If you’re worried about the value of your IRA, you’re not alone. While investing consistently in your IRA is a good way to plan for retirement, the market is continually rocky, leaving you with little predictability when it comes to planning for retirement.
If losing a good proportion of your portfolio right before you retire worries you, consider adding gold IRA investments. Investing in gold helps you diversify your portfolio and reduce the risk of your portfolio experiencing major declines when you need it most.
But how do you set up a Gold IRA? Here are the simple steps.
First, decide how you’ll invest in gold. You can invest in ETFs that track precious metals like gold, palladium, and platinum, mining stocks, or physically own gold. Investing in stocks or ETFs, however, still puts you at risk of a market drop. If you choose to invest directly in gold, though, you must follow certain steps.
As is the case with any retirement portfolio, keep a close eye on the fees on your fold IRA. Custodians wear many hats in your portfolio. They not only help you purchase the commodities, but they also store, track, and insure them.
Finding the right custodian with affordable fees, yet that protects your investments well is important. Look for transparency in pricing, so you know from day one what you’re getting when you invest in gold.
If you already have an established IRA but want to add gold to your portfolio, you don’t have to close out your existing IRA.
You can have multiple IRA accounts. Adding gold IRA investments to your portfolio will help diversify your investments and reduce the risk of a serious loss. Since gold’s value usually increases when the stock market decreases, it’s a great way to offset a total loss.
Consider transferring some money from your existing IRA into your Gold IRA if you don’t have ‘extra’ money to open another portfolio.
The final step is to set up your regular contributions. Do this by spreading your money out between your standard IRA and your gold IRA. While your standard IRA may have you making many important decisions and making the trades yourself, the right custodian for your Gold IRA will do the work for you.
It’s important that you find a reputable custodian with extensive experience, low and transparent fees, provides full-service, and is properly insured and bonded. Adding gold to your retirement plan can be one of the best decisions you make and can help your money go even further than if you stuck to your traditional IRA alone.