Gold IRA Accounts - Why You Must Protect Your Retirement Fund
1. GOLD IRAs
1. Why You Must Protect
Your Retirement Fund?
Another presentation in the FREE online series from GoldAssets24.com
<< FREE GOLD INVESTING KIT FOR ALL READERS >>
2. These days, Americans are very much on their own for
retirement as very few companies offer pensions for their
employees.
While Social Security is still around, this program is
looking shaky financially and doesn’t provide that much
retirement income anyway.
This is why it’s more important than ever for you to
build, control and protect your own retirement fund. The
problem is traditional investments like stocks and bonds
have serious issues that make it very hard for Americans
to save for the future.
3. A better way to plan for your retirement is to set up
your retirement fund through a Gold IRA.
What Is a Gold IRA?
A gold IRA is a type of retirement account invested
mainly in gold or gold-related investments.
This investment uses the Individual Retirement
Account, a retirement plan available to Americans
outside of their work.
This means that anyone can open a Gold IRA.
4. Investing in gold through an IRA makes sense for
retirement because these accounts have a number of
extra tax advantages.
Tax Benefits of a Gold IRA
The IRS set up the IRA with a number of great tax
benefits.
By using an IRA to invest in gold, you can earn a
significantly better after-tax return than if you just
invest in gold through a regular brokerage account.
5. The IRS ruled that it’s ok to own physical gold, gold
ETFs (or Exchange-Traded Funds) and gold stocks in an
IRA so you won’t have any trouble setting one up.
There are two types of IRA:
• the ‘Traditional IRA’ and
• the ‘Roth IRA’
Depending on which account you use, you’ll receive a
different tax benefit. For the ‘Traditional IRA’, you get
a tax deduction for putting money into the plan.
6. That means that every time you buy gold for your
Traditional IRA, you’re lowering your income tax bill at
the same time.
You don’t get a tax deduction for putting money into a
Roth IRA. Instead, this account pushes off your tax
deduction until retirement.
When you take out money from a Roth gold IRA in
retirement, your entire withdrawal is tax-free. That
means you will never owe income tax on your gold
earnings.
7. When you take money out of the Traditional
IRA, you’ll owe income tax on your withdrawals.
The Traditional IRA reduces taxes while you are
working whereas the Roth IRA reduces taxes in
retirement.
Both IRAs also offer another tax benefit. As long as
you keep your money in an IRA, you won’t owe taxes
on your gains. This means if you sell off some gold to
buy something else for your account, you won’t need
to pay capital gains tax.
8. << FREE GOLD INVESTING KIT FOR ALL READERS >>
<< TIME LIMITED OFFER - CLICK HERE NOW >>
9. If you made this same transaction in a regular
brokerage account, you’d need to pay taxes on your
gold gains, even if you move the money straight into
another investment.
Gold IRA Contribution Rules
There are a few rules to keep in mind for investing in a
gold IRA. First of all, there is a limit to how much you
can add to your account per year. As of 2013, you can
invest up to $5,500 a year if you are younger than 50
or up to $6,500 a year if you are 50 or older.
10. This limit applies to both your Traditional and Roth IRA
contributions so if you invest $5,500 into a Traditional
IRA, you won’t be allowed to add anything into your
Roth IRA that year.
In addition, a gold IRA also has income restrictions.
You can’t invest in a Roth IRA if you are single and
make over $127,000 or are married and make over
$188,000 per year. The Traditional IRA only has an
income restriction if you have a retirement plan at
work, like a 401(k) or work pension.
11. If you have a retirement plan at work, you can’t add
money to a gold IRA if you are single and make over
$69,000 or are married and make over $115,000 per
year.
If you don’t have a retirement plan at work, you can
invest in a Traditional Gold IRA regardless of how
much you earn.
Gold IRA Investing – A Safe Yet Profitable Investment
Investors are in a tough spot if they put their
retirement fund into traditional assets.
12. Just a few years ago, the stock market had one of its
largest collapses in history.
This devastated the retirement plans of most
Americans and forced many to push off retirement.
While the market is currently doing a bit better right
now, future market fluctuations are a certainty.
On the other hand, safer assets like bonds or CDs
don’t look much better. The yields on these accounts
are at near historic lows.
13. If you put your retirement fund into these types of
investments, you’ll barely earn any money at all and
won’t reach your financial goals.
Gold gets around both these problems.
Over the last 10 years, gold has averaged a return of
about 14.5% per year, a great return compared to
other assets.
The demand for gold in the developing world has been
extremely high so this upward price trend is likely to
continue.
14. Gold also provides safety against a market crash.
When the stock markets fall, gold prices often rise.
Investors tend to flee to gold when other investments
do badly.
By putting some of your retirement fund in gold, you
will be hedging against market downturns.
Gold IRAs – Protect Your Savings from Inflation
Another risk for your retirement fund is inflation.
Inflation is when the purchasing power of the dollar
goes down.
15. << FREE GOLD INVESTING KIT FOR ALL READERS >>
<< TIME LIMITED OFFER - CLICK HERE NOW >>
16. This happens when there is too much money in the
American economy which pushes up prices and causes
the buying power of each dollar to fall.
Inflation is bad for the stock market, and especially
bad for American companies.
Since companies earn dollars, there actual profits fall
because inflation eats into their margins.
Inflation is also a problem for fixed interest
investments like bonds and CDs.
17. Since these assets pay a set percentage each
year, inflation damages their annual return.
For example, if a bond pays out 6 percent a year when
inflation if 5 percent, an investor is actually only
growing his money by 1% each year after inflation.
If inflation is high enough, you could actually be losing
money by putting it into a bond or CD.
Gold is a fantastic hedge against inflation. Since there
is a limited supply of gold in the World, its value isn’t
hurt by inflation.
18. If inflation causes the dollar to be less valuable, it just
pushes up the dollar price of an ounce of gold. As a
result, gold is a good investment during times of high
inflation.
Will inflation be a problem going forward? Consider
what’s going on in the US economy right now.
The government is running up record debt levels while
the Federal Reserve has been printing an almost
endless supply of new money to support the economy.
19. These two actions are almost certainly going to hurt
the value of the dollar and create higher inflation at
some point going forward.
The best way to protect against this upcoming
problem is to move your retirement fund into gold.
How to Invest Your IRA into Gold
There are a few ways to invest your IRA into gold.
You can buy physical gold, a gold ETF, or stock in a gold
mining company.
20. Physical gold is an actual piece of gold like a coin or
bar.
A gold ETF is a type of investment fund that tracks the
price of gold.
These funds take money from investors and buy
physical gold or gold related stocks so when the price
of gold goes up, so does the value of a gold ETF.
Stock in a gold mining company also follows the price
of gold because when gold becomes more
valuable, these companies earn a higher profit.
21. It is easier to buy a gold ETF or gold mining stock than
it is to buy physical gold for your IRA.
Most brokerage firms let you buy gold ETFs or gold
mining stocks with a simple transaction.
However, major brokerage firms don’t offer physical
gold for their accounts.
To invest your IRA in physical gold, you need to find a
management firm that offers this service, known as
your IRA trustee.
22. There are a number of different companies that do sell
and manage physical gold for IRAs so this is definitely
a possibility for your retirement savings.
Investing Your Other Retirement Accounts into Gold
If your retirement savings are in a work retirement
plan, like a 401(k), it will be a bit trickier to invest your
money in gold.
When you use a work retirement plan, you can only
put your money in investments that your employer
has approved.
23. Some plans offer some gold related investments like
gold mining stocks or ETFs while other plans don’t
provide any options for gold.
As long as you work for the company that offers the
401(k), you are limited to the investments in the
401(k) plan.
Hopefully, there are some gold options. If there
aren’t, ask your company’s benefits department if
they could add gold investments to the plan.
They may be willing to make this addition.
24. << FREE GOLD INVESTING KIT FOR ALL READERS >>
<< TIME LIMITED OFFER - CLICK HERE NOW >>
25. Your best bet is to move your retirement savings into
gold is when you eventually leave the company.
At this point, you can make something called a 401(k)
rollover.
When you make a 401(k) rollover, you transfer your
savings into another retirement plan.
One option is to move your balance into an IRA.
If you move into a Traditional IRA, you won’t owe any
taxes for making this move.
26. If you want to move into a Roth IRA, you’ll need to pay
income tax on your savings that year; you need to
fund a Roth IRA with after-tax money.
Since an IRA gives you the flexibility to invest in
gold, this is your chance to make a gold 401(k)
rollover.
Disadvantages of Using a Gold IRA
The main issue with using an IRA for your retirement
savings is that these accounts limit when you can take
money out. You are supposed to keep your money in
your IRA until you are at least 59 1/2.
27. The IRS decided that this was the age when Americans
could start making retirement withdrawals.
It doesn’t matter whether you are working or not.
Any withdrawal after 59 ½ is considered a retirement
withdrawal whereas any withdrawal before 59 ½ is
considered an early withdrawal.
If you need to take an early withdrawal from your
Gold IRA, you’ll owe income tax plus a 10 percent
early withdrawal penalty on the money.
28. For the Traditional IRA, you’ll owe this tax and penalty
on your entire withdrawal.
For the Roth IRA, you’ll just owe the tax and penalty
on your investment gains. Since you put after-tax
money into the Roth IRA, you can take out your
contributions tax-free.
Gold IRA Early Withdrawal Penalty Exceptions
There are a few times when you can take money out
of your gold IRA early and avoid the 10 percent
penalty.
29. You can make penalty-free withdrawals if you become
disabled.
You can also use your gold IRA funds to cover medical
expenses that exceed 7.5% of your adjusted gross
income for the year.
If you or a family member goes to college, you can use
the IRA funds to cover these expenses.
Lastly, you can take up to $10,000 from your gold IRA
to pay for your first home. These withdrawals avoid
the penalty, but still are charged income tax.
30. While setting up a Gold IRA takes some planning, it’s
definitely worth the effort.
These accounts protect your retirement account, earn
a decent rate of return, and offer a number of tax
advantages.
If you’re interested in gold investing or are already
considering your various IRA options, then we would
like to send you your free, no obligation gold investing
kit courtesy of our partners at Regal Assets who have
been helping gold investors for over 50 years.
31. This invaluable kit gives you all the information you
need before investing in a gold IRA, physical gold or
other precious metals.
32. All you have to do is CLICK HERE or on the link
below, submit your name and email address and we’ll
do the rest. This is a time limited offer so ACT NOW to
get yours!