Diversifying your retirement portfolio has significant benefits that you understandably want to take advantage of. Gold has long been used as a hedge against inflation to round out investment portfolios. By rolling over your 401k funds into a gold IRA, you can take advantage of the many benefits of investing in gold.
Through regular contributions made to your 401k retirement account over previous years, you may now have a solid nest egg that is comprised of stocks, mutual funds and other paper assets. However, there are notable disadvantages to these types of investments. For example, the value often fluctuates, and some of these fluctuations can result in a significant loss of assets. As you near retirement age and after retirement, navigating through such fluctuations becomes a stressful challenge and could place your financial security at risk.
Diversifying your portfolio with an investment in physical gold is a relatively simple process. Through a rollover, you can transfer some of your 401k funds into a precious metals IRA. Through your new gold IRA, you can conveniently take advantage of the benefits of gold through the purchase of physical coins and bullion.
An overview of the best Gold IRA companies:
Many educational resources offered online, premium customer service, excellent fee structure, free silver coins available to new accountholders, solid buyback program
A minimum investment is required
Transparency across fees & transaction pricing, competitive fees, money-back guarantee, hands-on customer service, many educational resources offered
Transactions must be completed over the phone, limited IRA-eligible investment possibilities, only offers gold & silver investment options
Quality customer service, numerous educational resources, many investment products available
Concealed fee structure, requires a minimum investment
Offers hands-on assistance with IRA rollovers, no fees for account rollovers & transfers, flat fee for storage & account management
Purchases must be made via phone, required minimum investment
Low investment requirement, competitive & flat fees, great customer service
Flat fee results in a disproportionate structure for smaller investors
Why You Need to Work with a Gold IRA Company
You do not need to open a gold IRA to purchase gold as a physical asset. For example, you can order gold coins and bullion online, and these can be delivered to your home. Once they arrive at your home, you can stash them in your personal safe. When you are ready to convert the gold into cash, you can then go through the process of selling the coins and bullion.
While this sounds simple enough, there are disadvantages to buying gold outside of a gold IRA. For example, you will not take advantage of the tax benefits that are associated with buying and selling coins and bullion unless you do so within an IRA. In addition, the matter of physically storing and securing gold and bullion can be a challenge. As your gold assets grow, the limited space available in your personal safe becomes a problem. You also may not feel comfortable storing such significant assets at home where they may be more likely to be stolen. When you purchase gold through a gold IRA company, the assets will be stored for you in a secure depository. These depositories often have multiple layers of security so that theft becomes very unlikely. They also have ample space available to hold all of the gold coins and bullions that you accumulate in your portfolio over the years.
Selling gold coins and bullion can be more challenging when you do so independently. You must identify a buyer, ship the assets to the buyer securely and complete the financial transaction. On the other hand, gold IRA companies have a secure and convenient process. This process may vary from company to company, but many gold IRA companies have a secure, guaranteed buyback policy. Selling coins and bullion can be done online or over the phone without a hassle.
Top Gold IRA Companies
There are a number of gold IRA companies that you could choose to open an account with. However, each company has unique advantages and drawbacks for you to consider. These may be related to fees, how transactions are completed and other factors. As you explore the many precious metals companies that are available for you to use, consider focusing your attention on some of these top gold IRA companies.
Goldco Precious Metals
Goldco Precious Metals has been a leading gold IRA company since it was established in 2006. Over the years, this Virginia-based company has accumulated numerous positive reviews from satisfied clients, including on Google, TrustLink and Trustpilot. It specializes in both gold and silver IRAs, which gives you the opportunity to further diversify your portfolio with both types of precious metals. Through this company, you can invest in both coins and bars at wholesale prices. Because Goldco Precious Metals does not work with intermediaries, IRA investors are able to lock in great pricing that may be more advantageous than what you could find with some of the other gold IRA companies.
This company is highly rated among consumers, and it also has maintained its A+ rating with the Better Business Bureau for years. This company is also a member of the National Association of Gold Dealers. Goldco is the 2021 Company of the Year recipient of the Stevie Awards, and it has received recognition from Inc. 5000 for five years.
Goldco is widely known for providing exceptional customer service to its customers. The great investment experience that it provides goes beyond simply selling gold and silver assets at competitive prices and offering excellent service. The experience extends to the transaction process. Investors can choose to make their purchases completely online if they prefer, or they can receive personalized assistance with transactions over the phone. Many other gold IRA companies require all transactions to be completed over the phone, and some investors may find that this is inconvenient. Goldco also has an excellent buyback program for precious metals with a guarantee of offering the highest buyback price. Plus, the Goldco Precious Metals website is loaded with news and articles, and this makes it easy for you to stay informed of market conditions and opportunities. You can conveniently order a kit for new investors through the website as well.
Augusta Precious Metals
Augusta Precious Metals was founded more than a decade ago in Washington, and it has grown to become a popular, respected gold IRA company. In fact, thousands of five-star reviews have been left by satisfied clients on review sites like Google, TrustLink and others. Its excellent customer service begins when you set up your account. Initially, you will receive the team’s full support as you set up your new account. In fact, more than 95% of the efforts are completed in-house by the Augusta Precious Metals team.
Investors have the ability to schedule a phone conference with Devlyn Steele, the company’s on-staff Harvard economist. The website is also a great source of information with tons of quality videos that you can use for education. In addition, customers are serviced throughout the life of their accounts by the same dedicated analysts and customer service agents for continuity. These knowledgeable professionals are often able to provide critical insights related to precious metals investments that you may be challenged to find online.
To open an account with Augusta Precious Metals, you must make an initial deposit of $50,000. Investment fees are waived for the account’s first year. Some additional fees on select investments may be waived for up to 10 years. Investors have several ways to make transactions. Transactions can be completed entirely online or by phone. There is also a direct catalog that enables you to invest by mail. Both gold and silver investments can be made. In addition to purchasing bars, popular coins like the American Silver Eagle, the Canadian Maple and others are available to investors. To start opening your gold IRA with Augusta Precious Metals, simply click on the “Get Started” link online, or contact the company by phone.
Birch Gold Group
Birch Gold Group has been serving the precious metals investment needs of its customers for more than a quarter of a century. The company has more than 13,000 satisfied customers to date, and that number continues to grow regularly. It is highly rated by Consumer Affairs, the Better Business Bureau, TrustLink, Trust Pilot and Business Consumer Alliance.
This family-owned business takes pride in maintaining competitive rates for all of the coins and bullion that it offers, and it is also known for delivering highly professional, knowledgeable customer service to its customers. Its customer service associates are available by phone during convenient business hours to answer questions on the market and to discuss the implications of market changes to your gold IRA. In addition, this respected company is a well-rounded financial firm that is publicly traded that offers a full range of financial services to its customers. These services range from financial planning and estate planning to wealth management, tax planning and more.
This gold IRA company also stands apart from other companies in a few other exciting ways. For example, compared to other companies on this list, Birch Gold Group has a low minimum investment amount required. This makes this company ideal for new gold investors and for smaller investors who are working on amassing wealth while diversifying their portfolios. It also has competitive fees, and this can help you to maximize your overall return on investment.
The website offers a wealth of information for investors to access at their convenience. Birch Gold Group wants each investor to make well-informed financial decisions, so it actively offers a range of articles, interviews with top gold experts, an introductory investment kit and more. New investors can request a free information kit by submitting basic contact information online or by calling the customer service department.
Noble Gold Investments
Based in California, Noble Gold Investments has been meeting the precious metals investment needs of its customers for more than two decades. This company is a great option to consider if you are new to precious metals investments because it has a $2,000 minimum investment and low fees. This is an accredited company with the Better Business Bureau, and it has been recognized as a top-rated company by Consumer Affairs for the last four years. Both TrustLink and Business Consumer Alliance also rate Noble Gold Investments highly.
Through this gold IRA company, investors have convenient access to a range of IRS-approved precious metals. Some of these are American Eagle coins, Canadian Maple Leaf coins, PAMP Suisse Lady Fortuna bars, Austrian Philharmonic coins and Australian Kangaroo coins.
New investors are able to start the account registration process through a short conversation, and the entire process can be completed without hassle with support from Noble Gold Investments’ customer service agents. Each customer service associate is a knowledgeable agent who can offer expert-level insights as well as the full support that investors need with their transactions. The company prides itself on supporting its customers throughout all stages of their investment experiences. In addition to offering insights over the phone, the company provides an exceptional selection of educational resources for investors to access online at their leisure. Topics cover everything from new investor basics to market updates and more.
Before contacting the company by phone for assistance in opening a new account, investors are encouraged to order Noble Gold Investments’ free investment kit and guide. Through this information, investors can learn everything they need to in order to decide if gold investing is right for them. The investment guide and kit are available for immediate downloading through the website.
RA Wealth Partners
Regal Assets is an independently-owned company that has more than 10 years of exceptional experience meeting its customers’ precious metals needs. It is committed to the important goal of helping its investor clients meet their financial objections, and it actively works toward this objective by providing its customers with a full range of precious metals products and services. The company has been featured on Market Watch, Smart Money, Chase, Seeking Alpha, Bloomberg and other notable avenues. It has more than 1,700 positive reviews, and it has received a top-20 placement in Inc. 500’s list of top companies for 2022. In addition, Regal Assets is an official member of the Forbes Finance Council.
Opening a new gold IRA with Regal Assets is easy to do. The process begins with the completion of a quick online application. Within a business day, the Regal Assets team will be in contact to assist with the final transfer of funds that is needed to establish the account. Investors can then work directly with their personal account representatives to complete transactions.
As part of Regal Assets’ commitment to customer satisfaction, it offers a few educational resources for investors to access at their leisure. For example, investors can connect with the financial PhDs that are on staff for assistance in understanding the market and obtaining expert-level insights. There are also a few educational resources available online, which include strategies to avoid scams, tax insights and more. The free information kit that is available to new investors includes a free DVD, a complimentary Forbes investment kit and other great resources. Those who are interested in opening a new gold IRA or who want more information about this option can order an introductory kit online.
Why Choose Gold as a Retirement Asset?
Gold is a celebrated commodity that has been in demand in civilizations for thousands of years. While the value of gold fluctuates to a small degree regularly, it has held a steady upward trend overall throughout its history as a valuable commodity. More than that, price fluctuations are modest compared to other investment vehicles, such as stocks and mutual funds. The stock market has lost more than 25% of its value during some major crashes over the years, and this has historically not occurred in the gold market. More than that, because of gold’s stable pricing, it has served as a great hedge against inflation as well as deflation.
Diversifying your retirement assets is essential. It enables you to navigate more easily through downturns and fluctuations in select sectors of the market. By diversifying into a physical asset like gold, you are protected against a major decline in asset value when the stock market crashes again. With a gold IRA specifically, you can put the benefits of retirement account tax advantages to work for you while optimizing the diversification of your retirement assets. Assets can be bought and solid within the IRA to avoid triggering tax consequences. Assets can also be sold and converted into distributions when you need access to hard cash in your retirement years.
The Benefits of a Gold IRA Rollover
If you are like many other investors who have been regularly contributing to a 401k retirement account, you may have built up a sizable nest egg. These funds, which are often held in stocks, bonds, mutual funds and other paper assets, may be growing in value with tax-advantaged benefits. While you may want to take advantage of the many benefits of investing in precious metals, you understandably do not want to trigger tax consequences associated with liquidating your 401k prematurely. At the same time, you want to continue investing for your retirement in tax-advantaged accounts.
A gold IRA gives you all of the tax advantages that a traditional IRA offers, but it allows you to invest in coins and bullion. Many gold IRA companies have a sizable minimum investment amount. Because of this, it can seem prohibitive to open a gold IRA account with your non-retirement assets. In addition, there are limits to the amount of contributions you can make to a retirement account each year. When you roll over some of your existing 401k funds to a gold IRA, you can reap the benefits of a gold IRA without having to dig into your non-retirement assets. At the same time, you can meet the minimum investment requirement to open a gold IRA without exceeding the annual IRA contribution limits when you choose to do a rollover.
The process of rolling over a 401k to a gold IRA can seem overly complicated at first glance, and this may prevent some investors from taking advantage of this incredible opportunity. In reality, however, the top gold IRA companies have simplified account setup processes. Most processes may be completed conveniently by phone or online in a short period of time.
What to Consider When Choosing a Gold IRA Company
Before opening a gold IRA, you must first determine which of the many gold IRA companies you want to work with. You can enjoy the tax advantages of a gold IRA through any of the companies, but these companies differ in critical ways. These differences can impact your investment experiences, your return on investment and other critical aspects. What should you consider when you are choosing a gold IRA company?
Investment Options: There are a variety of IRS-approved gold and silver coins and bullion that you could choose to invest in. While some gold IRA companies offer the full range of approved products, others may only offer a handful of options for you to invest in. Your return on investment may vary depending on which products you invest in, so it is important to have access to a great selection of possibilities.
Minimal Initial Investment Requirement: Investing in a gold IRA can be prohibitive if you lack the funds to open an account. Even if funds are available for a significant gold IRA rollover, you may not want to deplete your 401k of such a large sum of money. Minimum initial investment amounts can range from $2,000 to $50,000 or more, depending on which company you open your account with. With this in mind, it is crucial that you pay attention to this important factor as you select your gold IRA company.
Annual and Transaction Fees: All gold IRA companies charge various fees to account holders. Commonly, there is an annual fee, which is sometimes called a maintenance fee or a servicing fee. Some gold IRA companies charge an additional fee per transaction. There may also be storage fees, which are not always included in the annual fee. Because the total cost of these fees can be significant in some cases, they can play a direct role in your return on investment.
Investment Transaction Methods: Do you prefer to place orders completely independently, such as through online transactions? Do you want to receive professional insights and dedicated support by making transactions over the phone? While many gold IRA companies offer both of these options to their account holders, some only offer one of these options. This can directly affect your investment experience and should be researched before you settle on a specific gold IRA company.
Customer Service: All of the top gold IRA companies deliver excellent customer service. This generally begins with a convenient account setup process, and it can extend throughout the life of your account. However, your experience in this area can vary. For example, some companies offer a dedicated account servicing representative who is assigned when you set up your account. Other gold IRA companies may simply have a pool of customer service agents that can assist with your needs. The market expertise of these representatives may also vary from company to company.
The Company’s Overall Reputation: All top gold IRA companies are accredited by various organizations and have many positive reviews online. However, some companies are only a few years old while others have been in business for years. The ability of a company to maintain a great customer satisfaction rating and an overall wonderful reputation for a longer period of time is impressive and should be considered.
Tax Rules for Gold IRAs
An IRA, or individual retirement account, is a tax-advantaged account that can help you save money for retirement. With a self-directed IRA, you can invest in a wider range of assets, including precious metals. Contributions to your IRA are made with after-tax dollars. Once you reach the age of 59.5 years, you are able to start taking distributions. This means that you can convert your gold investments into cash by selling them and withdrawing the funds. You will not pay any taxes or penalties for doing so. This means that you will not be taxed on the value growth of your precious metals.
The specific tax rules for an IRA can vary depending on what type of account you choose to open. With a traditional IRA, you are permitted to contribute up to $6,000 annually. This limit steps up to $7,000 once you reach the age of 50. Keep in mind that many gold IRA companies have a higher minimum investment contribution than the maximum permitted contribution amount per year. Therefore, in order to meet the company’s minimum investment contribution, it may be essential to complete a 401k rollover rather than trying to open an account using non-retirement cash.
How to Rollover Your 401k to a Gold IRA
Are you wondering what it takes to roll over your 401k to a gold IRA? The good news is that this process is relatively straightforward, and you can get started immediately. What are the steps that you need to follow?
1. Select your new gold IRA company. Take time to thoroughly research the options with a focus on the key factors described above. These factors will help you to select a company that is a solid fit for your current needs and your investment objectives.
2. Open your new gold IRA. Each gold IRA company has a slightly different process, but most of these processes can be completed within a very short period of time.
3. Contact your 401k provider to request the transfer of funds. In many cases, this process can be completed over the phone, but there may be some paperwork that needs to be completed.
4. Execute the transfer of money so that your new gold IRA is funded properly.
5. Make your first purchase of gold coins or bullions through your gold IRA company.
6. Keep track of all transactions and paperwork so that you have convenient access to IRS-required information when you file your next tax return.
The best gold IRA companies offer personalized assistance with the establishment of a new account. Whether you have questions about the process or you need help walking through the steps, do not hesitate to reach out to your gold IRA company for assistance.
Explore Gold as a Retirement Asset Today
Diversifying your retirement assets with precious metals is a smart step to take. You can conveniently start taking advantage of the benefits of gold as an investment by opening a gold retirement account. To learn more about gold as an investment vehicle or for assistance with the setup of your new IRA, contact your preferred gold IRA company today.