Hello, my name is Rhonda. If you have financial goals, this blog can help you achieve them. A few years ago, I realized that I didn't have a good plan for my future and I wondered if my financial needs would be met after I retired from my job. I immediately started planning for my future by speaking with a financial advisor and I learned a wealth of information at our meetings. By following the recommendations of my advisor and by learning everything I could about finances and money, I now feel very secure about my future. If you need financial help for retirement planning, college savings or even for an emergency fund, you can get sound advice by reading my blog. I believe that by following a few basic strategies, everyone can meet their goals and be financially secure.
If you want to diversify your retirement account with physical gold, you'll quickly find that traditional IRA accounts don't provide this service. In order to add physical precious metals to your retirement portfolio, you'll need to open a self-directed IRA and roll over your existing IRA into your new one. You'll also need to choose a custodian to manage your new self-directed IRA. There are a number of gold IRA custodians in the market, so it can be difficult to figure out which one is the right fit for you. When choosing the custodian for your self-directed IRA, here are three factors that you need to look for in order to find the best choice.
1. Offers Multiple Methods of Investment in Addition to Gold
If you're rolling over your entire 401(k) into a self-directed IRA, you'll definitely want to have the ability to invest in more than just precious metals. Custodians for self-directed IRAs typically offer more investment options than the traditional IRA custodians that employers use. For example, you can choose to invest in real estate or fossil fuels in addition to the typical stocks and bonds. Make sure that the custodian you choose offers a wide range of services so that you're able to diversify and strengthen your retirement portfolio.
2. Charges Reasonable Fees and Doesn't Hide Them
Choose a custodian that offers a reasonable fee schedule for the services they provide. You can generally expect fees to correlate to the level of service you receive from the custodian. Instant transfers, fast sales, and quick response times to any questions you may have will typically result in higher fees. Custodians that let you choose your depository instead of mandating that you use a certain one will also typically charge higher fees. Don't just select the custodian with the lowest fees—choose one that provides the services you need with fees that fit your budget.
You also need to ensure that you can fully understand the fee schedule set by the custodian of your self-directed IRA. You may be charged fees to create an account, periodic holding fees, and fees to cash out and sell your precious metals. Read contracts carefully—don't let hidden fees surprise you!
3. Aids You in the Process of Opening Your Self-Directed IRA
Rolling over your 401(k) into a gold IRA can be a complicated process, so it's a good idea to choose a custodian that will help you handle a gold IRA rollover correctly. If you simply withdraw money from your IRA in order to deposit it into a new self-directed IRA that you create, it has to be done in a certain way in order to avoid taxation. A good custodian will contact the manager of your current IRA for you and negotiate the process themselves in order to ensure that your retirement funds remain sheltered from taxation. They will also help you choose a reputable dealer for your gold and a safe depository in which to store it.
When you want to add gold to your retirement portfolio, call a number of gold IRA custodians and ask about their services. Get a copy of their fee schedules and inquire about how they will help you roll over your existing IRA. It's also a good idea to consult with your financial planner to see if he or she has any recommendations. No matter the reason you wish to diversify your portfolio, you'll need a custodian—keeping the above three factors in mind will aid you in choosing the right one to safeguard your retirement account.