WEBVTT 00:00:00.000 --> 00:00:02.240 Hey everyone, and welcome back for another deep 00:00:02.240 --> 00:00:05.099 dive. Today we're going exploring the world of 00:00:05.099 --> 00:00:08.519 gold IRAs. Yeah, gold IRAs. We've got some really 00:00:08.519 --> 00:00:10.580 great material here that breaks down the different 00:00:10.580 --> 00:00:15.560 types and advantages, potential drawbacks, really 00:00:15.560 --> 00:00:17.699 kind of all the ins and outs of the different 00:00:17.699 --> 00:00:20.960 ways that you can use this to invest in your 00:00:20.960 --> 00:00:24.760 future. So our mission, if you will, in this 00:00:24.760 --> 00:00:26.879 deep dive is to help you understand the difference. 00:00:27.289 --> 00:00:30.050 between these different types. We've got traditional 00:00:30.050 --> 00:00:33.670 gold IRAs, Roth gold IRAs, and SEP gold IRAs. 00:00:34.909 --> 00:00:37.689 And so hopefully by the end of this, you'll be 00:00:37.689 --> 00:00:40.329 able to see which one of those might be the best 00:00:40.329 --> 00:00:43.490 fit for your own personal financial goals. So 00:00:43.490 --> 00:00:48.070 let's start with traditional gold IRAs. What 00:00:48.070 --> 00:00:51.109 is the core idea behind this type of IRA? Well 00:00:51.109 --> 00:00:52.829 the main thing with a traditional gold IRA is 00:00:52.829 --> 00:00:55.649 that you're contributing pre -tax dollars. And 00:00:55.649 --> 00:00:58.820 this can actually reduce your taxable income 00:00:58.820 --> 00:01:01.020 for the current year. Oh, interesting. It's kind 00:01:01.020 --> 00:01:04.060 of like a little immediate tax break. OK, so 00:01:04.060 --> 00:01:07.560 if I'm looking at my taxes for this year, and 00:01:07.560 --> 00:01:10.159 I decided to put some money into a traditional 00:01:10.159 --> 00:01:13.959 gold IRA, that could actually lower the amount. 00:01:13.959 --> 00:01:16.700 Exactly. Exactly. So that's one of the big benefits. 00:01:16.980 --> 00:01:20.700 And then the second key piece is that any growth 00:01:20.700 --> 00:01:24.180 within the account, any appreciation in the value 00:01:24.180 --> 00:01:27.739 of the gold is tax deferred. You don't have to 00:01:27.739 --> 00:01:30.400 pay taxes on those gains until you actually withdraw 00:01:30.400 --> 00:01:33.359 the money in retirement. Oh, wow. Yeah, so think 00:01:33.359 --> 00:01:35.420 about that. You would have decades of growth 00:01:35.420 --> 00:01:38.420 compounding without being chipped away by those 00:01:38.420 --> 00:01:41.019 annual taxes. Yeah, so it just keeps growing 00:01:41.019 --> 00:01:42.879 and growing and growing. That's right. And then 00:01:42.879 --> 00:01:45.819 finally, when you hit retirement, then you pay 00:01:45.819 --> 00:01:48.340 taxes on it. Exactly. OK, so that sounds like 00:01:48.340 --> 00:01:51.079 that could really add up, especially if you're 00:01:51.079 --> 00:01:53.819 investing for the long term. It really can. Yeah, 00:01:53.980 --> 00:01:56.359 your money has more room to grow. because you're 00:01:56.359 --> 00:01:58.200 not constantly paying those taxes on the gains 00:01:58.200 --> 00:02:00.840 as they happen. Exactly. And this is something 00:02:00.840 --> 00:02:03.980 that's particularly appealing for folks who think 00:02:03.980 --> 00:02:06.280 they might be in a lower tax bracket when they 00:02:06.280 --> 00:02:10.180 retire. Oh, okay. So all that tax -deferred growth 00:02:10.180 --> 00:02:13.180 could become a really significant nest egg, and 00:02:13.180 --> 00:02:14.900 then when you finally withdraw it, you're being 00:02:14.900 --> 00:02:17.860 taxed at a lower rate. Got it. Okay, so the big 00:02:17.860 --> 00:02:22.379 takeaway with traditional gold IRAs. is that 00:02:22.379 --> 00:02:24.979 you get that immediate benefit of reducing your 00:02:24.979 --> 00:02:27.039 taxable income right now. Right. Which is especially 00:02:27.039 --> 00:02:29.199 helpful if you're maybe in a higher income bracket 00:02:29.199 --> 00:02:30.900 right now. Yeah. If you're making good money 00:02:30.900 --> 00:02:34.139 now, then that can be a real advantage. Yeah. 00:02:34.199 --> 00:02:35.780 But you got to remember that Uncle Sam's going 00:02:35.780 --> 00:02:37.560 to come knocking eventually. You got to. When 00:02:37.560 --> 00:02:39.639 you take that money out. That's the trade off. 00:02:39.979 --> 00:02:43.099 Pre -tax contributions now. Tax withdrawals later. 00:02:43.280 --> 00:02:46.740 Got it. OK. So now let's flip the script and 00:02:46.740 --> 00:02:50.159 talk about Roth Gold IRAs. OK. Roth Gold IRAs. 00:02:50.159 --> 00:02:52.479 How is it different? So the main difference with 00:02:52.479 --> 00:02:55.539 a Roth Gold IRA is that you're contributing money 00:02:55.539 --> 00:02:57.879 that you've already paid taxes on. Okay. So I'm 00:02:57.879 --> 00:02:59.539 paying taxes on the money before I even put it 00:02:59.539 --> 00:03:01.780 in. That's right. It's after tax dollars. So 00:03:01.780 --> 00:03:03.639 you don't get that immediate tax break upfront. 00:03:03.879 --> 00:03:06.139 Okay. So what's the advantage then? Well, here's 00:03:06.139 --> 00:03:08.780 where it gets exciting. With a Roth Gold IRA, 00:03:09.060 --> 00:03:12.879 you have the potential for tax -free growth and 00:03:12.879 --> 00:03:16.419 even more importantly, tax -free withdrawals 00:03:16.419 --> 00:03:20.250 in retirement. Oh, wow. So as long as you meet 00:03:20.250 --> 00:03:23.669 certain conditions, when you take that money 00:03:23.669 --> 00:03:27.310 out, in retirement, you won't owe any federal 00:03:27.310 --> 00:03:30.110 income taxes on it. OK, so that's a huge difference. 00:03:30.150 --> 00:03:33.569 It is. Especially if you're thinking about maybe 00:03:33.569 --> 00:03:35.930 being in a higher tax bracket later on. Exactly. 00:03:36.090 --> 00:03:38.650 OK, so if you're thinking that maybe down the 00:03:38.650 --> 00:03:41.210 line, you'll be making more money, A Roth Gold 00:03:41.210 --> 00:03:43.509 IRA might be a better option because you'll be 00:03:43.509 --> 00:03:45.490 paying those taxes now while you're in a lower 00:03:45.490 --> 00:03:47.710 bracket. That's thinking. And then when you withdraw 00:03:47.710 --> 00:03:50.189 it later, you won't owe anything. Exactly. It's 00:03:50.189 --> 00:03:52.569 all tax -free at that point. Wow. That's pretty 00:03:52.569 --> 00:03:54.550 compelling. It is a powerful feature. So to recap 00:03:54.550 --> 00:03:57.270 here, with a Roth Gold IRA, you've got those 00:03:57.270 --> 00:03:59.810 after -tax contributions and then potentially 00:03:59.810 --> 00:04:03.889 tax -free growth and tax -free withdrawals. Tax 00:04:03.889 --> 00:04:07.849 -free withdrawals. That's the big one. No required 00:04:07.849 --> 00:04:10.629 minimum distributions during your lifetime. Oh 00:04:10.629 --> 00:04:13.270 Okay, so you've got a lot more control over when 00:04:13.270 --> 00:04:16.250 and how you access your funds. That's right More 00:04:16.250 --> 00:04:18.589 flexibility for sure. Okay, so we've talked about 00:04:18.589 --> 00:04:21.050 traditional we've talked about Roth Now there's 00:04:21.050 --> 00:04:24.470 this other one CEP gold IRAs, right? CEP gold 00:04:24.470 --> 00:04:26.430 IRAs and this one seems like it's for a very 00:04:26.430 --> 00:04:29.089 specific group of people It is it's designed 00:04:29.089 --> 00:04:31.430 specifically for those who are self -employed 00:04:31.430 --> 00:04:33.350 or own small businesses Okay, so if I'm working 00:04:33.350 --> 00:04:36.509 for a you know, regular company This isn't really 00:04:36.509 --> 00:04:38.350 an option for me. That's generally the case, 00:04:38.350 --> 00:04:41.509 yeah. But for those who are self -employed, one 00:04:41.509 --> 00:04:44.709 of the biggest advantages of a SEP Gold IRA is 00:04:44.709 --> 00:04:46.790 its significantly higher contribution limits. 00:04:46.930 --> 00:04:49.709 OK, so we're talking about way more. Much higher. 00:04:49.750 --> 00:04:51.810 Than traditional or Roth. Exactly. What kind 00:04:51.810 --> 00:04:53.589 of numbers are we talking about here? Well, for 00:04:53.589 --> 00:04:57.589 2025, the contribution limit for a SEP IRA is 00:04:57.589 --> 00:05:00.149 up to 25 % of your net self -employment income. 00:05:00.149 --> 00:05:04.209 OK. Or a maximum of $70 ,000, whichever is less. 00:05:04.310 --> 00:05:07.240 OK, so that's That's huge compared to the traditional 00:05:07.240 --> 00:05:12.000 and Roth, which were significantly lower. Yeah. 00:05:12.079 --> 00:05:14.939 You can put away a lot more with a SEP if you're 00:05:14.939 --> 00:05:17.379 eligible. Yeah. OK. So that really highlights 00:05:17.379 --> 00:05:19.699 the potential for just accelerated savings. Right. 00:05:19.720 --> 00:05:22.740 You can supercharge your retirement savings with 00:05:22.740 --> 00:05:26.040 a SEP. If you're eligible. Exactly. OK. And then 00:05:26.040 --> 00:05:29.100 similar to a traditional IRA. The contributions 00:05:29.100 --> 00:05:32.100 you make to a SEP Gold IRA are also tax deductible. 00:05:32.240 --> 00:05:34.220 That's right. So you get that upfront tax benefit. 00:05:34.379 --> 00:05:36.519 Plus, the money in the account grows tax deferred 00:05:36.519 --> 00:05:38.519 until retirement, just like the other types. 00:05:38.819 --> 00:05:41.259 Got it. OK. So for those of you out there who 00:05:41.259 --> 00:05:44.139 are self -employed or running a small business, 00:05:44.920 --> 00:05:47.180 a SEP Gold IRA really gives you the opportunity 00:05:47.180 --> 00:05:51.339 to sock away. a lot more for retirement. It really 00:05:51.339 --> 00:05:53.120 does. And get that tax break too. You get the 00:05:53.120 --> 00:05:55.379 best of both worlds. Yeah. Okay. So let's just 00:05:55.379 --> 00:05:57.779 do a quick side -by -side comparison of the contribution 00:05:57.779 --> 00:06:00.019 limit. Okay. Good idea. Just so everybody's clear 00:06:00.019 --> 00:06:03.019 on what we're talking about here. So for traditional 00:06:03.019 --> 00:06:05.860 and Roth IRAs, the combined annual limit for 00:06:05.860 --> 00:06:09.819 2025 is $7 ,000 if you're under 50. Yeah. And 00:06:09.819 --> 00:06:13.379 then it increases to $8 ,000 if you're 50 or 00:06:13.379 --> 00:06:15.699 older. That's the catch -up contribution for 00:06:15.699 --> 00:06:17.319 those nearing retirement. And then you've got 00:06:17.319 --> 00:06:21.399 the SEP IRA. With you know, yeah a much higher 00:06:21.399 --> 00:06:24.439 limit. Yeah a lot more generous up to 25 % of 00:06:24.439 --> 00:06:27.680 your compensation or $70 ,000 whichever is less. 00:06:28.079 --> 00:06:29.860 Okay, so it's really important to think about 00:06:29.860 --> 00:06:32.740 those limits when you're trying to figure out 00:06:32.740 --> 00:06:35.240 Which IRA might be the best for you? Absolutely. 00:06:35.639 --> 00:06:37.019 All right So we've talked about the three different 00:06:37.019 --> 00:06:39.699 types of gold IRAs But let's step back for a 00:06:39.699 --> 00:06:42.079 second and talk about why you might want to even 00:06:42.079 --> 00:06:43.959 consider goals in the first place Right. That's 00:06:43.959 --> 00:06:47.480 a good point. Why gold at all? Yeah, so Regardless 00:06:47.480 --> 00:06:50.579 of which IRA structure you choose, what are the 00:06:50.579 --> 00:06:54.060 benefits of actually having gold as part of your 00:06:54.060 --> 00:06:55.920 retirement portfolio? That's a great question. 00:06:56.000 --> 00:06:58.899 And there are several potential benefits to consider. 00:06:59.060 --> 00:07:01.879 One of the big ones is that historically, gold 00:07:01.879 --> 00:07:04.160 has acted as a really reliable store of value. 00:07:04.379 --> 00:07:06.399 OK, so we hear that phrase a lot, store of value. 00:07:06.579 --> 00:07:09.040 But what does that actually mean in practical 00:07:09.040 --> 00:07:11.920 terms? So in practical terms, it means that gold 00:07:11.920 --> 00:07:15.329 tends to hold its value. Even when other assets 00:07:15.329 --> 00:07:18.389 like stocks and bonds are fluctuating a lot. 00:07:18.389 --> 00:07:21.269 Okay, so it can provide a hedge against market 00:07:21.269 --> 00:07:23.910 volatility Okay, so it's like a kind of stabilizer. 00:07:23.910 --> 00:07:26.430 That's a good way to put it in my portfolio Okay, 00:07:26.829 --> 00:07:29.889 so for example during the 2008 financial crisis. 00:07:30.069 --> 00:07:33.209 Oh, yeah, the stock market really tanked But 00:07:33.209 --> 00:07:36.220 the price of gold actually went up Oh, wow. So 00:07:36.220 --> 00:07:38.740 that's a really clear example of how gold can 00:07:38.740 --> 00:07:41.579 act as a safe haven during times of economic 00:07:41.579 --> 00:07:43.899 uncertainty. So when everything else is going, 00:07:44.600 --> 00:07:47.300 gold is going up. Potentially, yeah. OK, so that's 00:07:47.300 --> 00:07:49.579 one big benefit. What about inflation? Inflation 00:07:49.579 --> 00:07:52.160 is another big one. We always hear about gold 00:07:52.160 --> 00:07:54.279 as a way to hedge against inflation. Exactly. 00:07:54.819 --> 00:07:56.839 So, you know, inflation erodes the purchasing 00:07:56.839 --> 00:08:00.100 power of your money over time. Right. And historically, 00:08:00.319 --> 00:08:03.199 gold's value has tended to rise along with the 00:08:03.199 --> 00:08:06.160 cost of living. OK. So by including gold in your 00:08:06.160 --> 00:08:09.040 IRA, you're potentially protecting your retirement 00:08:09.040 --> 00:08:11.800 funds from those damaging effects of inflation. 00:08:12.100 --> 00:08:15.160 So as things get more expensive, the value of 00:08:15.160 --> 00:08:18.970 the gold should also go up. That's the idea. 00:08:19.430 --> 00:08:20.990 OK, and then the final benefit we'll talk about 00:08:20.990 --> 00:08:23.509 is diversification. Right. Diversification is 00:08:23.509 --> 00:08:25.610 crucial. So you want to spread your investments 00:08:25.610 --> 00:08:27.329 across different asset classes. Right. Don't 00:08:27.329 --> 00:08:29.389 put all your eggs in one basket. Exactly. And 00:08:29.389 --> 00:08:32.610 gold can be a really valuable part of that diversification 00:08:32.610 --> 00:08:35.970 strategy. OK, so how so? Well, gold often behaves 00:08:35.970 --> 00:08:38.389 differently than other assets like stocks and 00:08:38.389 --> 00:08:40.889 bonds. OK. So there are times when gold does 00:08:40.889 --> 00:08:43.809 well while stocks and bonds are struggling and 00:08:43.809 --> 00:08:48.220 vice versa. OK. So by adding gold, you're potentially 00:08:48.220 --> 00:08:51.799 reducing your overall risk and creating a more 00:08:51.799 --> 00:08:53.940 stable portfolio. So it's all about balance? 00:08:54.220 --> 00:08:56.580 That's it. Okay, so to recap, we've looked at 00:08:56.580 --> 00:08:59.559 the three main types of gold IRAs, traditional, 00:08:59.840 --> 00:09:03.039 Roth, and SEP. Yep. Can you just walk us through 00:09:03.039 --> 00:09:05.220 one more time the key differences? Absolutely. 00:09:05.879 --> 00:09:07.700 So traditional gold IRAs, those are pre -tax 00:09:07.700 --> 00:09:10.779 contributions, tax -deferred growth, and then 00:09:10.779 --> 00:09:12.799 you pay taxes on the withdrawals and retirement. 00:09:13.059 --> 00:09:16.440 Roth gold IRAs, you're contributing after -tax 00:09:16.440 --> 00:09:20.539 dollars, Potential for tax -free growth and tax 00:09:20.539 --> 00:09:23.379 -free withdrawals later on. And then SEP gold 00:09:23.379 --> 00:09:25.779 IRAs. Those are for the self -employed and small 00:09:25.779 --> 00:09:29.600 business owners. Higher contribution limits and 00:09:29.600 --> 00:09:31.720 tax -deductible contributions. Okay, and all 00:09:31.720 --> 00:09:34.620 of them offer the potential benefits of gold. 00:09:34.960 --> 00:09:36.840 That's right, like hedging against volatility, 00:09:37.480 --> 00:09:40.600 protection from inflation and diversification. 00:09:40.700 --> 00:09:44.600 Okay, so for our listeners out there who are 00:09:44.600 --> 00:09:48.259 thinking about planning for the retirement, and 00:09:48.259 --> 00:09:50.639 maybe thinking about gold, what's the one thing 00:09:50.639 --> 00:09:53.100 that they should really take away from this conversation? 00:09:53.259 --> 00:09:55.559 I think the key takeaway is that you really need 00:09:55.559 --> 00:09:58.240 to consider your own personal circumstances and 00:09:58.240 --> 00:10:01.000 goals when deciding which gold IRA is right for 00:10:01.000 --> 00:10:04.320 you. So think about your current income, your 00:10:04.320 --> 00:10:07.080 expected tax bracket in retirement, your risk 00:10:07.080 --> 00:10:10.159 tolerance, and then choose the option that aligns 00:10:10.159 --> 00:10:12.179 best with your overall financial plan. So really 00:10:12.179 --> 00:10:14.639 it's not a one size fits all. Not at all. Everyone's 00:10:14.639 --> 00:10:17.080 situation is unique. Yeah. Okay. Well, this has 00:10:17.080 --> 00:10:19.340 been a really fascinating look at Gold IRAs. 00:10:20.320 --> 00:10:23.659 And I hope our listeners out there found it useful 00:10:23.659 --> 00:10:28.620 in their own journey towards, you know, planning 00:10:28.620 --> 00:10:30.720 for their retirement. Absolutely. And if you're 00:10:30.720 --> 00:10:32.779 interested in learning more about Gold IRAs, 00:10:32.960 --> 00:10:34.779 we definitely encourage you to, you know, do 00:10:34.779 --> 00:10:37.659 your own research and consult with a financial 00:10:37.659 --> 00:10:40.120 advisor. A financial advisor can help tailor 00:10:40.120 --> 00:10:43.039 a plan to your specific needs. Yeah, absolutely. 00:10:43.759 --> 00:10:45.039 All right, well, thanks for joining us for another 00:10:45.039 --> 00:10:47.019 deep dive. Thanks for having me. And we'll see 00:10:47.019 --> 00:10:48.080 you next time. See you next time.