Buying Silver and Gold from 401k
Traditional retirement investments, such as stocks, mutual funds and ETFs, are extremely volatile. This volatility unfortunately creates risks that you understandably want to mitigate. With diversification in gold and silver coins and bullion, you can more fully round out your retirement portfolio. What is involved in adding gold and silver to your retirement assets?
Taking Advantage of Gold and Silver in Your Retirement Assets
If you are like many people who are actively planning for retirement, you may have spent at least the last few years accumulating wealth in a traditional 401k account. These funds are traditionally invested in paper assets, such as mutual funds, stocks and other similar options. While the stock market has historically trended upward over the long term, this volatility can create unnecessary risk for those who are planning for retirement.
Gold and silver have historically been great hedges against inflation as well as deflation. Their values also fluctuate over time with a general trend upward, but volatility is far less significant. By choosing to invest in gold and silver, you are diversifying your portfolio into less risky assets that have traditionally held their value well in times of uncertainty.
You cannot invest in gold and silver coins and bullion in a traditional 401k. These accounts are specifically for paper assets. How can you add gold and silver to your retirement assets? A gold IRA is a special type of retirement account that comes with all of the benefits of a traditional IRA, but it allows you to invest in physical assets, including gold and silver bullion and coins. These assets are stored on your behalf at a depository. Depending on the company, the gold and silver can be bought and sold either online or by phone, and the assets will be transferred to and from the depository without any direct involvement by you required.
Keep in mind that there are benefits associated with storing your precious metals assets in a retirement account. For example, you can enjoy tax-deferred growth. You will not pay taxes on the growth in your account until you make a withdrawal. This means that you can buy and sell gold and silver inside your IRA without taxation liability. You will pay taxes on the growth when you take distributions.
Completing a Gold or Silver IRA Rollover
Now that you have decided to take advantage of gold and silver investments in your retirement assets, you understandably need to know the steps required to make that happen. You can see that opening a gold IRA account is an important step. Before you open your account, however, it is important to choose the right gold IRA company to work with. Just as financial institutions that offer traditional 401k accounts vary in terms of asset options, fees, services and more, the same holds true for gold IRA companies.
Once you know which gold IRA company you want to use to open your new retirement account, you must walk through the steps to create the account. For many, but not all, gold IRA companies, you can completely set up your new account online. In fact, this aspect of the process could only take a few minutes to complete.
After your gold IRA account has been established, you must transfer your 401k assets to your new account. Be aware that you do not have to transfer all of those assets to the new account. In fact, for the sake of diversification, it may make sense for some investors to maintain both a traditional 401k and a gold IRA. With this in mind, you need to decide on the best allocation for your investment objections and risk tolerance. Then, you need to connect with your new gold IRA company to begin the funds transfer process.
You must walk through the appropriate funds transfer steps in a timely manner in order to avoid triggering a penalty. There are two types of conversion methods, and these are a direct conversion and an indirect conversion. With a direct conversion, your new gold IRA company will handle all aspects of the funds transfer on your behalf. With an indirect conversion, the 401k funds will be transferred to you, and you will need to transfer them to your new gold IRA account. You can only have access to these funds for up to 60 days without triggering a penalty.
When you connect with your gold IRA company to set up your new account, you will need to complete a few steps over the phone. Then, some paperwork may need to be signed by you. Once the documents have been signed, the process of transferring the funds will begin.
Choosing the Right Gold IRA Company
There are several respected gold IRA companies available for you to compare and choose from. While they all have some shared traits, they are notably different in key areas. These differences may impact how quickly your assets grow in value and a variety of other factors. As you research gold IRA companies, what are some of the most important factors to consider?
Your access to different types of investments is crucial when you are searching for the gold IRA company that is right for you. Some gold IRA companies only offer gold as an investment option. Others may offer one or several other options, including silver, platinum and palladium. Keep in mind that the types of coins and other variations may also be present. In most cases, you can browse through the investment opportunities before opening your account.
The fees also should be considered. Some companies do not openly publicize their fees, so you may need to call the customer service department to get firm details. Look for annual account service fees and storage fees. In addition, some gold IRA companies charge a transaction fee for each purchase or sale that you make. Others build this transaction fee into the pricing of the precious metal. In order to determine which gold IRA company has the most affordable fees overall, it is important to compare the total costs of purchasing and selling the assets.
There are several other important differences between gold IRA companies that you should look for. For example, you should read online reviews and look at ratings with top independent platforms and organizations. You may also look at the storage depositories that different gold IRA companies use. Generally, the best depositories are those that are located outside a major urban area. They should have several layers of security measures in place. For example, they may have secure vaults, gated facilities with premises security and on-site guards.
Buying Gold and Silver in Your New IRA Account
After your gold IRA account has been funded, you are free to make your purchases as desired. With many gold and silver investment companies, you can purchase the assets entirely online. All aspects of the purchase, including the assets’ transfer to the depository, will be managed online. Select gold IRA companies, however, require you to communicate directly with a customer service agent to complete the transaction. While this may seem like an inconvenient extra step to some people, keep in mind that these customer service representatives may offer educational assistance. This may make it easier for investors to make a well-informed investment decision. At the same time, it provides the ability to inquire about transaction-related fees and other important aspects of the investment.
You should be aware that gold and silver have historically appreciated in value at different rates. Nonetheless, it may make sense to diversify your assets into multiple investment vehicles. In addition, some of these investments may hold their value or appreciate in value more quickly than others. For example, bullion is often more challenging to sell because of its size. Coins, on the other hand, are smaller and easier to trade. Even among coins, however, there are important differences that you should learn about. Many gold IRA companies offer a variety of educational resources to aid in your decision-making processes.
In many cases, gold and silver investors will retain their investments for years or even decades. However, there will come a time when you want to liquidate your assets by selling your gold and silver. This process may be easier to do with some companies. This is because some gold IRA companies have a strong buyback program. After the assets have been liquidated, you are free to take distributions as you would with any other type of approved retirement account.
Top Gold IRA Companies
While it only takes a few minutes in most cases to open a gold IRA account, you should not rush through the preliminary process of choosing the right company to work with. Because of variations in fees, the availability of assets and other factors, your selection of a gold IRA company can impact how profitable your investments are going forward. There are several leading gold IRA companies that have solid reputations, great product availability and excellent customer service. As you explore the gold IRA companies in detail, these are the companies that should be at the top of your list of options.
Goldco Precious Metals
Goldco Precious Metals is well-known for providing white-glove service to its customers. In addition to providing elite customer service to each customer, this gold IRA company strives to help customers make educated investment decisions through its knowledgeable customer service agents and its online educational resources.
- Many educational resources offered online
- Premium customer service
- Excellent fee structure
- Free silver coins available to new accountholders
- A solid buyback program
- A minimum investment is required
- Gold and silver are the only investment products available
About Goldco Precious Metals
Goldco Precious Metals, which was founded in 2006, stands apart from many other gold IRA companies in several key areas. This company has maintained a stellar reputation throughout its history for providing premium customer service to its customers. Its many friendly customer service agents are each knowledgeable professionals who take pride in providing top-notch service to Goldco Precious Metals’ many customers. Because of the solid experience that it provides to each customer, it has rightfully generated many positive online reviews and excellent ratings with Trustpilot, Consumer Affairs and others. It also has an A+ rating with the Better Business Bureau and an AAA rating by the
Business Consumer Alliance.
The primary objective of each customer service representative is to help customers make savvy, well-informed investment decisions. These representatives are actively involved with the customer experience from day one by facilitating the rollover. While customers can complete online transactions at their convenience, customer service agents are standing by to assist with transactions and to answer questions. There are also many educational resources available on the Goldco Precious Metals website for customers to access. These resources include frequent blog posts as well as videos and even e-books. A complimentary starter guide is also available to new investors, and it may answer many of your questions about the investment options that are available through Goldco Precious Metals.
Notably, Goldco Precious Metals has a strong buyback program. Specifically, it guarantees the highest buyback price to its customers. With this in mind, investors can complete their transactions through this gold IRA company with confidence.
Augusta Precious Metals
Augusta Precious Metals stands apart from other gold IRA companies with its commitment to maintaining transparency through its pricing. The company prides itself on its competitive fees and on helping customers maximize the profitability of their investments.
- Transparency across fees and 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
- Gold and silver are the only investment options
About Augusta Precious Metals
Augusta Precious Metals recognizes the critical role that fees play in its customers’ investment activities. This gold IRA company, which is family-owned, strives to maintain complete transparency with its fee structure as well as its transaction costs. All transactions are completed by phone with the assistance of a friendly customer service agent. As a result, the agent is on-hand to answer questions about investment options, fees and more before the transaction is made. There is no management fee because IRAs through Augusta Precious Metals are self-managed.
This company also provides exceptional customer service throughout the IRA setup process. In fact, it takes pride in the fact that 95% of the setup process is completed in-house, and this leaves new account holders only responsible for light paperwork. Through this hands-on approach to customer service from day one, Augusta Precious Metals has maintained excellent ratings and received many positive reviews. In fact, it has benefited from the highest rating offered by BCA. It also has an A+ rating with the Better Business Bureau and an overwhelming number of five-star reviews on Google My Business and TrustLink.
This gold IRA company was founded in 2012, and it offers other benefits to its customers. For example, it provides a 7-day price protection guarantee. It also offers security at your choice of several depositories across the country. There are a variety of gold and silver investment options available, including coins and bullion. This includes several IRA-eligible options. In addition, Augusta Precious Metals has a reasonable buyback program.
Birch Gold Group
Birch Gold Group consistently focuses on maintaining exceptional customer service standards with a strong focus on delivering a wonderful experience for each investor. It offers a robust range of products and numerous educational options for its customers to take advantage of.
- Quality customer service
- Numerous educational resources only
- Many investment products available to choose from
- Concealed fee structure
- Requires a minimum investment
About Birch Gold Group
Founded in 2003, Birch Gold Group is among the largest gold IRA companies serving the United States. This Burbank-based company has supported more than 13,000 customers with their investments of precious metals over the years. It provides several investment options in addition to gold coins and bullion. For example, investors can also purchase palladium, silver and platinum through Birch Gold Group. These options make it easier for customers to establish and maintain diversity in their IRAs.
While pricing is clearly displayed for all products, fees are difficult to uncover. Despite this, the company’s focus on providing quality customer service from the IRA setup process and on has earned it excellent rankings and reviews. In addition to its A+ score with the Better Business Bureau, Birch Gold Group is well-rated with the BCA, Trustpilot and TrustLink.
Birch Gold Group also excels in other important areas. For example, it provides its customers with two depository options. The precious metals may be stored through Delaware Depository or Brink’s Global Services. Another key benefit that investors can enjoy through Birch Gold Group is its educational resources. In addition to providing a free information kit to new customers, this gold IRA company offers expert interviews and other educational resources online.
RA Wealth Partners
As a division of Regal Assets, RA Wealth Partners is a trusted portal to a top-rated gold IRA company. It prides itself in offering several investment options and in its focus on meeting each customer’s individual needs.
- Offers hands-on assistance with IRS rollovers
- No fees for account rollovers and transfers
- Low, flat fee for storage and account management fees
- Purchases must be made via phone
- Required minimum investment
About RA Wealth Partners
RA Wealth Partners is strongly affiliated with Regal Assets, which is a gold IRA company that was established in 2019 and that has strong professional ratings and customer reviews. In addition to the many glowing reviews on third-party websites, Regal Assets boasts an AAA rating with the Business Consumer Alliance.
RA Wealth Partners is known for providing exceptional service throughout the rollover process. This fine-tuned process is accompanied by a policy of no rollover or transfer fees to create a truly exceptional account setup process. In addition to helping its customers establish their accounts, RA Wealth Partners works to keep hard-earned money in its customers’ hands. After gold IRAs have been established, RA Wealth Partners has modest fees with a straightforward structure. Specifically, the flat fee is $250 annually. This covers storage and service fees. While RA Wealth Partners maintains a minimum investment amount, there is no transaction fee for buying and selling assets.
RA Wealth Partners also excels in another key area. It strives to make the customer experience hassle-free and productive. This is accomplished through the excellent service that it delivers to each customer. This includes from the account setup step and throughout a customer’s many years with the company. While customer service representatives are available over the phone to assist with investments and to answer questions, RA Wealth Partners also has several online resources that customers can refer to at their convenience.
Noble Gold Investments
Noble Gold Investments maintains a reasonable investment requirement, flat fees and great customer service. As a result, it has developed a strong reputation with new investors and smaller investors.
- Low investment requirement
- Competitive, flat fees
- Great customer service
- Flat fee results in a disproportionate structure for smaller investors
About Noble Gold Investments
Founded in 2016, Noble Gold Investments has garnered positive attention from its investors and independent platforms. For example, it has a BB rating with the BCA and a five-star rating with Consumer Affairs. You can also find a plethora of positive reviews on third-party customer review platforms.
Notably, Noble Gold Investments has a great structure that is well-suited for both new and established, smaller investors. This includes a low minimum requirement for investors and low, flat fees. Regardless of the size of the customer’s account, there is a $150 storage fee and an $80 service fee charged annually. While the fees are competitive, the nature of a flat fee makes them disproportionate for those with a smaller account balance.
In addition to its impressive fee structure, Noble Gold Investments maintains its popularity with new and smaller investors because of its commitment to educating investors. It offers a complimentary investment guide for new account holders to take advantage of. This is combined with numerous other online educational pages. A dedicated financial advisor is also assigned to each account holder to facilitate transactions.
The IRA company utilizes International Depository Services to securely store its customers’ precious metals, and this depository has locations in the United States and Canada. Noble Gold Investments also has a great buyback program for the benefit of its customers.