Can I Convert My IRA into Gold?
This might very well be the question running through your head at this time, and it very well should be, indeed. When planning for your retirement, you can never be too safe. This is, after all, your retirement we’re talking about.
The good news is that you can, in fact, convert your IRA into Gold. However, it will require a little bit of work on your part. As long as you keep your wits about you and take every precaution, converting your pre-existing IRA into gold should cause no issues.
How Do I Convert My IRA into Gold?
The common wisdom regarding this issue dictates that, in all cases, you must first open a new IRA account that is specialized in handling gold as an investment. There are specific financial institutions that make this kind of investment (not just any one will/can provide such services), and the requirement for closing the deal is that you must buy physical Gold Bullion, either in the form of Gold Bars or Gold Eagle Coins. However, when weighing your choices you should proceed with caution.
Once your new Gold IRA has been created, it is then possible to ask for what is called a Direct Transfer. A Direct Transfer is handled between the custodians of your two separate accounts, ideally involving no “middle man” at any point in the process. Direct Transfers are the safest means of switching your old IRA into your new Gold IRA, as the entire process is only handled by two people – each of whom is legally bound to make sure your money/gold gets from Point A to Point B.
What do you mean, “proceed with caution”? Is this risky?
Like any other venture, one should always be mindful of with whom he/she does business. While the prospect of some gold vendor selling you gold without much effort sounds appealing, but there are a few pitfalls I should warn you about. Trust me: While it might take longer to set up a Gold IRA using the necessary precautions, you will thank me later.
Beware Gold Eagle Coins: I made mention of the Gold Eagle Coins earlier, but I did not mention their drawback. Many Gold Vendors will only sell you gold in the form of these coins; however, while their value is the same as the cash you paid for them, the insurance coverage (should anything happen) has a startlingly fixed rate of $50 per coin.