Precious Metals
We’ve already gone over why investing in a gold ETF isn’t a great idea. But if you want to invest in gold and realize that an ETF has drawbacks, how do you invest in gold? Investing in gold through a gold IRA is the clear choice, as it offers numerous advantages over ETFs.
The first advantage gold IRAs have is their tax-advantaged status. While it’s possible to invest in a gold ETF through an IRA or 401(k), many 401(k) plans don’t offer that ability to invest in gold ETFs. That means that you’ll have to invest in a gold ETF through a normal brokerage account. You’ll use post-tax dollars to invest and then have to pay taxes on distributions and capital gains.
By contrast, a gold IRA allows you to use pre-tax dollars, either contributions from your salary or existing tax-advantaged assets such as from a 401(k), 403(b), or TSP account. Then your gains accumulate tax-free and you don’t pay taxes until you take a distribution, just like with a traditional IRA. That tax-free growth means that a gold IRA can offer significantly more asset growth than a gold ETF.
Unlike a gold ETF, in which you’re only buying shares in a fund that owns gold, with a gold IRA you actually own gold coins and bars. You as the IRA owner decide which gold coins or bars you buy so that your investment can be personalized to suit your needs.
Your physical gold investment is held with a custodian who keeps the gold safe so that you don’t have to worry. And when you decide to take a distribution, you can take it either in cash or in gold.
Because your gold is held by a custodian, you don’t have to worry that your gold is loaned out to third parties. It’s held in a secure vault, not commingled with anyone else’s gold, and is available for you to take delivery of when you decide to take a distribution.
For all these reasons and many more, gold IRAs are a far better choice than investing in a gold ETF. Gold ETFs are paper gold, a derivative of actual gold. Between the custodial issues, share inflation, and fees, gold ETFs have numerous drawbacks. By investing in actual physical gold through a gold IRA, you can overcome all those disadvantages and put gold to work safeguarding your vital retirement savings.
Free Precious Metals Guide
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Free Precious Metals Guide
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DISCLAIMER: This site is general in nature and not tailored to the specific goals of any individual. All investments carry risk. Some of those risks associated with precious metals include the following: prices may rise and fall, which means the value of your metals may go up or down over time and you may sell for more or less than you paid. Past performance does not guarantee future results. Goldco cannot guarantee, assure, or promise future market movement, prices, or profits. Even though Goldco and its representatives are precious metals specialists, we are not licensed financial advisors and do not give financial advice. Additionally, Goldco cannot provide tax or legal advice and will not advise as to the tax or legal consequences of purchasing or selling precious metals or opening a Precious Metals IRA. Individuals should consult with their investment, legal or tax professionals for such services.
