Investing in gold for IRA accounts will protect your retirement from inflation. Investing in gold for IRA accounts can be done in two ways. It is simple to do and most IRA’s allow both physical and paper (gold stocks) gold in the IRA.
The two main ways for investing in gold in your IRA are paper (stocks and ETFs) and physical gold (coins and bullion). Paper is the traditional way to invest in gold in an IRA. You can buy any gold stock that you wish in your IRA. Depending on which brokerage house you are with, you can trade your stocks through the internet. The greatest advantage that you have with trading stocks in an IRA is that they are not taxed until you start to withdraw the money. Sixty-two and ½ is the earliest that you can start to withdraw the money and at that time the money is added to your income and taxed at the rate for which tax bracket you are currently in. For most people, their income is significantly reduced when they retire, so the tax rate is not high.
IRA’s allow you to move in and out of your gold stocks without having to cough up the capital gains tax. This is a HUGE advantage in trading gold stocks. Since the beginning of the financial crisis in the 4th quarter of 2009 gold has been one of the few sectors that has recorded gains. As with any other sector, gold does not go straight up, but rather stair steps as it goes up or down. Through out this financial crisis gold has tested the $880 per ounce level and has settled into roughly a $920 to $960 trading range. As it keeps repeating moves in this trading range, there have been multiple opportunities to trim profits off of stocks as they go toward the upper levels of the trading range. If you are investing in gold in your IRA you do not have to give any thought to the tax consequences.
Exchange Traded Funds and regular gold funds are another way of investing in gold in your IRA. Because the moves will not be as great as with individual stocks you will not be trading as often and can leave them if you desire long term exposure to gold.
Physical gold is another way of investing in gold in your IRA. With physical gold there are fees for storage and the gold gets no returns until you sell. I do not recommend this method, I prefer to hold the gold in my own possession. If you have the cash and want to hold some in your IRA I would prefer that you hold the bulk of it in your possession and put maybe 10% of your IRA into physical gold. There are many ways for investing in gold in your IRA and within the next six months investors will see profits from all of them.