If you are looking to invest your savings into a gold IRA then you have come to the right place.  This article will cover the benefits of getting a gold IRA and the steps through which you can set up your gold IRA account and start your investment into gold.

Benefits Of Gold IRA

Rolling over your funds from 401(K) to a precious metals or gold IRA, opens up new investment opportunities for you. Gold IRA allows you to invest in a wide array of investment options including physical gold. 

Investing in gold has the greatest benefit of protecting your investment from losing the value in the event of a financial crisis. Whenever a financial crisis hits the global or local economy, stocks plummet and investment options lose their value, resulting in losses for investors. Gold on the other hand retains its value because its value comes from its rarity and demand across multiple sectors and industries. By investing in gold you can protect your investment from losing its value. 

Investing in gold delivers its return in the form of capital appreciation. Data suggests that in the last two decades the value of gold has appreciated by over 400%, this is exciting news for investors because you will not find this rate of return anywhere else in the market. So while preserving your investment and saving it from being eroded away, gold actually multiplies your wealth and gives you a greater return over time. 

Drawbacks Of Gold IRA

Strictly speaking, gold IRA is not for those looking for a quick return. You may get a quick return if you are lucky and the market tanks driving gold upwards but coming across such luck requires patience and this why gold IRA investment is for those investors who are in this for the long run. If you can invest and hold your investment for a long period, then this is for you. 

There are no periodic or annual returns on gold investment like the dividend income on shares or interest income on bonds. You may get periodic returns if you invest in the stocks of gold mining companies, gold exchange traded funds or gold options but in all of these cases you will not be able to own physical gold. 

How To Set Up A Gold IRA

Now that you know the pros and cons of investing in gold through a gold IRA, let us look at the actual process of setting up a gold IRA. 

Before you set up your gold IRA you must first ask your employer or your fund manager to make sure that you can legally rollover your fronds from your traditional IRA or 401(k) to your gold IRA because some employers do not allow the rollover to take place, at times when you are carrying forward your 401(K) from your previous employers, there may be some restrictions. So it is better to check these details first to avoid complications later on. 

Look For A Reliable Gold IRA Company

If everything is in order with your 401(K) then you can proceed to the next step and that is of finding a reliable company to open your gold IRA. There are numerous companies that offer the service of opening up a gold IRA account. In attempts to outdo their competitors, companies offer different services and rates so make sure you carry out proper market research and due diligence before settling with the gold IRA company of your choice. Remember that you will trust which ever company you choose with your retirement savings, so you need to choose a company you can trust with your life savings. 

A good way to check is to see the processing times and the expertise level of the company. You can look for online reviews. Rating agencies like Trust Pilot and Better Business Review are trustworthy reviewing agencies and they review these companies from every aspect. You can also call up the company and inquire about anything specific that you want to find out about them. 

It is always a good thing to know if the gold IRA company you are interested in has got legal and technical expertise in gold IRA investment or not. Roll over can be a technical process and needs to be handled well, if the gold IRA company of your choice has got legal and technical expertise then it is likely that they are professionals who can be relied upon. 

Once you have chosen the gold IRA company, next up you have to set up your account, which can be a fairly straight forward process. Most companies take 1-2 business days to set up your account. They conduct a short interview over phone to get your credentials and you may have to visit their office to sign a few documents and this is all it takes to set up your gold IRA account.

Search For A Reliable Custodian

Next step is to find a gold custodian. According to IRS law, gold in a gold IRA account cannot be kept in person. It has to be deposited with a custodian or a trustee. Legally banks, credit unions and brokerage houses can act as custodians. Once again, it will be better to carry out market research and due diligence before you choose your custodian because your custodian, like your gold IRA provider will also be in charge of your retirement savings. 

It must also be kept in mind that you can only rollover your funds once every 12 months. So if you choose a custodian or a gold IRA and then feel like your choice wasn’t good and you want to move on to another IRA provider or custodian then you will have to wait for 12 months to pass before you can make your move. 

Purchase The Gold

Once you have chosen you custodian. Now you simply have to look for a suitable broker or gold seller and buy the approved gold bullion. Once you have purchased your gold, the invoice will be sent to your gold IRA provider and the gold will be delivered to your custodian and this manner you can keep investing in your gold IRA. You can also liquidate your investment in gold at any time.