Hey, everyone. Welcome back to The Deep Dive.
We're diving into something that's been generating
a lot of buzz, especially when it comes to planning
for retirement. We're talking about gold IRAs.
Yeah. And we're going to unpack it all today
based on the gold IRA investing guide, Tommy
25, to help you figure out if this is something
that might make sense for your retirement plan.
Exactly. So first things first, what exactly
are we talking about when we say gold IRA? Well,
you can think of it as a specific type of IRA,
a self -directed individual retirement account.
But the key here, the big difference, is that
instead of just holding stocks or bonds, you
can actually have physical precious metals. Okay,
so we're talking actual gold bars and coins,
right? Like the real deal. Exactly. You can hold
gold, silver, platinum, palladium, though of
course the IRS has some rules about it. The metals
have to meet certain purity standards. For gold
bullion, for instance, it usually needs to be
at least 99 .5 % pure. So not just any old gold
will do. Yeah. Got it. And this whole idea of
holding gold in an IRA, this is a relatively
recent thing, right? Right. It became possible
thanks to the Taxpayer Relief Act of 1997. That's
when the IRS started allowing for these self
-directed IRAs to hold precious metals. Now,
you keep saying self -directed. I think that's
a really important piece for our listeners to
understand. What does that actually mean for
someone looking at their retirement options?
A self -directed IRA basically gives you more
control, more flexibility over what you invest
in within that IRA. So while we're focusing on
precious metals today, you could technically
have a mix of traditional assets like stocks
and bonds alongside alternative investments.
So it's about having more options, a more diversified
portfolio within that retirement account. Exactly.
Though, again, our focus today is going to be
on those precious metals, especially gold, within
a gold IRA. And that's what we're going to try
to break down today using the Gold IRA Investing
Guide 2025 as our roadmap. We're going to try
to cut through the jargon and figure out if a
gold IRA is something you should seriously consider,
especially because we know that a lot of people
are looking for more control, more security when
it comes to planning for their financial future.
Yeah, that's definitely something we're seeing
more and more of. You know, we've seen a real
shift in the way retirement benefits work these
days. Traditional company pensions, they're becoming
less common and individuals are having to take
more responsibility for their own retirement
planning. So it makes sense that people are looking
at different options, different ways to approach
retirement. And gold IRAs seem to be gaining
a lot of traction. What's driving this growing
interest in holding gold as part of your retirement
strategy? I'd say one of the biggest factors
is the idea of diversification. I mean, you know,
the old adage, don't put all your eggs in one
basket. All right, spread the risk. Yeah. And
the guide highlights this by referencing studies
that show historically gold has had a low correlation
with, say, the S &P 500. Meaning? Meaning when
the stock market takes a big dip, gold doesn't
necessarily follow suit. It often moves in a
different direction, maybe even goes up in value.
So it can act as a kind of counterbalance in
your portfolio. You know, bonds are often seen
as that counterweight to stocks. Right. They're
supposed to provide some stability when the stock
market is going haywire. Exactly. And the guide
is saying that precious metals, especially gold,
can play a similar role, potentially even more
effectively in some cases. It can be a hedge,
a way to protect yourself against the ups and
downs of the market, and especially those unexpected
economic storms we all know can happen. Exactly.
You know, that's one of the big selling points
of a gold IRA, the peace of mind that it can
offer. Think about it. If you're nearing retirement
or already tired, the idea of not having to constantly
watch the market, that can be really appealing.
Yeah, being able to sleep at night without worrying
about your nest egg shrinking is a huge benefit
for many people. So let's get into why gold,
specifically. The guide goes into quite a bit
of detail about why investors choose gold, why
it's seen as such a valuable asset. What are
some of the key points that our listeners should
be aware of? One of the things that stands out
is the fact that there's just a consistent high
demand for gold. You know, it's used in so many
different industries, electronics, jewelry, industrial
applications. And this demand is especially strong
in rapidly growing economies like China and India.
So it's not just a shiny thing that people like.
It actually has real world uses driving its value.
Exactly. And the guide makes the point that as
these economies continue to develop, the demand
for gold is only going to increase. But that's
just one side of the coin. What's really interesting
is gold's role as a potential hedge against inflation.
OK, so how does that work? Because inflation
is a real concern for a lot of people, especially
when it comes to retirement savings. Well, unlike
currencies like the US dollar, the supply of
gold is finite. You can't just print more of
it. It's a tangible asset. And the guide explains
that this limited supply is what makes gold such
a good hedge against inflation and currency devaluation.
Historically, gold has tended to hold its value
even when currencies fluctuate. So in theory,
if the value of the dollar goes down, the value
of gold could go up, or at least stay more stable.
That's the idea. It's important to note that
it's not a perfect hedge in every scenario. The
guide does mention periods of, for example, what's
called stagflation, where gold's performance
was a little more complicated. But the general
idea is that it helps protect your purchasing
power in the long run. So it's a more reliable
store of value potentially than just having cash
sitting in a bank account? Potentially, yes.
And the guide also makes another interesting
point. Gold's value isn't necessarily tied to
the performance of the overall economy. So even
in times of economic downturns or recessions,
the value of gold can actually increase. So when
things are looking bad, people flock to gold
as a safe haven. Right. And over the long term,
historically, it's tended to increase in value
steadily. It might not be a get rich quick scheme,
but it's often seen as a dependable way to preserve
your wealth, which is, of course, very important
for retirement planning. And what about during
times of real crisis, you know, like major geopolitical
events or financial meltdowns? The guide actually
refers to gold as a crisis commodity. Yeah, this
is a really interesting point. Whenever there's
a lot of instability, uncertainty, whether it's
political, economic, or global, people tend to
flock to gold. It's seen as a stable asset in
times of turmoil. So it's almost like an insurance
policy for your portfolio. That's a good way
to put it. And finally, we can't forget about
the liquidity aspect. You know, gold is relatively
easy to buy and sell. There are various ways
to invest in it. ETFs, stocks, derivatives. And
of course, with the gold IRA, you're holding
the physical bullion, which, especially in the
form of gold coins, can be readily converted
to cash if needed. So you've got options, different
ways to access your investment. Now the guide
also spent some time talking about silver, why
the focus on silver in addition to gold. It seems
like there's a growing trend of investors who,
when they start looking into gold IRAs, they
end up also adding silver to their portfolio.
The guide delves deeper into the potential of
silver, the different types of silver investments,
and the global market for silver. And there's
even an expert prediction mentioned in the guide,
something about a potential surge in silver prices
coming up. Yeah, they're predicting a potential
20 % increase in silver's value by 2025. So it's
clearly catching the attention of investors alongside
gold. OK, so lots to consider there. But let's
get down to the nitty gritty. What are the core
advantages of having these precious metals, particularly
gold, within a gold IRA, as opposed to just buying
gold coins or bars outright? The fundamental
advantage, the one the guide really emphasizes,
is that with a gold IRA, you have direct ownership
of that physical gold bullion. You're not buying
shares in a company or a mutual fund. You actually
own those gold bars or coins. And the guide makes
it clear that the price of that physical gold
is tied directly to the spot price, which is
essentially the current market price for an ounce
of gold. So it's like owning a piece of that
actual commodity. Exactly. And as we talked about
before, the guide highlights that long -term
stability of gold prices, historically speaking.
It tends to increase in value over time, making
it potentially a suitable investment for retirement.
And of course, being an IRA. There are tax implications.
Are those spelled out in the guide as well? Oh
yeah, for sure. They point out that one of the
main benefits of having a gold IRA is the potential
tax advantages. So while you will eventually
pay taxes on your gains, typically when you start
taking distributions in retirement, the tax rates
associated with gold held as a capital asset
within an IRA, they're generally lower. So there's
a potential tax efficiency aspect as well. Right.
And the guide also mentions that under certain
circumstances, you might be able to avoid those
early withdrawal penalties that typically come
with IRAs. Like, for instance, if you have certain
medical expenses or are making a first -time
home purchase, you might be able to access those
funds early without penalty. OK, so definitely
some tax benefits to consider there. Now, setting
up a gold IRA, I'm guessing it's a little bit
more involved than just opening a regular IRA
at your local bank, right? Can you walk us through
what that process looks like based on the guide
so our listeners know what to expect. Yeah, it's
definitely a bit more specialized. The guide
breaks it down and emphasizes that often the
easiest way to set up a Gold IRA is to transfer
funds from an existing retirement plan, you know,
like a 401k from a previous employer. And they
talk about the IRA rollover process. Right, so
rolling over that 401k into this new type of
account. Exactly. And they make the point that
if you've already left the company sponsoring
that 401k, the rollover can actually be quite
simple. So it's not necessarily a complicated
process. Not always. But there's one thing to
keep in mind, and the guide highlights this.
You want to be clear on whether you're doing
a rollover or a transfer. They're not quite the
same thing. What's the difference? A rollover
is when you get a check made out to you personally,
and then you have a limited time to deposit that
money into the new gold IRA. A transfer is when
the funds move directly between the accounts,
without you ever actually holding that money.
And the guide points out that there can be tax
implications depending on which method you choose.
So you definitely want to get good advice on
that front. Now what about costs? Are there specific
fees associated with gold IRAs that people should
be aware of? Yeah, there are a few things to
watch out for. The guide outlines those typical
fees. There's usually a one -time seller's fee,
sometimes called a setup fee. It varies depending
on the company you choose. Then there are annual
custodian fees. Remember those custodians we
were talking about? They're required when the
government for these accounts and they charge
a fee for their services. So those annual custodian
fees, those are just something you have to factor
in. Yeah, they're usually unavoidable. And then
there are the annual storage fees. You know,
you can't just keep those gold bars under your
mattress. You have to store them in an IRS approved
depository. So it's not just about the price
of gold. It's also about the ongoing costs of
maintaining that gold IRA. Right, you gotta keep
that in mind. Now the guide does point out that
some companies will waive those first -year admin
and storage fees as an incentive to sign up with
them. And they also stress the importance of
understanding whether a company charges flat
rates or scaled rates for those annual fees.
Scaled rates meaning? Meaning they take a percentage
of your holdings every year. So if your account
grows, those fees grow too. It's important to
understand that difference because it can really
affect your overall returns. So there's a real
due diligence aspect here, making sure you understand
those fees and charges before you commit. Absolutely.
And you mentioned IRS approved storage. That
sounds like a crucial element of all this. It's
mandatory, actually. The guide emphasizes that
if you have a gold IRA, those metals have to
be stored in an IRS approved depository until
you reach age 59 and a half. you can't keep them
at home. Makes sense. So how does that work?
Well, the guide touches on the different types
of storage options. There's segregated storage,
where your specific bars or coins are kept separate.
And then there's commingled storage, where they're
stored together with other investors' metals
of the same type. There's also allocated storage,
where you own specific, identifiable bars and
non -allocated storage, which is kind of like
owning a share in a pool of gold. So different
levels of ownership and separation. And I'm guessing
the fees vary depending on the type of storage
you choose. Right. The guide goes into more detail
about those options, but it's definitely something
to consider. So you've got these custodians,
these depositories. It seems like setting up
and managing a Gold IRA can be pretty complex.
That's where these Gold IRA companies come in,
right? The guide talks about working with them.
Yeah, exactly. They basically act as facilitators
as a one -stop shop. They help you set up the
account, handle all the paperwork. work with
the custodian on your behalf, and even assist
with purchasing those precious metals. You know,
they help you navigate the whole process. So
it takes some of the complexity out of the equation
for the average investor. Yeah, that's the idea.
And they're supposed to be experts in retirement
planning, familiar with all the IRS regulations
and requirements. They usually have preferred
custodians they work with. But as the guide points
out, you, as the investor, can often choose your
own custodian if you prefer. So you do have some
say in the matter. But it sounds like having
a gold IRA company handle the details can make
things a lot smoother. But of course, with so
many companies out there, how do you choose the
right one? That's a great question. The guide
offers some really good advice on that front.
I'm all ears. What should our listeners be looking
for? First and foremost, you want to look for
a company with a strong reputation and experience
in the field. You want to see a proven track
record, real testimonials from satisfied customers,
and a reputation for fairness and transparency.
Do your research. Check those online reviews.
Absolutely. And then of course, fees. Always
pay close attention to the fees. The guide recommends
choosing companies with flat fee structures whenever
possible, rather than plans with a bunch of hidden
costs that can sneak up on you later. Transparency
is key. Absolutely. And you want a company that's
flexible, that can tailor their plans to your
individual needs and goals, regardless of how
much money you're investing. So make sure they're
listening to your specific situation, not just
trying to shoehorn you into a one -size -fits
-all plan. Is there a way to kind of vet these
companies from an outside perspective, get a
sense of how reliable they are. The guide recommends
checking with some of those consumer watchdog
organizations, like the Better Business Bureau,
TrustLink, and the Business Consumer Alliance.
They keep track of complaints and how well companies
respond to them. So it's a good way to see if
they have a history of good customer service
and ethical practices. Exactly. OK, good to know.
And what about the custodian they use? Should
you be paying attention to that? Definitely.
The guide says to look into the custodial details.
You want to know whether their storage fees are
scaled or flat, how quickly they process orders,
what storage options they offer, how they handle
transfers, what their security protocols are,
and maybe most importantly, how easy it is to
communicate with them if you have questions or
concerns. So clear communication and transparency
are important on all fronts. Absolutely. And
then there's the customer service aspect. The
guide emphasizes that the best companies will
have a really responsive, knowledgeable, and
experienced customer service team. People who
can walk you through the whole process and answer
all your questions. So you don't feel like you're
just dealing with a faceless corporation. Exactly.
And the guide actually names its top three recommended
gold IRE companies. Augusta. Precious Metals,
GoldCo, and American Hartford Gold. They specifically
mentioned that Augusta has zero complaints with
the Better Business Bureau and the Business Consumer
Alliance. Right. They highlight those companies
as good starting points for your research based
on the criteria they've laid out. So there you
have it. Lots to think about. What are the key
takeaways from all this for our listeners who
are considering a Gold IRA as part of their retirement
plan? Well, the guide makes it clear that gold
IRAs are becoming increasingly popular. There's
a growing sense that they offer a way to protect
those hard -earned retirement funds from economic
uncertainty. But, and this is a big but, Choosing
the right company to work with is absolutely
crucial. You've got to do your due diligence
and really research those companies. Because
there are risks. Yeah, definitely. If you end
up with an unreliable company, you could be hit
with high fees, pushy salespeople, problems with
the custodian, poor service, you name it. So
buyer beware. Exactly. But on the flip side,
if you choose wisely, a gold IRA does offer the
potential to protect your savings from some of
those big risks that we all worry about. Market
crashes, currency devaluation, inflation, that
kind of thing. And it all comes back to that
idea of diversification, not having all your
eggs in one basket, right? Yeah, right. Having
a portion of your retirement savings in a tangible
asset like gold that's historically held its
value in tough times, that can provide some real
peace of mind. So for our listeners, as you're
thinking about your own retirement goals and
your risk tolerance, ask yourself, how do the
potential benefits and risks of a gold IRA fit
into your overall financial picture? And we encourage
you to check out the Gold IRA Investing Guide
2025 for more details on those specific companies
and storage options we talked about. It's a great
resource. Knowledge is power, folks. Make those
informed decisions. Thanks for diving in with
us.