Gold Investment Options and Retirement

At a certain point in life everyone one of us tend to think about retirement and no matter how well one handles finances, the fact is we all need retirement directions. 

The sooner one starts investing for retirement, the better. It is best to set certain goals and invest so that you have enough money to lead a comfortable life even without your monthly salary.

In this age of the internet there are various retirement calculators online that can help you in planning for your retirement. One can also seek the help of a professional financial advisor to invest wisely. Some of the things to consider while planning for retirement are : present income, your present age, the age at which you plan to retire, yearly raise and your total savings.

Whatever plans you decide, remember to take retirement seriously because considering inflation and ill health associated with old age, we have to be prepared for the worst.

Investing in Gold IRA

 A gold IRA (Individual Retirement Account) is an account  in which gold is stored as gold coins or bars instead of currency. Companies that  sell gold IRAs often use the help of IRA services to act as a trustee for their clients. IRA accounts also have the advantage of being exempted from tax.

Apart from gold coins and bars, gold ETF or stocks and shares in gold can also be used. Having a self-directed IRA is the best way to invest in gold. A self-directed IRA works like a regular IRA with the only difference that one can choose themselves how the money will be invested instead of a custodian or a trustee. This gives you a better idea of how it is invested and is hence more flexible and easier.

A self-directed IRA is a regular IRA, except you get to choose how your IRA funds will be invested instead of the trustee or custodian. This gives you flexibility to invest your money in whatever way you feel comfortable. It can also ensure that you are always aware of where your money is and how it is being invested. IRAs are usually used in addition to 401(k).

Buying gold

Gold is generally considered as a commodity that resists inflation and thus is a favorite among investors. People who are beginners to invest in gold better seek the help of a company that will provide all the help to carry out the  process. These companies will help you choose gold coins that will provide the highest return on your investment. They will also provide a clear idea on where your gold is and what type and amount of gold has been purchased with your IRA funds. The type of gold that can be used in an IRA are determined by the Tax Payer Relief Act. Some of the requirements for gold investment is that – it should not be a collectible, should have a minimum purity and fineness required for precious metals i.e. Gold (.995+), Silver (.999+), Platinum (.9995+) and Palladium (.9995+). Certified coins are also not allowed.

Gold backed IRA

A gold backed IRA stocks real gold instead of stocks, mutual funds or paper currency.

An investor interested in converting his/her saving to gold should first open a gold backed account to deposit the funds. The next step is to purchase gold assets from a reputed gold dealer. The gold is then put into the hands of an experienced gold IRA trustee. These trustees or custodians will carry out all the administrative work on behalf of the owner who is required to pay a fixed charge for maintenance.

There are two ways by which one can invest using Gold backed IRA:

One option is to use a self-directed IRA. This gives the investor the freedom on how to invest his assets.

The second method is through a gold IRA transfer.

Investing in Gold

As far as investment is concerned gold is the most popular precious metal because of the low risk involved. Of course the price of gold had been fluctuation in the last couple of years but if you consider the average price, it is a steady line on a graph. These days the gold Exchange Traded Funds (ETFs) is a popular option because of the ease and safety involved. The charges are quite low and the gold can be bought electronically. Junior gold stocks and mutual gold funds are other options for investing in gold.