How much does it cost to start a gold ira? This is one of the most commonly asked questions by people who are thinking about opening gold IRAs. I shall address this question at length in today’s post, so if you are here to find out how much it will take to open your new precious metal IRA, read on till the end to find out more. 

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Introduction

Deciding to save and invest for your retirement can come with a lot of questions. Two of the most commonly asked questions that most investors raise are:

• How much will it cost me?
• How much will be the returns? 

While it is hard to address the type of returns that one should expect, owing to the ever-changing global economic landscape, we can easily identify the costs associated with opening a gold IRA. 

It is important to identify and quantify the fees and charges it will take for you to open and maintain your gold IRA since they can easily eat into your capital gains, and even lead to you having zero or negative returns at the end of the investment period. 

Some of the most common fees that you should expect to pay when opening your gold IRA with any type of Gold IRA service provider include:

• Account setup and admin fees 
• Precious metal product markups and commissions 
• Yearly maintenance fees 
• Storage fees

Gold IRA Setup and Admin Fees

Whereas you are not mandated by the IRS or the government to pay rollover or transfer fees as you move your funds from your existing retirement plan to your precious metal IRA, this does not mean that there are no account application fees to be expected. 

You will often find that gold IRA custodians and administrators of gold IRAs will charge a certain fee that they refer to as the processing fee, in order to create the account. Generally, the administrators will charge different amounts based on the account features. In most cases, however, you should expect to part with around $50 in setup and admin fees. 

Gold markups and commissions

There are a couple of commissions that are involved during the buying of assets using gold IRAs. You have to be ready to part with the transaction fees to cater for the purchase or sale of precious metal products through their account. These fees are often assessed on a per-transaction basis.

The more the products you purchase and sell, the higher the fees you can expect to pay. There’s no avoiding transaction fees regardless of the type of administrator you choose. The administrator or custodian is merely passing on the costs from the bullion or coin dealers, as they do the transaction on your behalf. Every time the account custodian completes the transaction on your behalf, they charge a small commission, usually about $40 per transaction. 

The commissions should not be confused with markup fees over the precious metal spot prices that the precious metal dealers also often assess. In addition to the value of the precious metal products that you purchase, you will be expected to pay a premium. The premium is usually on top of the spot price of the gold, silver, platinum, or palladium bars, and may vary depending on factors such as:

• The product in question
• Current demand for the product
• The precious metal dealer’s financial objectives.

Gold IRA Rules and Regulations | Put Gold in Your IRA 2022

Annual account maintenance fees

Your gold IRA custodian cannot merely rely on the account setup fee that is payable only once, to oversee your gold IRA account activities. They will also request you to pay the yearly account maintenance fees, which are meant to cover:

• The administration of the account
• Processing of financial statements
• Record keeping 
• Reporting to the IRS 

These fees vary widely, but the typical range is $75 to several hundred dollars per year. It is a good idea to check and confirm the annual account maintenance fees. Your gold IRA custodian should clearly spell out these fees and should tell you about the means of communication they will use in case there are any changes. 

Some admins and custodians offer discounted annual maintenance fees in the first year. Others discount the fees based on how big the account size is. Beware of the custodians who use sliding scale fees models to arrive at the annual fees, since these may lead to you having to pay more money for investing in larger quantities of gold and silver.

You may not even realize it, but the fees charged based on this model may end up becoming exorbitant. If anything, you should stick to a company that has reasonable flat fees, so that you don’t have to worry about giving up a lot of your funds to meet such expenses. 

Storage fees

The IRS-approved depository will also request that you pay the annual storage fees to ensure that your precious metals are safely stored. Remember that all your gold, silver, platinum, and palladium products invested through a gold IRA must be stored in an IRS-approved depository that has off-site vaults, and that is separate from your account custodian. 

Precious metal depositories usually charge the annual storage fees, and all that your account custodian does is pass them to you. Note that the fees you end up paying are dependent on the depository you select. In most cases, these fees will range from 0.5% to 1% of the value of your account holdings annually, an amount that is based entirely upon the dollar value of the type of asset you own.

Some depositories may also have differing fee schedules, depending on the type of storage that you choose. There are two types of storage, which are:

• Aggregated storage in the general vault
• Individualized segregated storage

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Frequently asked questions on “The cost to start a gold IRA?”

1. How much, therefore, does it cost to start a gold IRA?

The fees required to start a gold IRA vary. There is no fixed amount of money that every investor can expect to pay to establish and maintain this unique investment account. The differences in the fees arises from:

• The different account setup fees ( from one custodian to the next one)
• Varying account maintenance fees 
• Different markups and commissions
• The differing storage fees 
• Unique customer needs 

2. Which other fees should I  expect to pay?

There are also some miscellaneous fees that you must expect, such as wire transfer fees. Most IRA custodians will assess funds that you need to wire to them or to the precious metal dealers. Wire transfer fees may cost you about $25 for any outbound transaction that you initiate. You should request your gold IRA custodian to also disclose all miscellaneous fees as well during the account opening, to avoid getting hit with extra fees that were not previously brought up. 

3. What about taxes?

For starters, you may end up paying the taxes during the account opening process, or at the end of the investment horizon. This is all dependent on the IRA structure you choose, i.e. a traditional Gold IRA or a Roth Gold IRA. With a:

• Traditional gold IRA – you pay the taxes at the end of the investment period
• Roth Gold IRA- the fees are paid at the start of the investment period. 

4. How long does it take to open a Gold IRA? 

The gold IRA application process is quite short with most companies, and you can actually complete it in about 10 to 15 minutes. The account processing is also fast and can take about one business day for it to be completed. 

From there, everything else depends on how fast you will fund your account. As long as you have a fast and reliable gold IRA custodian, the transfers and rollovers should take about 10 days to complete. Note that funding the account through a mailed physical check may take longer. 

Also note that the timelines are bound to vary from one company to the next, so you should not take it up with your custodian if they take longer than you expect even when the delay is justifiable, or as a result of the way they have structured their account opening process. 

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That will be all for today’s post on “how much does it cost to start a gold IRA?” Did you find it informative? Do you have more questions about this topic? Kindly let me know by dropping me a comment in the section below, and I will respond to you as soon as I can. 

I wish you well, 

Eric, Investor and Team Member at Gold Retired!

What is the best gold coin to buy for investment? What are its properties? Join me in yet another interesting post in which I will be taking you through a very important topic in the field of precious metal investments. Read on to learn more about it. 

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Introduction

In the very vast gold bullion marketplace, establishing which coin is the best for you to purchase for investment can be quite daunting. There are many coins you can buy, each with their unique properties, and that you stand to benefit from in different ways. This implies that to decide which coin is best for you, you ought to first identify a couple of coins, study their properties, then pick the one that will align with your investment plan. 

In today’s post, I have narrowed down the list of the best gold coins to just a few popular ones that are worth looking into. You may want to do your due diligence before getting started, but this list will get you started in the right direction. More about the coins in the next section:

The American Gold Eagle coin (One Ounce $50 coin) 

This coin was first issued in 1986 and has since then been one of the top choices for gold investors. The two main reasons behind its popularity are:

• Its high purity results from its gold content 
• Relatively low prices over the spot price of gold. 

Currently, there are 4 different sizes of coins in the American Gold Eagle series, which include the half-ounce, quarter-ounce, tenth-ounce, and the one-ounce coin. Of the four, this coin has been perceived to offer the best value for gold investors, by weight. 

A 1-ounce gold coin in the series has 1 troy ounce of gold that is 0.9167-fine. It is also usually denominated with a face value of $50. This means that, like all gold coins that are offered by the U.S Mint, the American Gold Eagle Coin is an official legal tender, though this does not imply that you get to spend this gold coin based on its nominal face value. 

If you were to ask around, you’d find out that most bullion gold coin investors have this coin in their investment portfolio. Owing to this remarkable popularity in the gold investment industry, this coin is highly liquid and offers one of the best returns on investment. 

***Best Gold Coin Dealers | Top-3 Options To Buy Or Sell To

The Canadian Maple Leaf, 1-ounce 

Produced by the Royal Canadian Mint (RCM), this coin is one of the most popular ones you can find outside of the U.S. borders. RCM first issued this coin in 1979, and has been manufacturing Gold Maple Leaf versions in different denominations and sizes. Still, the one-ounce version is viewed as one of the best performers in the series, in terms of how viable they are, as well as their liquidity. Like the 1-ounce American Gold Eagle coin, this coin has a legal tender value of $50. 

You can find the one-ounce Canadian Maple Leaf Coins in many portfolios today. They are traded at premiums that are close to the spot price of gold, which could mainly be a result of the fact that they are one of the few gold coins that are made from 99.99% pure gold. 

The fact that RCM can manufacture the “four nines” fine gold is a testament to its excellence and expertise in the refining process. 

Whereas the Canadian Maple Leaf Gold Coin is manufactured in Canada, there are many investors outside of this country who purchase it and use it for the purpose of investment. There are several reasons for this, which include:

• The coin is guaranteed by the Canadian Government
• It is one of the most beautiful gold coins, with its unique design that incorporates the eponymous Canadian Maple Leaf. 
• Diversifying one’s gold investment portfolio with international bullion coins comes with its unique benefits, which include an increase in the appeal of one’s precious metal holdings, as well as an increase in the overall liquidity of one’s portfolio. 

Also read: Best Online Silver Coin Dealers (& How To Identify Them?

British Sovereigns

There are not many coins in the gold investment industry that match up to the popularity of the British Sovereigns. They were first struck by the Royal Mint back in 1817, and have been a favorite amongst the investors who prefer gold coins. Gold British Sovereign coins have a face value of one sterling pound and were initially issued as circulating coins. With time, however, they have become dominantly used for trade and bullion investment purposes.

The obverse and reverse of this coin feature impressive designs, as described below:

• Obverse – Queen Elizabeth II
• Reverse – Saint George and the dragon ( this is a well-known design by Benedetto Pistrucci).

In more recent times, the Royal Mint has produced the gold British Sovereigns mainly for use by bullion investors. It is common to find most investors who purchase this coin also purchasing the modern Gold Britannia coins, to add to their precious metal investment portfolio. 

In addition to being a coin that is loved by bullion investors, the gold British Sovereign has also found its place in the hearts of coin collectors. There is no denying that this coin’s appeal is worth the attention of coin collectors, moreso those who are out to create date sets and type sets of such coins. Another factor that contributes to this coin being quite popular is the fact that even its vintage versions also trade for a price that is right above the melt value. This in itself makes them quite affordable to many investors and collectors. 

Austrian Philharmonic Gold Coin 

This coin may easily be the top-most traded coin of its kind across continental Europe. Issued by the Austrian Mint, the gold versions come in different sizes, which include the 1/10 ounce coin and the 1-ounce coin. Some investors also refer to this coin as the Vienna Gold Philharmonic, a name that has stuck very since 1989, when it quickly spread across the gold market. 

The design of this coin borrows heavily from the history of musical arts performed in Vienna. On the obverse of the coin is an array of orchestral instruments, whereas on the reverse of the coin is a depiction of the grand pipe organ found at the music hall in which Vienna’s Philharmonic Orchestra performs regularly. This design is also found on the silver Austrian Philharmonic, since 2008. Investors who purchase the gold Austrian Philharmonic also purchase the silver version as well, just to complement their collection with an equally beneficial precious metal coin. 

Frequently Asked Questions on “What is the best gold coin to buy for investment?”

1. Where can I buy gold coins for investment? 

You can purchase gold coins from reliable and internationally recognized precious metal dealers, through their online e-commerce platforms, or you can visit a local precious metal coin dealer. The first thing you may want to do before going through with any purchase is to check what other customers have to say about the dealer. If you come across a dealer who has negative reviews, then you should avoid making a purchase from them. 

2. How much do gold coins cost?

The price of gold coins varies from one dealer to the next one. It is common to find the same coin selling at different prices, hence the need to always shop around. Prudent gold investors always compare different offerings before making their decision on how much to spend on particular gold coins. 

3. Can I buy gold coins for retirement investment?

Yes. You can purchase gold coins through a gold IRA, which is a special type of individual retirement account that allows you to hold alternative assets (mainly IRA-approved precious metals). There are other ways to use gold coins for retirement investment, but gold IRAs are the most common option out there. Investors prefer using gold IRAs since they are tax-advantaged accounts. 

4. Are bullion coins better than collector coins?

Depends on what you intend to use the coins for. Different coins in their coin categories usually offer unique benefits to their owners. You, therefore, need to establish what your financial objectives for investing in gold coins are, to have a clear picture of the path that you should follow. If, say, your financial objective is to diversify your retirement investment portfolio by opening a gold IRA, then the only type of coins you are allowed to use are bullion coins. 

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That will be all for today’s post on what the best gold coin to buy for investment is. Hopefully, you will identify the coin that’s best for you, based on the features we have discovered in today’s post. If possible, you can consider doing within-class asset diversification, by purchasing a few coins of the above-listed types of gold coins. If you still have more questions with regards to today’s topic, drop them in the comments section and I will get back to you ASAP!

I wish you well, 

Eric, Investor and Team Member at Gold Retired!

What is a good investment for retirement? In today’s post, I shall be answering this question, to help anyone who may be thinking of creating a portfolio of retirement assets that will support their lifestyle. I know you are here today because you are also looking for answers as well, so read on till the end of this post to find out more. 

P.S.

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Introduction

According to reports released by the Centers for Disease Control, the life expectancy for those who retire at 65 in the U.S population is 18.8 years. This means that anyone who is about to retire should prepare to fund about 2 decades of their daily expenses.

To ensure that you have a financially secure retirement, you ought to plan early in life, or right now, if you have not done so already. You need to ensure that your portfolio is balanced, or diversified so that it can withstand market shakeups, as you wait for the accumulation of capital gains from your assets. 

To do this, you need to pick good investments for retirement. (Also read: Best Investment For Retirement Income (Plus Suggestions)

In the retirement marketplace, you can access most of the investments through the retirement plans offered by different service providers, and as you will find out, the first and major step will lie in deciding on the type of plan you need. Having the right retirement plan will help you access the most suitable assets for investments as well as the right investment structure, as you shall see in the next section. 

Retirement Planning (Gold IRA) | What You Need To Know!

Defined Contribution Plans 

Defined Contribution Plans, or DCs, as they are popularly abbreviated, have been around since the early 1980s, and are a commonality in the present-day retirement marketplace. About 86% of Fortune 500 companies offered only DC plans such as 401(k)s, as opposed to traditional pension schemes in 2019. Other types of DC plans include 403(b) and 457(b). 

• 401(k) – common amongst small, medium, and big employers alike. ( Read more about: Is an IRA Better Than a 401(k)? | The 2022 Detailed Guide)
• 403(b) – offered to employees of public schools as well as certain tax-exempt organizations
• 457(b) – mainly offered to state and local government employees. 

The contribution limit for each of the plans above is $20,500 for those below 50 years or $27,000 for those above 50 years. 

Most DC plans are structured as Roth versions, in which the employees get to contribute after-tax dollars so that they can take their withdrawals tax-free upon retiring.

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Individual Retirement Plans (IRA Plans)

An IRA is a retirement saving and investment vehicle established by the U.S. government to enable its workers to save for their retirement years. The contribution limit for IRA plans is $6000 for those aged below 50 and $7000 for those aged above 50. 

 There are many different types of IRAs, including the ones discussed below:

• Traditional IRA

This is a tax-advantaged IRA that allows you to make contributions using pre-tax dollars. You will only get taxed when taking withdrawals during retirement. 

• Roth IRA

With this type of IRA, individuals contribute to their accounts using post-tax dollars, which allows them to take tax-free withdrawals during their retirement years. 

***What Should I do After Maxing Out my Roth IRA? Top Options?

• Spousal IRA

This type of IRA allows the unemployed spouse of a worker who has an earned income to fund their own retirement plan. The working spouse’s taxable income should, however, be more than the contributions they make to any of the IRAs. A spousal IRA can either take a traditional or Roth structure. 

• SEP IRA

Such IRAs are set up like traditional IRAs, with the only difference being that they are usually for small businesses and their employees. Only the employer is allowed to contribute to this plan, with the contributions made going to each of the employees, as opposed to a trust fund. Self-employed individuals can also create SEP IRAs. The contribution limits for SEP-IRAs are 25% of compensation, or $61,000, whichever amount is less. 

• SIMPLE IRA

With 401(k) plans, employers are required to pass non-discrimination tests every year, to see to it that their highly compensated employees are not contributing too much to their plans, in relation to the rank-and-file. SIMPLE IRAs are designed to bypass all these requirements since all employees are entitled to similar benefits. The employer can choose to:

1. Contribute a 3% match 
2. Make a 2% non-elective contribution, regardless of whether the employee saves nothing in their SIMPLE IRA.

===>What Are The Alternatives to Backdoors Roth IRAs Today?

Self-Directed Individual Retirement Account  

A self-directed IRA (SDIRA) is a unique type of IRA that allows an investor to hold assets that are otherwise not allowed in the IRA plans discussed above. SDIRAs present you with more freedom to decide on the type of assets you want to hold, which can be such a great opportunity for you to maximize your earning potential. 

Most SDIRAs are named after the type of asset that is mainly supported by the self-directed IRA custodian. The name of the SDIRA should, however, not fool you, since most SDIRAs (unless in special cases), allow you to add a wide range of all IRA-approved assets for this type of plan.

***Best Self-directed IRA Custodians | Ranked by Main Features

If you come across a gold IRA, you should know that the main asset supported by the IRA custodian is gold, but you can also use this account to invest in other assets such as silver, platinum, and palladium. With a Real Estate IRA, the IRA custodian mainly supports real-estate-based investments, but you may most likely be allowed to hold other assets in your account. 

The assets you can hold in an SDIRA include:

• Precious metals 
• Cryptocurrencies 
• Real-estate 
• Private Equity 
• Private lending 
• Limited Liability Companies
• Arcades
• Bowling alleys
• Life settlements 
• Retirement homes 
• Show horses 
• Vineyards 
• Renewable energy e.g. solar energy, biofuel, water, and wind energy. 
• Agriculture
• Mineral rights 

N.B.: 

1. You are not allowed to add life Insurance products and collectibles to your self-directed IRA
2. Self-directed IRA custodians do not offer investment advice. They are only required to oversee your activities, without interfering with any decisions you make, provided that they are allowed under the laws stipulated by the IRS.

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Frequently Asked Questions on “what is a good investment for retirement”

1. What is the best SDIRA custodian? 

If you are interested in opening a self-directed IRA, then there are many SDIRA custodian options for you. You can check out our list of recommended custodians, or you can do an online search to find out which companies are at the top of the industry. Some of the things that you should check about SDIRA custodians before deciding on the ones to settle on include:

• Fees 
• Honesty 
• Customer experience/ customer care availability
• Consumer trust ratings 

If you come across several negative ratings and comments about a specific SDIRA custodian, then you should stay away from them. 

What Can I Invest in With a Self-directed IRA? What’s Legal?

2. Are there any other viable investments that are good for retirement?

Yes. If the options presented above are not good enough for you, based on your financial objectives, then you can try out the options listed below:

• Thrift Savings Plan (TSP)
• Guaranteed Income Annuities 
• Traditional Pensions 
• Solo 401(K) plans
• Non-qualified deferred compensation plans  
• Cash-balance plans 
• Cash-value life insurance plan

3. Which retirement plan is best for you?

In most cases, you will mainly have access to an employer retirement plan, and it may be the best you have. You may, however, supplement such a plan with an IRA, by rolling over some of your retirement funds in the employer plan to your IRA.

If you already know that most of your retirement savings held through the employer-sponsored plan are tied to paper assets, you might want to consider opening a self-directed IRA instead of a regular IRA, so that you can get the opportunity to diversify your retirement investment portfolio. 

4. Can I have more than one retirement plan?

Yes, you can. There are, however, some complexities that are involved with doing this, since you are not allowed to exceed the annual contribution limits.

If you intend to open another retirement plan to supplement your existing one, then you should talk to your financial advisor, accountant, or IRA custodian to establish how much you ought to contribute to each plan, and in what order. Doing this will help you avoid any unnecessary conflict with the IRS.

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Thank you for reading: what is a good investment for retirement? I hope that you have enjoyed it and that you are now better informed on how to make better decisions. If you have any questions or thoughts to share, drop them in the comments section, and I will get back to you ASAP!

I wish you well, 

Eric, Investor and Team Member at Gold Retired!