Gold IRA Rollover Review
In the current volatile economic landscape, more and more people are searching for different investment instruments, just like a gold IRA rollover to protect their retirement savings.
In the last few years, a precious metals backed IRA has become increasingly popular. The reason behind this is the fact that historically gold has moved in the opposite direction of mutual funds, stocks and bonds. The technical term is that gold is negatively correlated to stocks.
Today, gold still plays a critical role in the marketplace and is the most appealing precious metal. Gold is still a mark of wealth and prosperity because of its rarity and perceived value. Since 2001, the price of gold has risen more than 4 times in relation the US dollar, reaching a high of $1,913.50 in 2011.
Gold will continue hitting record highs in price for many years to come in case of the following:
- Failure of Currencies
- Failure of the Stock Market
- Higher Unemployment & Foreclosure Rates
- Continued Rising of Inflation & National Debt
Due to the rejuvenated momentum of gold, it is still viewed as a solid investment strategy, when paper currency has proven to be anything but stable. Gold has a reputation for offering protection against devaluation of paper currency and various other negative effects of unsound policies and government overspending. Gold IRA rollover is gaining in popularity among investors for providing protection of the retirement accounts or those that would like a more diversified and safe portfolio.
The difference between a transfer and a rollover
The IRS has a very clear distinction between a transfer and a rollover despite many people thinking that any movement of funds is a rollover. With a rollover, the funds first move to you and you then deposit into the other account. When you do a transfer the funds move from one custodian to the other without you seeing the money.
Gold IRA Rollover – The Process
Rolling over your existing account can be a daunting task, but when done correctly, it is cost and tax effective. If you decide to work with Regal Assets (the company we can give our stamp of approval), here is the process:
- First, visit their website here – Opening a Gold IRA acount or give them a call 1-844-334-0018
- Fill out the form
- Let the experts help you along the way
- After receiving your signed paperwork your IRA account will be opened in as little as 24 business hours
It’s important to do your due diligence and research the top rated companies for your IRA, before making your final decision – you can read more in our review of the best companies and learn more about the most trusted companies.
After you’ve reviewed the companies, it’s important to ensure that they are reliable when protecting your retirement. Our team picked Regal Assets because of their customer service, storage fees, reliability, transparency, flawless run-rate for years and their ability to protect retirement assets.
Not conviced? Click here to visit Regal Assets website or give them a call at 1-844-334-0018 and let them earn your trust.
Regal Assets pride themselves on delivering on their promises, making sure their customers are satisfied with their end-product and operating a first-class business. They offer a 7-day delivery guarantee. When it comes to shipping gold this is extremely rare.
If you are looking for additional justification for investing in gold, look no further than the stock market. When considering the security that a gold IRA rollover provides, consider the recent trend of the New York Stock Exchange. In October 2007, the Dow Jones Industrial Average, reached its peak and closed at 14,164. Quickly after, the Great Recession of 2008-2009 followed causing it to drop to 11,000 in April 2008. The Dow Jones continued plummeting finally reaching a low of 7,552 in November 2008.
This was obviously horrifyingly painful for all investors whose retirement funds depended on those stocks. Shareholders started rushing to exit the market. Many stockholders experienced total loss in the value of their investment. In contrast, the decline of the Dow never affected investors that opted for gold IRA investment.
Experts are still predicting another crash in the offing thus making a gold IRA plan increasingly attractive. Continued warnings regarding the recent bullish markets point towards an end in the offing and that investors should start seeking other vehicles, including precious metals including 401k and gold IRA rollovers. This is especially relevant to the people near retirement who would be devastated by a large drop in the value of their portfolio.
401k to Gold IRA Rollover
By relocating your 401k or any other retirement instrument to a precious metal investment like gold, you get to protect your portfolio’s value against any devastating drops. The price of gold is know to have a negative correlation to the stock market. So when the markets go down, precious metals, especially gold have a tendency to rise in value. It makes sense to invest in gold in these times since it involves minimal risk and is largely unaffected by such factors.
In 2011, the price of gold rose 32.8, which was preceded by 2-digit increases in all previous years starting 2008. The increase is primarily a consequence of investor activity in the precious metal market in form of gold IRAs along with other vehicles that retain value regardless of the general currency supply. The sustained investment of this type eventually drove up the price of gold by over 50 percent in September of 2011.
Gold exposes its real significance as a protection against devaluation in case of high inflation offering returns of over 130 percent. Compare this to the 12-percent return, which is the average stock market gain. In times of inflation over the last decade, gold more than doubled in terms of value.
Gold IRA Rollover Rules
Investing in gold IRAs is similar to other individual retirement account vehicles. The key difference lying in the actual physical gold held by the account rather than paper currency. You need to transfer your current 401k or IRA via an Internal Revenue Service approved rollover procedure. It is tax-free. Your gold will be stored in a secure location until you choose to act upon it by either selling it for cash or having it shipped to you.
Your gold IRA retirement funds will be in custody of the company you choose and it will offer you different asset plans to choose from. All you need to do is fill out the required paperwork to open your personal IRA with your custodian of choice.
With a rollover you have 60 days from the date that you receive the funds to transfer the money to a custodian or a gold IRA company. The funds become a taxable withdrawal if you don’t complete the transfer in the 60 day period and if you are aged under 59 1/2 a 10% early withdrawal penalty is applicable.
Standard IRA Vs Roth IRA Gold Rollover
You can choose either a Roth IRA or standard IRA. In the standard IRA, your funds are invested in a tax-free manner until you choose to withdraw them. In the Roth IRA, rollover is typically applied once taxes have been assessed and can then be withdrawn free of tax. In either option, you must have complete the transfer of funds within 60 calendar days of the funds being removed from the original IRA to avoid the large fines or fees the IRS usually imposes.
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