WEBVTT 00:00:00.000 --> 00:00:02.100 All right, welcome back to the deep dive. Today 00:00:02.100 --> 00:00:04.440 we're diving into something that's been popping 00:00:04.440 --> 00:00:06.860 up more and more lately, especially when it comes 00:00:06.860 --> 00:00:09.400 to planning for your financial future. We're 00:00:09.400 --> 00:00:11.880 talking gold IRAs. Yeah, it seems like they're 00:00:11.880 --> 00:00:13.880 getting a lot of buzz. Definitely. So we went 00:00:13.880 --> 00:00:15.839 ahead and did some digging, and we're basing 00:00:15.839 --> 00:00:19.140 our deep dive today on the gold IRA guide, what 00:00:19.140 --> 00:00:21.320 it is and how it works. Hopefully by the end 00:00:21.320 --> 00:00:24.519 of this, we can cut through some of that financial 00:00:24.519 --> 00:00:27.079 jargon and give everyone a clearer picture. Absolutely. 00:00:27.320 --> 00:00:29.140 No need to get barred down in the technical. 00:00:29.689 --> 00:00:31.870 Exactly. So to kick things off, maybe you can 00:00:31.870 --> 00:00:34.950 give us the elevator pitch. What exactly is a 00:00:34.950 --> 00:00:38.429 gold IRA? Well, in a nutshell, a gold IRA is 00:00:38.429 --> 00:00:41.070 a self -directed retirement account. Now, that 00:00:41.070 --> 00:00:42.890 might sound a little intimidating, but really 00:00:42.890 --> 00:00:45.729 all it means is that you have more, well, more 00:00:45.729 --> 00:00:48.369 say in how your retirement investments are managed. 00:00:48.570 --> 00:00:51.030 So a bit more control than your typical 401k 00:00:51.030 --> 00:00:54.460 or traditional IRA. Right. The real twist with 00:00:54.460 --> 00:00:56.899 the gold IRA is that instead of just investing 00:00:56.899 --> 00:00:59.659 in stocks and bonds, you can actually hold physical 00:00:59.659 --> 00:01:02.240 precious metals. So like actual gold bars and 00:01:02.240 --> 00:01:06.060 coins. You got it. Gold, silver, platinum, palladium. 00:01:07.439 --> 00:01:09.799 You know, the real deal. Okay, that's interesting. 00:01:09.930 --> 00:01:11.450 I'm already starting to see how that could be 00:01:11.450 --> 00:01:13.890 appealing to some folks. Now, the guide mentions 00:01:13.890 --> 00:01:16.349 that there are different types of gold IRAs. 00:01:16.489 --> 00:01:18.549 Can you break those down for us? Sure. The main 00:01:18.549 --> 00:01:21.030 ones you'll come across are traditional gold 00:01:21.030 --> 00:01:24.870 IRAs, Roth gold IRAs, and then there are SEP 00:01:24.870 --> 00:01:28.700 gold IRAs. SEP. Yeah, SEP stands for Simplified 00:01:28.700 --> 00:01:32.200 Employee Pension. These are typically for self 00:01:32.200 --> 00:01:34.579 -employed people or small business owners. Each 00:01:34.579 --> 00:01:37.519 type has its own set of rules, and especially 00:01:37.519 --> 00:01:40.079 when it comes to taxes. I bet. Taxes always seem 00:01:40.079 --> 00:01:42.120 to complicate things, don't they? Yeah, they 00:01:42.120 --> 00:01:45.060 definitely can. But the good news is having different 00:01:45.060 --> 00:01:47.540 options means you can choose the one that best 00:01:47.540 --> 00:01:50.239 fits your situation, depending on your income, 00:01:50.459 --> 00:01:52.590 your tax bracket, all that. All right, so before 00:01:52.590 --> 00:01:54.409 we get too deep into the weeds with the different 00:01:54.409 --> 00:01:56.750 types, let's zoom out for a second. For someone 00:01:56.750 --> 00:01:58.790 who's just starting to learn about gold IRAs, 00:01:58.890 --> 00:02:01.250 what's the main draw? Why would you even consider 00:02:01.250 --> 00:02:03.689 putting physical gold into your retirement plan? 00:02:03.989 --> 00:02:06.489 I'd say the biggest reason people get interested 00:02:06.489 --> 00:02:10.449 in gold IRAs is diversification. You know the 00:02:10.449 --> 00:02:13.229 old saying, don't put all your eggs in one basket. 00:02:13.389 --> 00:02:16.870 Makes sense. Well, precious metals, particularly 00:02:16.870 --> 00:02:19.729 gold, they tend to move a bit differently than 00:02:19.729 --> 00:02:21.930 the stock market. So if the market takes a dip, 00:02:22.289 --> 00:02:24.669 your gold might not be affected as much. Exactly. 00:02:24.810 --> 00:02:28.250 It's about creating a bit of a safety net, especially 00:02:28.250 --> 00:02:30.490 if you're worried about economic uncertainty 00:02:30.490 --> 00:02:32.849 or inflation. That's something a lot of people 00:02:32.849 --> 00:02:35.129 are worried about these days for sure. Definitely. 00:02:35.250 --> 00:02:37.469 So it sounds like gold IRAs could be a good way 00:02:37.469 --> 00:02:40.550 to balance things out. Potentially, yeah. but 00:02:40.550 --> 00:02:42.050 there are definitely some things to consider, 00:02:42.289 --> 00:02:44.310 some nuances that are important to understand, 00:02:44.610 --> 00:02:46.349 and that's what we're gonna unpack today. All 00:02:46.349 --> 00:02:48.469 right, let's get into it then. So, first things 00:02:48.469 --> 00:02:52.169 first, how is a gold IRA different from a traditional 00:02:52.169 --> 00:02:54.370 IRA, the kind a lot of people are already familiar 00:02:54.370 --> 00:02:58.229 with? Well, the main difference is in the assets 00:02:58.229 --> 00:03:01.680 themselves. In a traditional IRA, you're typically 00:03:01.680 --> 00:03:04.000 holding what are called paper assets, things 00:03:04.000 --> 00:03:06.780 like stocks, bonds, mutual funds, that sort of 00:03:06.780 --> 00:03:08.919 thing. And these are usually held and managed 00:03:08.919 --> 00:03:11.460 through a brokerage firm. But with a gold IRA, 00:03:11.680 --> 00:03:13.759 you're actually holding the physical precious 00:03:13.759 --> 00:03:15.879 metals. You're not just investing in a piece 00:03:15.879 --> 00:03:18.819 of paper that represents gold. You actually own 00:03:18.819 --> 00:03:21.099 the gold itself. OK, that makes sense. So how 00:03:21.099 --> 00:03:22.659 does that actually work? I mean, you can't just 00:03:22.659 --> 00:03:25.020 keep gold bars in your regular bank account, 00:03:25.039 --> 00:03:27.219 right? Exactly. And that's where the idea of 00:03:27.219 --> 00:03:29.560 a custodian comes in. A custodian? Yeah, think 00:03:29.560 --> 00:03:32.379 of them as a specialized financial institution 00:03:32.379 --> 00:03:35.180 that's equipped to handle, you know, precious 00:03:35.180 --> 00:03:37.800 metals. They're responsible for managing the 00:03:37.800 --> 00:03:39.599 account and making sure everything's on the up 00:03:39.599 --> 00:03:42.979 and up, especially according to the IRS rules, 00:03:43.099 --> 00:03:45.860 which are pretty strict when it comes to gold 00:03:45.860 --> 00:03:48.500 IRAs. Oh, I bet the IRS always has their eyes 00:03:48.500 --> 00:03:51.000 on everything. For sure. Now another big difference 00:03:51.000 --> 00:03:53.259 is that with a gold IRA, you can't just store 00:03:53.259 --> 00:03:55.979 your medals wherever you want. The IRS requires 00:03:55.979 --> 00:03:58.520 that they be kept in an approved depository. 00:03:58.639 --> 00:04:01.280 A depository. What's that like? Some kind of 00:04:01.280 --> 00:04:04.300 super secure vault? Pretty much, yeah. It's a 00:04:04.300 --> 00:04:07.099 high security facility that meets specific standards 00:04:07.099 --> 00:04:09.539 for safeguarding precious metals. You know, think 00:04:09.539 --> 00:04:12.490 Fort Knox level security. Wow. OK, so you need 00:04:12.490 --> 00:04:15.449 this special custodian and your gold has to be 00:04:15.449 --> 00:04:19.170 in this Fort Knox like depository. It sounds 00:04:19.170 --> 00:04:21.009 a bit more involved than just buying some stocks 00:04:21.009 --> 00:04:23.370 online. It definitely has some extra layers, 00:04:23.370 --> 00:04:26.230 but on the plus side. The tax advantages are 00:04:26.230 --> 00:04:29.029 pretty similar to a traditional IRA. Both offer 00:04:29.029 --> 00:04:31.810 what's called tax deferred growth, meaning you 00:04:31.810 --> 00:04:34.910 don't pay taxes on any earnings from your investments 00:04:34.910 --> 00:04:37.029 until you start withdrawing the money in retirement. 00:04:37.089 --> 00:04:39.209 Oh, OK. So that part's the same. Right. All right. 00:04:39.310 --> 00:04:41.129 Well, now that we've got the basics down, let's 00:04:41.129 --> 00:04:43.290 dive into those different types of gold IRAs. 00:04:43.350 --> 00:04:46.500 You mentioned traditional Roth. and SEP. Let's 00:04:46.500 --> 00:04:49.000 start with traditional gold IRAs. What do those 00:04:49.000 --> 00:04:52.240 look like? So with a traditional gold IRA, your 00:04:52.240 --> 00:04:54.839 contributions are usually made pre -tax. What 00:04:54.839 --> 00:04:57.480 that means is the money you put in can actually 00:04:57.480 --> 00:05:00.319 lower your taxable income for the year, which 00:05:00.319 --> 00:05:02.720 can be a nice little tax break right now. Oh, 00:05:02.720 --> 00:05:05.399 so you get a potential tax break upfront. Exactly. 00:05:05.699 --> 00:05:07.800 And then, as we mentioned, any growth within 00:05:07.800 --> 00:05:10.199 the account isn't taxed until you withdraw it 00:05:10.199 --> 00:05:12.639 later on in retirement. So you defer those taxes 00:05:12.639 --> 00:05:17.019 until later. Gotcha. Makes sense. Now, what about 00:05:17.019 --> 00:05:19.920 the Roth Gold IRA? How is that different? With 00:05:19.920 --> 00:05:22.379 a Roth Gold IRA, the contributions you make are 00:05:22.379 --> 00:05:24.500 after tax, meaning you've already paid taxes 00:05:24.500 --> 00:05:26.899 on that money. So you don't get that immediate 00:05:26.899 --> 00:05:29.120 deduction like you do with a traditional IRA. 00:05:29.680 --> 00:05:32.160 But the advantage here is that if you meet certain 00:05:32.160 --> 00:05:34.500 requirements when you take withdrawals in retirement, 00:05:35.180 --> 00:05:37.279 those withdrawals, including all the growth your 00:05:37.279 --> 00:05:39.839 investments have made, can be completely tax 00:05:39.839 --> 00:05:42.660 -free. So no taxes on the withdrawals later on. 00:05:42.839 --> 00:05:45.560 That sounds pretty attractive. It can be, especially 00:05:45.560 --> 00:05:47.740 if you think you might be in a higher tax bracket 00:05:47.740 --> 00:05:50.060 during retirement than you are now. Right, right. 00:05:50.220 --> 00:05:52.079 And didn't the guide mention something about 00:05:52.079 --> 00:05:54.420 no required minimum distributions with a Roth? 00:05:54.759 --> 00:05:57.259 Yeah, that's another perk. With traditional IRAs, 00:05:57.360 --> 00:05:59.420 you have to start taking distributions at a certain 00:05:59.420 --> 00:06:02.339 age. But with a Roth, you don't. It gives you 00:06:02.339 --> 00:06:04.600 more flexibility to manage your money in retirement. 00:06:04.839 --> 00:06:08.439 So more control. Got it. Now, let's talk about 00:06:08.439 --> 00:06:11.860 that third type. SEP goal IRAs. Those are for 00:06:11.860 --> 00:06:14.040 self -employed folks and small business owners, 00:06:14.160 --> 00:06:15.639 right? That's right. What's the main benefit 00:06:15.639 --> 00:06:18.879 there? The big advantage with SFPs is that you 00:06:18.879 --> 00:06:21.379 can contribute a lot more money each year compared 00:06:21.379 --> 00:06:25.040 to traditional or Roth IRAs. Oh, so higher contribution 00:06:25.040 --> 00:06:27.500 limits. Yeah, which can be a huge plus if you're 00:06:27.500 --> 00:06:29.759 self -employed and, you know, maybe don't have 00:06:29.759 --> 00:06:31.839 a traditional employer -sponsored retirement 00:06:31.839 --> 00:06:34.579 plan. Makes sense. And how does the whole tax 00:06:34.579 --> 00:06:37.819 thing work with SEP Gold IRAs? Similar to a traditional 00:06:37.819 --> 00:06:41.199 IRA, your contributions are tax deductible. So 00:06:41.199 --> 00:06:44.060 you lower your taxable income now. And just like 00:06:44.060 --> 00:06:46.699 the other types, the money in the account grows 00:06:46.699 --> 00:06:48.939 tax -deferred until retirement. OK, so it's like 00:06:48.939 --> 00:06:51.540 a souped -up traditional IRA, basically. In a 00:06:51.540 --> 00:06:54.399 way, yeah. Higher contribution limits, same tax 00:06:54.399 --> 00:06:57.439 advantages. Gotcha. OK, so we've got these three 00:06:57.439 --> 00:07:00.040 different types, each with its own pros and cons, 00:07:00.220 --> 00:07:02.420 depending on your circumstances. Now let's say 00:07:02.420 --> 00:07:04.699 someone's listening to this and thinking, OK, 00:07:04.800 --> 00:07:07.439 a gold IRA sounds pretty good. How do I actually 00:07:07.439 --> 00:07:10.230 get started with one? Well, the gold IRA guide 00:07:10.230 --> 00:07:12.649 actually lays out a really helpful six -step 00:07:12.649 --> 00:07:14.899 process for setting one up. Let's go through 00:07:14.899 --> 00:07:17.339 it then. What's step one? Step one is to figure 00:07:17.339 --> 00:07:20.279 out your allocation. Allocation. Yeah. Basically, 00:07:20.439 --> 00:07:22.959 how much of your overall retirement savings do 00:07:22.959 --> 00:07:25.240 you want to put into precious metals? You know, 00:07:25.339 --> 00:07:27.560 some people might want to go all in on gold, 00:07:27.660 --> 00:07:31.079 but others might want a mix of maybe gold, silver, 00:07:31.339 --> 00:07:34.220 platinum, palladium. It really depends on your 00:07:34.220 --> 00:07:36.800 investment strategy and your overall risk tolerance. 00:07:37.040 --> 00:07:38.939 So it's not just a one size fits all approach. 00:07:39.180 --> 00:07:41.399 Definitely not. And it's generally a good idea 00:07:41.399 --> 00:07:43.800 to keep things balanced. Remember that eggs in 00:07:43.800 --> 00:07:46.000 one basket analogy. Right. You don't want to 00:07:46.000 --> 00:07:48.540 put all your faith in just one asset. Makes sense. 00:07:48.899 --> 00:07:50.839 Yeah. All right. What's step two? Step two is 00:07:50.839 --> 00:07:54.279 finding a trustworthy gold IRA company. OK. So 00:07:54.279 --> 00:07:56.860 this is like finding a financial advisor who 00:07:56.860 --> 00:07:59.819 specializes in gold IRAs. It's similar. Yeah. 00:08:00.399 --> 00:08:03.060 This company is going to be your main point of 00:08:03.060 --> 00:08:05.800 contact throughout the whole process. They'll 00:08:05.800 --> 00:08:08.569 help you set up the account. guide you through 00:08:08.569 --> 00:08:10.829 funding it, whether that's with new money or 00:08:10.829 --> 00:08:13.310 rollovers from other accounts, and they'll also 00:08:13.310 --> 00:08:16.009 help you buy the actual precious metals. So they're 00:08:16.009 --> 00:08:17.569 like your guide and your advocate throughout 00:08:17.569 --> 00:08:20.290 the whole thing. Exactly. A good gold IRA company 00:08:20.290 --> 00:08:22.949 can really take a lot of the stress and confusion 00:08:22.949 --> 00:08:25.810 out of the process. I bet. Okay, so you've got 00:08:25.810 --> 00:08:27.569 your allocation figured out. You found a good 00:08:27.569 --> 00:08:30.490 company to work with. What's next? Step three 00:08:30.490 --> 00:08:33.620 is choosing a custodian. Oh, right. We talked 00:08:33.620 --> 00:08:35.500 about those earlier. Those are the folks who 00:08:35.500 --> 00:08:37.019 manage the account and make sure everything's 00:08:37.019 --> 00:08:39.759 kosher with the IRS, right? Right. And it's super 00:08:39.759 --> 00:08:42.220 important to choose a custodian who has specific 00:08:42.220 --> 00:08:45.519 experience with gold IRAs. Why is that so crucial? 00:08:45.879 --> 00:08:47.879 Because they're the ones who are going to make 00:08:47.879 --> 00:08:50.779 sure you're following all those very specific 00:08:50.779 --> 00:08:53.919 IRS rules. Everything from the types of metals 00:08:53.919 --> 00:08:56.039 you hold to where they're stored has to be done 00:08:56.039 --> 00:08:58.539 just right. And you mentioned the IRS can be 00:08:58.539 --> 00:09:00.720 pretty strict about all that. They definitely 00:09:00.720 --> 00:09:04.120 are. If you mess up, you could face some hefty 00:09:04.120 --> 00:09:06.500 penalties, you know, fines and stuff, and you 00:09:06.500 --> 00:09:08.379 definitely don't want that. So it's important 00:09:08.379 --> 00:09:11.100 to have a custodian who knows the ins and outs 00:09:11.100 --> 00:09:13.600 of gold IRAs like the back of their hand. So 00:09:13.600 --> 00:09:16.659 they're like the IRS whisperers. Exactly. And 00:09:16.659 --> 00:09:19.700 often, the gold IRA company you choose will have 00:09:19.700 --> 00:09:22.159 recommendations for custodians they work with 00:09:22.159 --> 00:09:23.879 regularly. Would you say that's a good route 00:09:23.879 --> 00:09:26.889 to go? It can be, yeah. It often makes the setup 00:09:26.889 --> 00:09:28.950 process smoother since everyone's already on 00:09:28.950 --> 00:09:32.169 the same page, you know. Makes sense. Okay, so 00:09:32.169 --> 00:09:34.529 now you've got your custodian lined up. What's 00:09:34.529 --> 00:09:39.250 step four? Funding the account. Ah, right. Gotta 00:09:39.250 --> 00:09:41.940 put some money in there. Exactly. There are a 00:09:41.940 --> 00:09:43.879 couple of ways to do this. You can contribute 00:09:43.879 --> 00:09:46.120 new funds directly just like you would with a 00:09:46.120 --> 00:09:48.299 regular IRA. Okay, that's straightforward enough. 00:09:48.480 --> 00:09:52.019 Or you can transfer or roll over funds from an 00:09:52.019 --> 00:09:53.720 existing retirement account. You know, like if 00:09:53.720 --> 00:09:56.559 you have an old 401k from a previous job or something 00:09:56.559 --> 00:09:58.840 like that. So you can move money from one retirement 00:09:58.840 --> 00:10:02.679 account into a gold IRA. Yep. And the guide makes 00:10:02.679 --> 00:10:05.139 a distinction between a transfer and a rollover. 00:10:05.259 --> 00:10:08.279 A direct transfer is when the money moves directly 00:10:08.279 --> 00:10:10.820 from one institution to another without you ever 00:10:10.820 --> 00:10:13.240 actually touching it, usually less paperwork 00:10:13.240 --> 00:10:15.419 that way. And a rollover is when you actually 00:10:15.419 --> 00:10:17.480 get the money in your hands. Right. And then 00:10:17.480 --> 00:10:20.120 you have to reinvest it in your new gold IRA 00:10:20.120 --> 00:10:22.980 within a certain time frame, usually 60 days, 00:10:23.019 --> 00:10:25.580 according to the IRS. If you miss that deadline, 00:10:25.659 --> 00:10:28.720 you could end up owing taxes and even penalties 00:10:28.720 --> 00:10:31.399 on that money. Yikes. So rollovers are a bit 00:10:31.399 --> 00:10:34.379 trickier. It can be, yeah. It's best to get guidance 00:10:34.379 --> 00:10:37.700 from from your current IRA custodian, and the 00:10:37.700 --> 00:10:39.559 gold IRA company can usually help you out with 00:10:39.559 --> 00:10:41.659 the paperwork too. Good to know. All right, so 00:10:41.659 --> 00:10:43.259 you've got your account funded, you're ready 00:10:43.259 --> 00:10:45.960 to buy some gold. What's step five? Step five 00:10:45.960 --> 00:10:49.100 is purchasing the actual precious metals. But 00:10:49.100 --> 00:10:51.740 there's a catch. The IRS is very picky about 00:10:51.740 --> 00:10:54.039 what kind of metals you can hold in a gold IRA. 00:10:54.259 --> 00:10:56.159 Really? What do they care about? Purity, mainly. 00:10:56.759 --> 00:10:58.919 The metals have to meet certain minimum purity 00:10:58.919 --> 00:11:02.039 standards. For gold, it's usually 99 .5 % pure. 00:11:02.539 --> 00:11:05.679 For silver, it's 99 .9%. And for platinum and 00:11:05.679 --> 00:11:09.399 palladium, it's 99 .95%. Wow. So that old gold 00:11:09.399 --> 00:11:11.659 coin I found in my grandma's attic probably wouldn't 00:11:11.659 --> 00:11:15.559 cut it. Probably not unless it's a specific type 00:11:15.559 --> 00:11:18.899 of coin that meets the IRS requirements. So how 00:11:18.899 --> 00:11:21.059 do you know what you can and can't buy? Don't 00:11:21.059 --> 00:11:23.720 worry, the Gold IRA company will have a list 00:11:23.720 --> 00:11:26.379 of approved products. Usually it's government 00:11:26.379 --> 00:11:28.879 minted coins and bars that meet the standards. 00:11:29.259 --> 00:11:31.879 Okay, so no need to go digging for gold yourself. 00:11:32.080 --> 00:11:33.679 Nope, you can leave that to the professionals. 00:11:33.940 --> 00:11:36.759 Makes sense. All right, final step. What is it? 00:11:36.860 --> 00:11:40.419 Step six is storing your precious metals. Right, 00:11:40.519 --> 00:11:42.259 we talked about the whole approved depository 00:11:42.259 --> 00:11:44.299 thing earlier. Exactly, and this is where things 00:11:44.299 --> 00:11:48.200 get really serious. The IRS is adamant that your 00:11:48.200 --> 00:11:51.279 gold IRA metals have to be stored in an approved 00:11:51.279 --> 00:11:54.139 depository and that depository has to be managed 00:11:54.139 --> 00:11:57.700 by a licensed custodian. So no keeping them at 00:11:57.700 --> 00:12:00.580 home even if you have a really good safe. No 00:12:00.580 --> 00:12:03.220 way. Home storage is a big no -no with gold IRAs. 00:12:03.399 --> 00:12:05.240 You could get hit with some major penalties if 00:12:05.240 --> 00:12:07.259 you try that. Okay, so it's all about security 00:12:07.259 --> 00:12:11.019 and following the rules to a T. You got it. And 00:12:11.019 --> 00:12:13.460 these approved depositories are serious business. 00:12:13.659 --> 00:12:15.240 They're like those bank vaults you see in the 00:12:15.240 --> 00:12:17.679 movies with all the high -tech security systems 00:12:17.679 --> 00:12:19.940 and everything. They're designed to keep your 00:12:19.940 --> 00:12:23.419 metals safe and sound. Sounds like it. Alright, 00:12:23.580 --> 00:12:25.120 well now that we've covered the whole process 00:12:25.120 --> 00:12:27.879 of setting up a gold IRA, let's talk about why 00:12:27.879 --> 00:12:29.840 someone might want to do that in the first place. 00:12:30.419 --> 00:12:33.460 What are the potential benefits? Well, the guide 00:12:33.460 --> 00:12:36.179 highlights a few key advantages. One of the big 00:12:36.179 --> 00:12:39.259 ones is that gold is often seen as a hedge against 00:12:39.259 --> 00:12:42.440 inflation. A hedge. Yeah. Basically, it means 00:12:42.440 --> 00:12:44.399 that when the cost of living goes up and your 00:12:44.399 --> 00:12:47.000 dollar doesn't buy as much, the price of gold 00:12:47.000 --> 00:12:49.340 tends to rise along with it. So it helps protect 00:12:49.340 --> 00:12:52.500 your money from losing its value. Exactly. Gold's 00:12:52.500 --> 00:12:55.019 value isn't tied to any particular currency or 00:12:55.019 --> 00:12:57.179 government, so it can hold its own even when 00:12:57.179 --> 00:12:59.580 things get shaky in the economy. Interesting. 00:12:59.879 --> 00:13:02.120 OK, what's another benefit? Diversification. 00:13:02.299 --> 00:13:03.899 We talked about that a bit earlier. Yeah, it's 00:13:03.899 --> 00:13:06.679 a big one. Gold often moves in the opposite direction 00:13:06.679 --> 00:13:09.700 of stocks and bonds. So when those markets might 00:13:09.700 --> 00:13:12.820 be going down, gold might be going up. So it 00:13:12.820 --> 00:13:15.799 helps balance things out. Exactly. It can potentially 00:13:15.799 --> 00:13:18.179 smooth out the bumps in your overall retirement 00:13:18.179 --> 00:13:21.580 portfolio and reduce your overall risk. OK, that 00:13:21.580 --> 00:13:24.379 makes sense. What else? Well, gold is also considered 00:13:24.379 --> 00:13:26.840 a relatively safe and stable asset. It's been 00:13:26.840 --> 00:13:29.799 a store of value for centuries, you know, unlike 00:13:29.799 --> 00:13:32.360 paper money, which can be printed like crazy 00:13:32.360 --> 00:13:34.559 and lose its value pretty easily. I guess that's 00:13:34.559 --> 00:13:36.779 why they call it good as gold, huh? Yeah, pretty 00:13:36.779 --> 00:13:39.940 much. Gold has a long history of holding its 00:13:39.940 --> 00:13:42.600 value, even in times of crisis and uncertainty. 00:13:42.840 --> 00:13:45.360 And that can provide a lot of peace of mind when 00:13:45.360 --> 00:13:47.480 you're thinking about your long term financial 00:13:47.480 --> 00:13:50.000 security. Those are some pretty compelling arguments 00:13:50.000 --> 00:13:53.440 for gold. But I'm sure there are some potential 00:13:53.440 --> 00:13:56.480 downsides, too, right? Of course. Every investment 00:13:56.480 --> 00:13:59.080 has its risks. The guide talks about market volatility. 00:13:59.559 --> 00:14:01.620 Even gold isn't immune to that, huh? Nope. Gold 00:14:01.620 --> 00:14:03.700 prices can go up and down just like any other 00:14:03.700 --> 00:14:05.620 asset. It's affected by all sorts of things, 00:14:05.779 --> 00:14:08.580 you know, global events, economic conditions, 00:14:09.139 --> 00:14:11.620 even just investor sentiment. So you could buy 00:14:11.620 --> 00:14:14.000 gold when it's high and then see the price drop? 00:14:14.320 --> 00:14:16.450 It's possible, yeah. That's why it's important 00:14:16.450 --> 00:14:18.409 to think long -term when it comes to gold. It's 00:14:18.409 --> 00:14:20.730 not a get -rich -quick scheme. And it probably 00:14:20.730 --> 00:14:22.889 goes back to that idea of diversification again, 00:14:23.029 --> 00:14:25.110 right? Definitely. Don't put all your eggs in 00:14:25.110 --> 00:14:27.649 one basket, even if that basket is full of gold. 00:14:28.090 --> 00:14:31.409 Good advice. Okay, what about fees and costs? 00:14:31.789 --> 00:14:34.669 Are there any hidden expenses with gold IRAs 00:14:34.669 --> 00:14:37.070 that people should be aware of? There are definitely 00:14:37.070 --> 00:14:40.409 some fees involved. You'll typically have custodian 00:14:40.409 --> 00:14:43.490 fees, storage fees for keeping your metals in 00:14:43.490 --> 00:14:46.070 that secure depository, and there might also 00:14:46.070 --> 00:14:48.070 be some dealer markups when you buy the gold. 00:14:48.230 --> 00:14:50.309 So it's important to factor all those costs in. 00:14:50.409 --> 00:14:53.730 Absolutely. And to shop around and compare different 00:14:53.730 --> 00:14:56.490 gold IRA companies and custodians to make sure 00:14:56.490 --> 00:14:58.889 you're getting a fair deal. Transparency is key. 00:14:59.129 --> 00:15:01.269 Definitely. You want to know exactly what you're 00:15:01.269 --> 00:15:03.590 paying for. OK, now you've mentioned the IRS 00:15:03.590 --> 00:15:05.750 a few times and I have a feeling they're pretty 00:15:05.750 --> 00:15:08.809 involved in this whole gold IRA thing. How important 00:15:08.809 --> 00:15:11.509 is it to stay on the right side of the IRS with 00:15:11.509 --> 00:15:14.009 all this? It's absolutely crucial. The IRS has 00:15:14.220 --> 00:15:17.139 tons of regulations regarding gold IRAs, and 00:15:17.139 --> 00:15:18.679 you don't want to mess around with them. What 00:15:18.679 --> 00:15:20.559 kind of things do they regulate? Everything. 00:15:21.139 --> 00:15:23.340 The types of metals you can hold, the purity 00:15:23.340 --> 00:15:26.000 requirements, the storage arrangements, even 00:15:26.000 --> 00:15:28.340 the reporting procedures. You have to follow 00:15:28.340 --> 00:15:30.639 their rules to the letter or you could face some 00:15:30.639 --> 00:15:33.720 serious penalties. OK, so definitely not an area 00:15:33.720 --> 00:15:36.360 to cut corners. Nope. And that's why it's so 00:15:36.360 --> 00:15:39.240 important to work with a reputable gold IRA company 00:15:39.240 --> 00:15:41.659 and custodian who really know their stuff. They 00:15:41.659 --> 00:15:43.940 can help you navigate all those regulations and 00:15:43.940 --> 00:15:46.039 make sure you're in compliance. So they're not 00:15:46.039 --> 00:15:48.700 just there to help you set up the account. They're 00:15:48.700 --> 00:15:51.200 also there to keep you out of trouble with the 00:15:51.200 --> 00:15:53.980 IRS. Exactly. They're like your gold IRA guardian 00:15:53.980 --> 00:15:55.779 angels making sure everything's on the up and 00:15:55.779 --> 00:15:59.720 up. Good to know. All right. Last question on 00:15:59.720 --> 00:16:02.610 financial downsides. The guide mentioned something 00:16:02.610 --> 00:16:05.350 about liquidity. What does that mean in the context 00:16:05.350 --> 00:16:09.070 of gold IRAs? Liquidity basically means how easy 00:16:09.070 --> 00:16:12.350 it is to turn an asset into cash. And while gold 00:16:12.350 --> 00:16:14.990 is valuable, selling it isn't always as quick 00:16:14.990 --> 00:16:18.129 or easy as, say, selling stocks online. You have 00:16:18.129 --> 00:16:20.470 to find a buyer, arrange transportation, all 00:16:20.470 --> 00:16:22.870 that. So it's not as simple as just clicking 00:16:22.870 --> 00:16:26.009 a button. Not quite. But there are ways to make 00:16:26.009 --> 00:16:29.169 it easier. A lot of gold IRA companies offer 00:16:29.169 --> 00:16:31.409 buyback programs. Meaning they'll buy your gold 00:16:31.409 --> 00:16:34.309 back from you. Exactly. It's a more streamlined 00:16:34.309 --> 00:16:36.470 way to sell your gold if you need to access the 00:16:36.470 --> 00:16:39.330 cash. So when you're choosing a company, it's 00:16:39.330 --> 00:16:41.470 worth looking into whether they offer a buyback 00:16:41.470 --> 00:16:44.610 program and what their terms are. Good tip. All 00:16:44.610 --> 00:16:46.029 right. Well, we've covered a lot of ground today. 00:16:46.190 --> 00:16:47.870 Any final thoughts for our listeners who are 00:16:47.870 --> 00:16:50.889 considering a gold IRA? I'd say the main takeaway 00:16:50.889 --> 00:16:53.649 is that a gold IRA can be a good way to diversify 00:16:53.649 --> 00:16:56.049 your retirement savings and potentially protect 00:16:56.049 --> 00:16:58.789 yourself against inflation, but it's not something 00:16:58.789 --> 00:17:01.909 to jump into blindly. Do your research, understand 00:17:01.909 --> 00:17:04.190 the risks, and make sure you're working with 00:17:04.190 --> 00:17:06.490 trustworthy professionals who can guide you through 00:17:06.490 --> 00:17:08.609 the process. And don't forget about all those 00:17:08.609 --> 00:17:11.309 IRS rules. Definitely not. The last thing you 00:17:11.309 --> 00:17:13.650 want is to end up owing the IRS a bunch of money 00:17:13.650 --> 00:17:15.630 because you didn't cross your t's and dot your 00:17:15.630 --> 00:17:18.309 i's. Great advice. Well, thanks for walking us 00:17:18.309 --> 00:17:20.440 through all this today. I think our listeners 00:17:20.440 --> 00:17:23.000 have a much better understanding of gold IRAs 00:17:23.000 --> 00:17:24.140 now. My pleasure.