If you have been hearing a lot about traditional and gold Individual Retirement Accounts lately, then you must have started wondering what the difference between these two is and whether you can do a transfer from the traditional one to the gold one. On top of that, you are probably also wondering whether such a transfer would be a good move or not and how it can actually be done. Well, those are all some very important questions that you have right there and I’m going to try and answer them for you.
Let’s begin by giving you a definition of a gold IRA: https://www.investopedia.com/terms/g/gold-ira.asp
Here is what you need to know about the difference between these two types of accounts. Basically, the traditional one allows you to invest in assets such as stocks and bonds, while the gold account allows you to spread your wings and start holding precious metals, including gold, silver and some rare coins. Hence the name gold IRA. Now that you know this difference, let’s assume that you already have the traditional account and that you are drawn to the idea of owning those precious metals.
Can You Do It?
The first question you will have if you find yourself in a situation like that is this. Can you actually do that? Can you transfer your traditional IRA to a gold one and thus start investing in silver, gold and similar precious metals. The simplest answer is yes. You can absolutely do this, so don’t listen to anyone that might tell you otherwise.
In fact, people have been doing this for quite some time now, so it is actually nothing unusual. I know that you might not have been aware of it up until now, but just because something is new to you, it does not mean that it is new to the entire world. The bottom line is that this is completely possible scenario and that you can easily do it if you decide that you want to own precious metals. Read more about the reasons why you should own those precious metals.
Why Would You Do It?
As hinted at above, you are probably trying to think of the reasons why owning precious metals would actually be a good idea for you. Well, that’s what we are here to find out right now. Or, better yet, that’s what you are here to find out, since I already know a few things about those reasons, as I have done my fair share of research. In any case, the point is that we are going to have a look at those reasons right now.
First things first, precious metals are rather valuable, as I am sure you already know. People have historically been drawn to these assets due to their, well, precious value. Things haven’t changed in modern times either and these assets continue to be popular among people, as well as extremely valuable and highly in demand. That is most certainly a great reason why you would want to invest in them.
Since I have mentioned history, it is worth emphasizing that, for example, gold is known for historically holding that value. In simple words, it hasn’t experienced any crashes and falls and it has, instead, always been highly appreciated. The same goes for some other precious metals, which means that they are a rather secure investment and that the idea of transferring your traditional IRA to a gold one is probably becoming more appealing to you due to this fact.
Well, let me give you another reason why you should do this and let me do it by saying only one word. Diversification. Okay, let me expand on that a little bit, just in case you cannot wrap your mind around what I am trying to say. Simply put, adding precious metals to your retirement account allows you to diversify that portfolio of yours and thus have your money spread across multiple different investments, which is a really smart move.
How To Do It?
Since the above reasons are probably enough for you, let us move on to the next significant question that you have. To put it simply, let us not explain how you can transfer traditional IRA to gold and thus start buying precious metals and adding them to your account. This process isn’t too complicated, but it does require you to take a few very important steps. Firstly, you will have to open up a self-directed Individual Retirement Account.
Secondly, you will have to choose the most perfect company that will be your custodian and something of a guide through this whole process. That is the trickiest part, as well as the most important one. So, I advise you to be patient and don’t make any decisions without getting enough information about the potential companies that you come across while searching for the right one.
After making that particular choice, you will have to do the actual transfer of funds. The best thing to do would be for you to get some advice from the experts that you have chosen in the previous step and work together with them to transfer your funds the correct way. When you have the right people on your side, all of this will become as easy as one-two-three, which is certainly something to look forward to.