How to Convert IRA to Gold
You’ve seen how the economy has been struggling. You can see that diversification is the key to successful investing. You can see that keeping all of your money in the stock market is a potential recipe for disaster.
It’s a tragedy what happened to so many people in 2007 and 2008 as the stock market and housing markets collapsed. But there’s one thing that we learned more than anything during this time. To put it simply, putting all of your eggs in one basket is a major mistake. It’s time to begin diversifying our portfolios and putting our money into trusted, safe haven investments that have been around since the monetary system began.
What you need to do is simple. You need to change from a traditional IRA account to one that is capable of accepting gold and other precious metals as an investment source. There are a few ways to do this. We will share two methods with you today. Let’s take a look.
Method #1: Transferring the IRA from One Custodian to Another
A simple way to convert your account – or roll it over – is to transfer custodianship from one custodian to another. Ultimately, if your current IRA custodian does not provide the ability for you to invest in precious metals, then you’ll need to transfer custodianship into someone else’s hands. Specifically, someone who will provide you with the capability to invest in metals.
Here’s what you can expect…
Once you find the new custodian and you retain their services, they will send a request to your old custodian. When the request is made, the new custodian will ask for a check in the amount that your individual retirement account is worth.
The check will be made out to the institution for the total amount of your investment. Once the transfer of funds is made and the check clears, the new custodian will then proceed to convert your IRA to gold. You, as the owner of the account, will have the final say in which precious metals are purchased.
The custodian will work on your behalf, to purchase your desired investments and provide exactly what you are looking for as an investor.
When the final transaction is complete, you will then have converted your traditional individual retirement account into an account that is capable of purchasing and investing in metals commodities.
Here’s a nice side benefit…
This type of individual retirement account investment is quite beneficial because the transaction does not have to be reported to the IRS. Any financial gains earned through this account are completely tax-free. That’s one of the many benefits of owning a precious metals account such as this.
Let’s move on to option number two…
Method #2: The Investor Takes It upon Themselves to Initiate a Rollover
This is very similar to the first method mentioned but with one major difference. The investor will be handling the rollover, as opposed to a new custodian.
Ultimately, what happens is you would make a request to your current custodian and ask for a check in the amount of your entire investment, in order to close out the account. You must have the custodian send you the check, in your name.
Once the check is received, you have a total of 60 days to deposit the funds into your new retirement account. If you take longer than 60 days, you will incur penalties. So it’s best to deposit the funds as quickly as possible, in order to avoid paying unnecessary penalties.
You are allowed to make a transaction of this kind once a year. It is also required that you report this to the IRS.
There are obviously only minor differences between the two methods we’ve shared here today. The second method puts you in control of your investments but also puts a lot more responsibility on your shoulders.
Don’t worry if you’ve never completed an individual account rollover because there is help available when you need it.
How to Get Help with the Conversion Process
If you are nervous about taking on this responsibility by yourself, don’t be. You are not alone in this and as soon as you choose the precious metals broker you’ll be dealing with, the sooner you will receive the necessary help to get things underway.
Let’s look at an example, to help you better understand…
Say you decide to choose Regal Assets as your gold broker – and this is a fantastic decision, since they are one of the premier gold brokers online today.
As soon as you contact this company and tell them your plan, they will immediately begin taking steps to make this transition go as smoothly as possible. As a matter of fact, they will handle the entire rollover on your behalf. You will only be required to follow their directions and nothing more.
This makes things so simple for you as the investor and ensures a smooth transition period. This is also a great way to avoid penalties because you’ll be dealing with professionals who have handled such transactions, literally thousands of times.
Hopefully this makes you feel a lot better about the entire process. Having professional guidance, provides you with a lot more confidence in your ability to make this transfer happen without difficulties.
That’s about all there is to it. Choose whichever method makes the most sense to you and follow through, so you can begin investing in precious metals to capitalize on this opportunity right away.
If you are ready to get started, please proceed by filling out the contact form on this page. You will receive a FREE investor’s kit and one of the qualified representatives will help you get underway.