What is a Gold IRA Rollover?
In the United States, people are allowed to open an individual retirement account (IRA). Your IRA account is your retirement account. Your IRA is where you put your forced savings so you can invest those savings to grow your money.
The key objective is to grow your money to a high enough level that you can retire comfortably. However, the problem with most retirement accounts is that they vary from employer to employer. These are usually 401(k) small accounts.
Since most Americans hold more than five to eight jobs in their lifetimes, you can not assume that you will just be working for one employer for the whole of your life.
Chances are you will be bouncing from employer to employer. If you work for a technology company or an internet company, your bouncing frequency from employer to employer is relatively high.
Moving Funds From 401(k) to IRA
Every time you change from one employer to another, you leave a 401(k). You do not want to orphan these retirement accounts. Why? They have money in them. This is why the IRA rollover account was invented.
You take all your 401(k)s, and you roll them over into one IRA. The good news is that now you can invest in gold and take advantage of the investment benefits of gold by using IRA rollover vehicles.
You roll over your 401(k)s into a central IRA rollover account in a thumbnail. You can then use the IRA rollover account funds to buy gold stock, physical gold, gold bullion, or gold coins.
IRA Custodian is Required
As mentioned above, the IRA rollover account is an aggregation of otherwise orphaned 4012(k) accounts or other retirement vehicles from your employers or your accounts.The IRA has many benefits for retirees.
You pool these together. However, you need to have a financial institution to act as a custodian of your IRA rollover account. You can not just put it in your bank account. You might violate all sorts of laws and regulations if you do that. You have to retain a government accredited and approved IRA custodian to oversee your central IRA account.
Rolling Over a Portion of Your IRA Into Gold and Silver Metals
Now that you have collected all your funds, you have to instruct your IRA custodian that you will be investing in gold. Usually, this is not a problem.
If you invest in exchange-traded funds for gold or gold mining stocks, this is not an issue. Your gold IRA rollover account functions like a mutual fund. Don't forget to read up on retirement planning for your gold IRA.
The complication arises when you are going to invest in physical gold. There are all sorts of insurance issues, fees, storage issues. Also, it could get quite complicated if you are going to invest in gold coins.
Why? Whenever you invest in collectibles, there are going to be appraisal issues. Exiting the investment may not be as easy as you initially thought. Gold bullion is a critical consideration when tackling the subject of a gold IRA rollover. It is not as easy as you may think.
You have to coordinate closely with your IRA custodian. Setting up a gold IRA with your custodian must be done the proper way.