The IRA Doppelganger – Retirement Annuity VS Gold IRA

As your time for retirement is about to come, one option that you may have in mind is purchasing a retirement annuity.  However, you may have heard something unfavorable about this game plan that is keeping you from pursuing your plans.

Now you’re confronted with a choice whether you should invest in this kind of retirement strategy, or put your money in a Gold IRA.

Why people buy annuities

Americans who are retiring at the age of 55 think of buying annuities under the following conditions:

•    When there is a current trend of inflation, and it is projected to last for a long time.

•    When there is no tendency for interest rates to rise up in your lifetime.

•    You think that the value of the currency you have invested in has no tendency to decline.

However, when the stability of the institution becomes a question due to inflation, increased interest rates and currency devaluation, it could bring you great losses.

How an individual retirement annuity differs from an individual retirement account

Retirement annuity is considered as an insurance product that guarantees your income after retirement.  In the case of an IRA, it is an individual account that allows you to put your money in other investments such as precious metals like gold, annuities, real estate, bonds and stocks.

Risks of annuities

When you buy an annuity, you pay money upfront in one lump sum.  You then get a certain sum of money every month for your lifetime.  Under the basic annuity, the amount that you receive per month will never change.  However, after you die, nothing is left in your initial investment.

That means, if you die after a few months from buying it, the company will keep the money you have invested.  Another risk is that just like a long term bond, annuities can be hit severely by increasing rates of interest and inflation.

Retirement annuities are like insurance products that you have to pay taxes for

One of the disadvantages of purchasing an annuity is that you have to pay corresponding taxes on all the gains.  When you liquidate your annuity, it follows that the gains will be added to your income.  In effect, you’ll be moved to a higher marginal tax rate based on your total earned income.

It simply means that you will not only pay the tax on your annuity gains, but also a higher tax on the total of your ordinary income which can surely hurt your pocket.

There is no doubt that annuities are regarded as insurance products in which you have to invest a large amount of money in order to get a corresponding return of investment on a monthly basis.  This is acceptable if your money is safe, but the problem is that it is not.

Nothing can guarantee your annuity because the insurance companies that handle them have statutory rights that protect them from liability in case they are not able to pay claims due to bankruptcy.

How an individual retirement account allows you to invest in precious metals like gold and silver

In 1997, the inclusion of gold and other precious metals in IRA as investment was authorized by Congress based on the following reasons:

•    Considering that gold is not dependent on traditional investments such as bonds and stocks, the market prices for gold tend to be more stable and favorable. This has been proven over the past several years.

•    Precious metals have less volatility in the market, and they possess greater returns on a long term basis unlike stocks and bonds.

•    Market gains from precious metals are exempt from taxes on capital gains.

Can I Buy Gold From Regal Assets?

Many people posit there are few true assets which will keep their worth and retain your wealth. We only need to remember the past few years to remind us that paper currencies have failed, stock portfolios are depreciated, and more and more people are adding gold to their portfolio. It’s not just average, everyday investors who are hopping on board the gold express; central banks and billionaires all over the world are taking a firm position in gold.

That should make the prospect of owning gold very titillating. One of the leaders in the industry, Regal Assets, has been a leader in the dissemination of the most current gold information. The information from Regal is good and prices on the commodity are still up year over year. While gold is down from its all-time intraday high, it’s still way up over longer periods of time.

Knowing all that, many investors have asked themselves the question; should I try to buy gold? Readers already up on Regal Assets have even wondered if they can buy physical gold or gold investments from Regal Assets directly. Lucky for the curious investor the answer to both of those last two questions is a resounding “Yes!”. Regal Assets offers all types of investments for all types of clients.

Regal Assets Gold IRA – One of the more impressive of the Regal Assets divisions is their Gold IRA. Their own Gold IRA promises to reduce volatility in your overall portfolio. Because of the manner in which gold typically counter balances the scales of the stock market, bond market, and traditional mutual funds, the Gold IRA from Regal makes a lot of sense both as a safe haven and as a hedge against the markets.

If it’s your contention that there will be a bear market in stocks and that “the recovery” is far from healthy, parking some of your traditional investment funds into a Gold IRA like the one from Regal is as safe a bet as any. If however you’re looking for somewhere to move your assets from after you’ve made money in the markets, gold is a much better place for that money to sit and grow than a savings account.

Over the past 10 years; even when the averages have done okay; the gold IRA from Regal has performed extremely well. The example the company uses was $33,000 in 2002 parked in their gold IRA would have returned something in the vicinity of $200,000 today. That’s more than 600% in 10 years; for an asset that’s pretty darn safe.

Physical Gold – If physical gold is more your speed and you’d like to diversify your portfolio with some actual gold coins that is something that’s very possible as well. Regal Assets offers all kinds of gold coins including the $20 Liberty Head Gold Coin, $10 Indian Head Gold Coin, French Gold Coins featuring the head of Napoleon, $20 St. Gaudens Gold Coin, British Sovereign Gold Coin, Swiss Franc Gold Coin, French Gold Coin Angel, French Gold Franc Rooster, and others. These are just a few of the multitude of designs and styles for the physical gold coin investor who is looking at Regal Assets to claim their bounty.

Of course gold will continue to perform well in part from its universal value and in part because there’s just so little of it in the world. Gold continues to be one of the worlds most universally coveted commodities; as an investor it makes sense to add gold to your portfolio.

Over the long haul the gold standard still remains gold.

How will a self directed IRA Rollover help my retirement?

For anyone that has been less than happy with the performance of their IRA during the last several years, an option is to roll over some or all of your funds into a self directed IRA.

When does a self directed IRA rollover make sense?

  • You are interested in diversifying beyond stocks and bonds
  • You are unhappy with the management of your fund
  • You are concerned that the economy will continue to under perform

 Diversify

If your IRA is being held by a brokerage firm that does not allow investment in some traditional assets, like gold bullion coins, a self directed IRA rollover can be your answer. You will still need to have a qualified trustee or custodian to hold the assets, but you make the decision where to invest. Stay within the federal rules regarding what you can and cannot purchase for the IRA fund. For example, you cannot sell something to your own IRA that you already own. Follow the rules and you can create an IRA that allows you to diversify beyond stocks and bonds.

A key objective for your self directed IRA rollover can be using gold bullion coins to protect against economic instability, increasing inflation and an explosion in energy costs. Gold has historically gone up in value while other assets declined. Over the last 10 years the value of gold bullion has increased over 500%. Stock market investments have fluctuated up and down over the same period with a total increase in the 40% range.

Gold bullion coins can provide an insurance policy against the unreliable values of other investments. In other words, Bullion can diversify the portfolio in your IRA if you decide on a self directed IRA rollover.

Take Control

Rather than rely on the investment decisions of others, a self directed IRA rollover puts you directly in charge of the money that you will need in retirement. No longer will you second guess the investment decisions made on your behalf.

Worried About the Economy?

If the last few years make you concerned about the future, taking control over your assets, especially your IRA, by the use of a self directed IRA rollover can make real sense. Gold bullion will protect your assets by growing in value when other more traditional investments can go down in value.

Gold bullion is a very easy way to protect your portfolio and make it a more stable and reliable source of funds during your retirement years. A self directed IRA rollover can solve some of your concerns.

Who’s getting physical with my gold in an IRA?

Many investors are not aware that they are allowed to hold physical gold inside of an IRA account. In fact, the Internal Revenue Code has allowed you to hold physical gold inside your IRA since 1998. Physical gold in IRA is not a difficult investment to set up. However, you do need to be aware of several factors. These include finding the proper custodian, learning about storage and other fees, and which types of gold are able to be held this way.

Role of Your Custodian:

Your custodian is critically important when considering holding physical gold in IRA accounts. You must first ensure that your particular IRA is set up to do this, since not all are. If not, you should consider opening another account to take advantage of this law.

Actually, this is probably the most difficult step. You need to find a custodian to establish a self directed IRA account. Then, they will oversee transferring funds to buy the precious metals and transfer and store your coins or bullion securely. If you can solve this issue, holding physical gold in IRA accounts can be an excellent investment and hedge in the current economic conditions.

Storage and Other Fees:

There will be certain fees which must be paid. There will likely be an initial set up fee. Then, there will also be an annual management fee. This is charged for the custodian producing all of your account statements and any other paperwork required.

Also consider the annual storage fee for keeping your physical gold in IRA accounts. Most custodians charge between $100 and $250 per year. In some cases, the annual storage fee may rise based on the amount of physical gold in IRA you maintain.

What Types of Gold Can Be Held?

There are a number of types of gold and precious metals which may be held physically in an IRA account. Generally, the rules come down to the purity of the coin or bullion bar, although there are a few exceptions to this.

The fineness standard for physical gold in IRA accounts is 99.9% fine. This means that coins like the American Eagle, American Buffalo, Australian Gold Nugget and even the Canadian Gold Maple Leaf coins are acceptable. The South African Kruggerand is NOT allowed, since it does not meet these purity standards.

It also may be a good idea to consider bullion as another type of physical gold in IRA accounts. The premium set for bullion is typically smaller than on most coins, so more of your money can be put to work. The weights of bullion bars are usually one ounce, ten ounces or one kilogram.

Other Factors to Consider:

Despite the fact that you own this physical gold in IRA accounts, you can not legally take physical possession of them. They must be held by the IRA trustee or custodian and not the owner. You will not be able to have your IRA account buy the gold and then have them delivered to your safe deposit box (or buried in your backyard, either).

All of these rules are applied equally to any type of IRA account. This includes traditional IRA’s, Roth accounts, simple employee pension (SEP) accounts and even Simple-IRA’s.

Finally

You will likely have to find an appropriate precious metals dealer on your own to supply physical gold in IRA accounts. In the off chance that your IRA account handles this for you, expect to be charged a fee for this service.

Gold IRA Companies

Setting up a gold IRA account is usually not very difficult. What is difficult is trying to find the best company to work with. For example, some companies give you a special deal on storage fees for the first year along with other setup fees – some don’t. Choose the wrong company and you’ll end up paying at least a few hundred dollars extra. Now that I’ve got you thinking about just one of the important factors for choosing a good company, let’s dig deeper. And hopefully, by the time you’re done reading this article, you should be ready to setup a gold ira account.

The Best Gold IRA Companies?

Before you take a look at your options for a gold IRA company or firm, you have to understand that these companies are usually not the same ones where you can acquire precious metals – although that’s not always true. Most of these firms usually act as custodians for your gold IRA. The gold assets themselves usually come from manufacturers and sellers of gold.
gold ira awardThere are several reputable companies out there that sell the right kind of gold that is acceptable for IRAs. This is why as you consider where to buy gold, you should already have an idea on where to put them. You should also understand the types of gold that are allowed in gold IRA. Usually, the purity of the gold should be 24 karat for it to be considered as an asset for gold IRAs.

Can you see why choosing a good company is so important? Ok, let’s dig deeper now. By the time you’re done reading this article, you should be ready to call one of the gold companies I list below and maybe even setup a gold ira account.

Gold IRA Companies Reviewed: The Company We Chose:

This company is by far the most reliable company we’ve dealt with in terms of charges, fees, customer service, and delivering as promised.

 

Other Companies That We Chose Not To Work With, But Reviewed:

Choosing the Right Company:

Read up on gold IRA reviews on our site to get an idea of the kind of service you can expect from your would-be gold IRA custodian. There will always be both positive and negative reviews out there so make sure you see the pattern in the feedback. Once you have a clear view of the benefits and drawbacks of the company you are considering, it’s time for you to determine if the benefits far outweigh the drawbacks. If they do not, be smart enough to consider other options.

Gold IRA companies that act as custodians to your gold must have secure storage facilities to protect your assets. This is why you should inquire about these facilities before committing to their service. Most of these companies also allows for other types of precious metals in IRAs, so consider that too if you are thinking of using silver or platinum along with gold.

The Gold IRA Is More Popular Than Ever for Diversifying in Precious Metals

Opening a gold IRA offers a great opportunity for investors to diversify their precious metals holdings and their retirement portfolios. Most people saving for retirement have an IRA, a 401k, or both, and most of their savings are in mutual funds or stocks. While these instruments have a rightful place in any investor’s arsenal, current events demonstrate that it is not the best decision to have a stock and bond-centered investment portfolio.

Conventional wisdom dictates that bonds are the most stable investment instrument, but as the recent past shows, economic fluctuations can negatively impact the bond market. The financial collapse of 2008 is partly blamed on investment in junk bonds, and the bond market’s stability is no longer set in stone.

Smart retirement investors must diversify their holdings; a gold IRA (sometimes called a precious metals IRA) provides an opportunity to diversify as well as market independence and stability. When the market is unstable, gold’s value rises in order to prop up other, less stable investments. When the market is good, gold still retains its value.

When you open a gold IRA, you buy real gold, typically in the form of coins or bullion. The IRA’s custodian holds the gold, and it is always available to you, the owner. There are no certificates to cash in or lose- the gold IRA means that you actually possess the asset in question.

According to US law, American Gold Eagles, along with Silver Eagles, and other types of gold and silver bullion are acceptable as precious metal investment vehicles. These other forms of bullion were approved for retirement investment in 1997, making them a boon for investors wanting to build a gold IRA.

Current IRS regulations allow both intangible and tangible assets to be deposited into a retirement account, but few investors take advantage. When the stock market is on the rise, gains can be astronomical, but when the market is down, losses can be truly devastating.

A retirement investor who wants to preserve their savings should consider building a portfolio that will remain stable in an uncertain market, and carry the ability to offset one sector’s losses with a market-independent investment.

Aftershocks from the financial collapse and the failed bailout will be felt for years, and no matter how well you’ve planned for retirement, setting up a gold IRA is a sensible way to safeguard the wealth you’ve accumulated over your working life.

Can Precious Metals Be Held in an IRA Account?

If you’ve been worried about your stock portfolio for some time now, no one will blame you! The financial crisis of late has left many of us wondering if we’ll have any retirement savings left by the time we are ready to retire. Sure, the market may look like it’s on the upswing, but do you really trust it anymore?

Many are asking if precious metals can be held in an IRA account. You may be thinking the words “gold IRA,” don’t go together but in reality, they work together perfectly as a sound investment. So, what are the rules on adding precious metals to your IRA account?

Gold, IRA – Guarantee Your Retirement Portfolio

Whether you lost money when the financial crisis hit in 2008 or you’ve just made some bad decisions, you can invest in gold. IRA accounts are also allowed to contain gold as an addition to a retirement portfolio.

Many of us with IRS plans from work watched them dwindle down each quarter and began wondering if we should take the money out and try something different or wait for the market to get strong again.

Unfortunately, the market hasn’t regained its status to the levels where those close to retirement think it should be. Many of us are thinking: “I’ll never be able to afford to retire!”

Precious metals like gold don’t lose their value and gold especially increases in value. The price of gold per ounce continues to rise all the time—sometimes even daily. If you consider an investment into the gold market, be assured this will be a prudent and wise investment. This investment will aid you when retirement comes and make it possible to leave behind something for your heirs as well as handling your final expenses.

How to Invest

If you are interested in investing in a precious metal such as gold, IRA experts are the best folks to turn to. You will need to ensure your IRA is self-directed and that your account administrator has the ability to segregate your gold into security vaults.

Good administrators will know about IRA precious metal rules and regulations and also how to keep your gold IRA separate from others doing the same. You see, many who invest in precious metals will utilize secure storage in one location and a good administrator will make sure the security vault keeps your gold separate from that of other investors.

For those us of baby boomers considering adding gold to an IRA account, there are also some Internal Revenue Service (IRS) requirements so be sure to ask your broker about how these work.

Our last important tip is on the subject of where to find gold? Often your broker or IRA administrator is the correct person and will be an expert on the topic. Not only will they ensure the gold you are investing in meets the requirements of true gold, they will also be able to complete the paperwork necessary to add gold to your IRA.

Protect your IRA and consider investing in a precious metal such as gold. And, to be safe, find a knowledgeable broker who is honest so you aren’t buying gold you can’t verify as genuine. Once you’ve made the investment you can rest assured the money you spend on gold will only increase in value ensuring when your retirement does come, you won’t be scrambling or be forced to try and find another job in an already hard-to-find-job market.