Gold is one of the most popular investments today. However, even with stocks and real estate doing well, many people are still investing in gold instead. What’s more, there are now specific IRA options for holding physical gold or other precious metals like silver. Here are some facts explained by Rare Metal Blog; you should know about the benefits of using a Gold & Silver IRA to invest in physical gold.
Three fun facts:
1. You can also use your IRA to invest in silver
The United States Bullion Depository holds the world’s largest stockpile of physical gold. But did you know that it also stores silver? The depository is located in Fort Knox, Kentucky. The U.S government had used it since 1937 when President Roosevelt ordered all American citizens to turn in their gold for paper money.
Gold IRA investments are not the only way to invest in precious physical metals; you can also use a Silver & Gold IRA or a Precious Metals IRA. There is no limit on what percentage of your retirement account must be devoted to silver and gold investments.
2. You can contribute to your Gold IRA even if you are under the age of 70.
You can use a traditional or Roth IRA to hold physical gold investments, but there is one difference between the two options: taxes. With a traditional IRA, contributions must stop at age 70, but this does not apply when using an IRA to invest in gold.
When you turn 70, withdrawals from your IRA accounts are mandatory, and the amount of money is based on a specific formula specified by the IRS. This means that if you have an investment account with a large balance inside it, at age 70, there will be a significant tax bill that could potentially affect other areas of your finances, such as your social security income.
3. You can set up a Gold & Silver IRA with as little as $5000
There are no income limits for investing in gold and silver through an IRA. The only requirement is that you have earned income from your job or investments. There is also no minimum age requirement for opening a retirement account which means that if you want to invest in gold and silver through an IRA, you can do so even if you are only 18 years old.
In conclusion, there are many reasons why investing in gold and silver through an IRA is a wise idea. Gold has been recognized as a valuable investment since ancient times, and more recently, it has proved to be one of the best hedges against inflation.