Welcome to the Deep Dive. Today we're tackling
something pretty intriguing for anyone planning
their financial future. How you might be able
to invest in gold, but without actually using
new savings or investment capital. Right. And
we're drawing on some interesting points from
an article by Doug Young. He's an expert in financial
investing. And his piece asks, can you invest
in gold with no money down? Yeah. That title
definitely catches the eye. It does. And what's
really useful about Young's article is how it
addresses a big hurdle for lots of people just
finding the spare cash to invest. Exactly. He
looks at ways you could potentially use the money
you already have tucked away in retirement accounts.
So our mission today for you listening is really
to unpack that. How can you leverage those existing
retirement funds to maybe add gold to your portfolio?
That's the plan. OK, so let's get straight to
the main idea then. The basic strategy here,
like Doug Young lays out, it centers on using
assets you already have in retirement accounts.
Precisely. So if you've got funds sitting in,
say, an old 401k or a traditional IRA, the concept
is you might be able to move some or even all
of that money into gold investments instead.
OK. And the big appeal there for you, the listener,
is what exactly? Well, it's the chance to get
the kind of diversification gold might offer
plus its history as, you know, a store of value.
Right. But without needing to find new money
or impacting your current budget, you're basically
just shifting assets already earmarked for the
long haul. And Young mentions you could do a
partial rollover or a full one. That's usually
the case, yes. Yeah. You often have flexibility
there. So this leads us to the term gold IRA.
I've heard this mentioned. What is that really?
How is it different from my regular IRA? Good
question. Think of a gold IRA as a specific type
of individual retirement account. The main difference
is what's inside it. OK. Instead of holding mostly
paper assets, stocks, bonds, mutual funds, that
sort of thing, a gold IRA is specifically designed
to hold actual physical gold and often other
precious metals, too, like silver, platinum,
palladium. So it's still an IRA with the tax
advantages potentially, but holding physical
metal. Exactly that. The underlying assets are
tangible precious metals, not just numbers on
a screen. So the big draw, as the article seems
to suggest, is you get to invest in physical
gold, which some people see as a hedge against
inflation or market wobble. That's a common motivation.
And you can use those retirement funds you already
have, keeping the tax benefits. That's the core
idea. It lets you diversify away from just stocks
and bonds, maybe adding a layer of protection
during shaky economic times. And doing it without
needing fresh capital is, well, Pretty appealing
for a lot of folks, I imagine. It definitely
lowers a barrier to entry for gold investing.
All right. Let's get down to the practical side,
then. The brass tacks. Yeah. How does someone
actually do this? What are the steps to roll
over funds into one of these gold IRAs? OK, so
Doug Young breaks it down into roughly five key
steps. Step one, and this is crucial, is contacting
your current retirement fund provider. The one
holding the money now? Yes. You need to ask them,
first, are rollovers into a gold IRA even allowed
from your specific account? It's not always possible.
Yeah, okay. Eligibility check first. Right. And
if it is, you tell them what you want to do and
get the ball rolling on their end, paperwork,
procedures, all that. Got it. Then step two sounds
critical. Choosing the gold IRA company itself.
What should you look for there? Young really
emphasizes picking a reputable company. This
means doing your homework. Like checking reviews
and things. Definitely. Look at their track record.
How long have they been doing this? What are
customers saying in reviews? And very importantly,
understand their fees. Are they transparent?
Makes sense. These companies sort of guide you
through it. Through your main point of contact
for setting up and managing the gold IRA, yes.
So choosing the right partner is key. Okay. Provider
checked. Company chosen. What's next? Step three.
Step three is formally opening the gold IRA account
with that company you picked. It's pretty standard
stuff. Application forms, providing ID, like
opening any bank account, really. Then comes
step four, which is the actual money transfer.
This usually happens as a direct rollover. meaning
the money goes straight from your old custodian
or trustee to the new gold IRA custodian. You
don't touch the money yourself. Ah, and that's
important for tax reasons. Extremely important.
Taking possession of the funds yourself even
briefly can trigger taxes and penalties. Direct
trustee to trustee transfer avoids that. Okay,
direct rollover. Got it. And the final step,
step five, that's the fun part, buying the gold.
That's when you actually select the metals. Yes.
Once the funds land in your new gold IRA, you
work with the gold IRA company to choose the
specific IRS approved gold products you want.
IRS approved. So there are rules about what kind
of gold you can hold. Oh, absolutely. And that
brings us to the IRS regulations, which are vital
to understand if you want to keep those tax advantages.
Right. What are some of the main rules we need
to know? Well, a big one is the purity requirement
for the metals. For gold, the IRS insists on
a minimum purity of 99 .5%. 99 .5%. Right. Young
mentions common examples that qualify, like American
gold eagles, even though they are 22 carat. They
contain the required amount of pure gold and
Canadian gold maple leaves, which are 99 .99
% pure. Also, gold bars from approved refiners.
So you can't just, like, throw your grandma's
old jewelry in there. Definitely not. It has
to meet the standard. And it's similar for other
metals. Young Note Silver needs to be 99 .9 %
pure, Platinum 99 .95%, and Palladium also 99
.95%. OK, purity standards. What else? Another
huge rule. where the metal is stored. You absolutely
cannot store your IRA's precious metals at home
or in your personal safe deposit box. Really?
Where do they go then? They must be held in an
IRS approved depository. This is a secure third
-party storage facility. Your gold IRA custodian
arranges this. So the custodian and the depository
are key parts of this whole setup to stay compliant?
Essential. working with a good gold IRA company,
ensure that these rules are followed correctly.
Got it. Purity, storage. What about the taxes
themselves? How does a gold IRA work tax -wise?
Is it like a regular IRA? Largely, yes. The growth
within the gold IRA is typically tax -deferred.
So, if the value of your gold goes up, you don't
pay taxes on those gains year after year. Only
when you take the money out in retirement. Correct.
Taxes are generally paid upon withdrawal during
retirement, but... Like traditional IRAs, there's
a catch for taking money out early. The early
withdrawal penalty. Exactly. Withdrawals before
age 59 and a half usually face a 10 % penalty
on top of regular income tax. So it's definitely
meant for long -term retirement savings. Okay,
and those required minimum distributions, RMDs,
they apply too. Yes, they do. Yeah. Starting
at age 73, you'll need to start taking RMDs.
Your custodian should help you figure out those
amounts each year. Right. Now Doug Young, in
his article, he actually names some names, doesn't
he? He mentions his three best gold IRA companies.
We should stress this is his take from the article.
Yes, absolutely. It's based on his research as
presented in the piece. He lists Augusta Precious
Metals as one. And he highlights the record.
Apparently zero complaints filed with the Better
Business Bureau or the Business Consumer Alliance,
which is quite something. Wow, okay. Who else?
His second mention is GoldCo, and he points to
their high customer satisfaction rates. And third,
he names American Hartford Gold, calling them
the best newcomer in the space. And he even points
to a comparison article for those wanting more
detail. Yeah, he mentions an article comparing
Augusta Gold Co. and American Hartford Gold directly.
So that resource is out there for listeners who
want to dig deeper into those specific companies.
Good to know. And just briefly, did the article
touch on what analysts think about Gold's future,
say, for 2025? He did mention it, yeah. Young
notes that according to his sources, top analysts
are generally bullish, meaning optimistic about
Gold's prospects. for 2025. No specifics on why,
just a general positive vibe. Pretty much. Just
indicates a positive sentiment from analysts
looking ahead to next year. Okay. And just so
we have the context, who is this Doug Young again?
What's his background? Well, the article describes
him as having over 20 years in the financial
world, investing, commodity trading, precious
metals specifically. So quite experienced. Seems
so. He's presented as a trusted voice, and importantly,
says he has over a decade's experience actually
evaluating gold IRA companies. So he's been looking
at this specific market for a while. Right. So
he spent time comparing these providers. That's
the picture painted in the article, yes. OK,
so wrapping this up. Based on what we've discussed
from Doug Young's perspective, it really does
seem possible, then. Investing in gold without
digging into your current spending money. by
using a rollover into a gold IRA. That's the
main takeaway. The mechanism exists. But, and
it's a big but that Young stresses too, you have
to be careful. Darkful how? Understanding those
IRS rules is non -negotiable. Purity, storage,
the rollover process. Right. And choosing a trustworthy,
knowledgeable gold IRA company to guide you is
just essential to make sure it's all done correctly
and compliantly. Absolutely. So the final thought
for you, our listener, might be this. Considering
gold's potential for stability or growth in a
retirement plan and this idea of using funds
you already have set aside, what's maybe the
very first small step you could take? Just to
see if a gold IRA might even fit with your own
financial picture. Mm -hmm. Something to think
about. Definitely food for thought. Thanks for
joining us on this deep dive.