Although it sounds like a crazy concept, moving your IRA into gold is simply a simple action for everyone trying to vary their retirement assets. Rolling over your standard or Roth IRA into a new IRA that holds gold and other precious metals is known as a IRA rollover to gold. Although it’s not something to leap into lightly, it’s a terrific approach to guard your assets from market volatility and inflation.

Let us first discuss the “why” underlying this. You want to combine your IRA with a little gold after years of building it. for what reason? For those seeking consistency, gold has traditionally been a go-to investment. Gold usually maintains its value, or sometimes increases in value, when markets go through a difficult period. Rolling over some of your IRA into gold will help you protect your retirement from the swings the stock market can bring. It’s like locking your more difficult to access retirement funds.

The process itself is not as difficult as it would seem now. First of all, you cannot simply go shopping for a lot of gold and dump it into your IRA. No, the IRS has particular guidelines on the kinds of gold that are qualified. You cannot use any old coin or bar on its alone Your new custodian will assist you in navigating the requirements for purity of the gold. First step: then look for a custodian focused in gold IRAs. These keepers will handle all the documentation and lead you through the whole process.

Once you have your custodian, they will assist in opening the new IRA account and managing the actual rollover from your current IRA. The nice thing is that, as long as the rollover is executed properly, you won’t pay taxes or penalties (you have roughly sixty days to finish the process once the money is taken out). Indeed, as long as you abide by their guidelines, the IRS permits this transaction to take place tax free. Remember, though; you have time to grasp the processes; you do not have to hurry. Errors sometimes cost a lot of money.

Your gold IRA can retain actual gold in the form of coins or bars as well as other precious metals like platinum or silver during the rollover. Your custodian will keep the gold in a safe, IRS-approved facility once the assets are transferred. That implies neither gold bars under your bed nor stored in the closet. Think twice if you are considering turning your IRA into a treasure vault of glittering coins. The IRS wants everything to be orderly and safe.

You should also be aware that unlike stocks or bonds, gold does not precisely provide dividends or interest. Thus, do not expect it to provide you a consistent flow of revenue. Still, what it can do is protect your riches and maybe raise in value with time. Though it’s not newsworthy, this type of patient and consistent investment is nevertheless strong like a rock.

Though it’s not for everyone, an IRA rollover into gold could be just what you need to protect your retirement funds. Knowing that some of your nest egg is linked to something real that has endured over time helps you to relax. And when the market performs as it should, gold may be exactly what keeps your retirement fund whole. You’ll be good to go just be sure you follow the policies, deal with the correct custodian, etc.