Some owners of individual retirement accounts still have bad vibes about the stock market. However, the safest fixed-income investments are paying microscopic returns, and the risk of inflation remains worrisome. That’s why investing some of your IRA money in gold or other precious metals might be appealing.
Acquiring assets, such as silver, platinum, palladium or gold in an IRA is one way to diversify your retirement portfolio. Many people have experience investing their personal funds in precious metals. They are now looking to capitalize on that experience and generate retirement wealth that is tax-deferred or tax-free.
With the exception of Roth IRAs, where eligible distributions are tax-free, eventual withdrawal from an IRA is taxed as income; including the capital gains. Because income is likely to be lower after retirement, the tax rate may be lower. Combined with potential tax savings at the time of contribution, IRAs can prove to be very valuable tax management tools for individuals. Also, depending on income, an individual may be able to fit into a lower tax bracket with tax-deductible contributions during his or her working years while still enjoying a low tax bracket during retirement.
One popular way to have full control of your gold investment and invest in physical gold bullion coins and bars is to do a 401k to Gold IRA Rollover from your current Roth IRA to a Gold backed IRA (Also known as Precious Metals IRA). This will give you many more options as to what type of gold you want to purchase. Various gold bullion coins and gold bars, such as the American Gold Eagle or the Canadian Gold Maple leaf, will become an option for you at this point. Contact one of the many Gold IRA Companies to learn more about how to achieve a rollover or transfer of your current Roth IRA. Note that the IRS allows you to open a separate IRA for precious metals without any penalty.