or a precious metals IRA should also be compared to those of paper metal products like the GLD gold ETF.
As previously mentioned, there are multiple expenses involved in maintaining a valuable metals IRA, as well as fees linked to various paper metal products. For instance, investing in GLD shares incurs a management fee, with a .40 percent annual net expense ratio determined by Morningstar. This equates to nearly half a percent of asset value paid to fund management annually for ETF shareholders. It’s important to note that both physical and paper gold ownership involve fees and expenses that must be considered when making comparisons.
For retail investors, it can be extremely challenging, if not impossible, to obtain physical gold when it comes to GLD. As a result, one may be paying management fees for the fund without having any access to the gold held by the fund. Essentially, the purchase of precious metals and investing in a precious metals IRA has associated costs, much like other metals-based investments. Ultimately, individuals must evaluate and compare these expenses in order to make the most appropriate decision based on their personal financial situation and goals.
Having a precious metals IRA account may offer a beneficial means of incorporating precious metals in a portfolio. As with any transaction or investment, individuals aspiring to initiate a precious metals IRA ought to conduct their own inquiry and exploration. One can examine various gold or silver bullion merchants as well as scrutinize and evaluate distinct IRA custodians or trust corporations. It is crucial that prospective investors scrutinize all associated charges before contemplating such an account.