WEBVTT 00:00:00.000 --> 00:00:03.120 Welcome to the Deep Dive. Today we're tackling 00:00:03.120 --> 00:00:06.360 something pretty intriguing for anyone planning 00:00:06.360 --> 00:00:09.140 their financial future. How you might be able 00:00:09.140 --> 00:00:11.919 to invest in gold, but without actually using 00:00:11.919 --> 00:00:15.119 new savings or investment capital. Right. And 00:00:15.119 --> 00:00:16.640 we're drawing on some interesting points from 00:00:16.640 --> 00:00:19.140 an article by Doug Young. He's an expert in financial 00:00:19.140 --> 00:00:22.219 investing. And his piece asks, can you invest 00:00:22.219 --> 00:00:25.260 in gold with no money down? Yeah. That title 00:00:25.260 --> 00:00:27.320 definitely catches the eye. It does. And what's 00:00:27.320 --> 00:00:29.140 really useful about Young's article is how it 00:00:29.140 --> 00:00:32.039 addresses a big hurdle for lots of people just 00:00:32.039 --> 00:00:34.640 finding the spare cash to invest. Exactly. He 00:00:34.640 --> 00:00:37.939 looks at ways you could potentially use the money 00:00:37.939 --> 00:00:40.119 you already have tucked away in retirement accounts. 00:00:40.600 --> 00:00:42.759 So our mission today for you listening is really 00:00:42.759 --> 00:00:45.359 to unpack that. How can you leverage those existing 00:00:45.359 --> 00:00:48.520 retirement funds to maybe add gold to your portfolio? 00:00:48.920 --> 00:00:51.750 That's the plan. OK, so let's get straight to 00:00:51.750 --> 00:00:54.090 the main idea then. The basic strategy here, 00:00:54.229 --> 00:00:56.549 like Doug Young lays out, it centers on using 00:00:56.549 --> 00:00:58.630 assets you already have in retirement accounts. 00:00:58.929 --> 00:01:00.450 Precisely. So if you've got funds sitting in, 00:01:00.450 --> 00:01:04.849 say, an old 401k or a traditional IRA, the concept 00:01:04.849 --> 00:01:07.930 is you might be able to move some or even all 00:01:07.930 --> 00:01:10.430 of that money into gold investments instead. 00:01:10.650 --> 00:01:13.750 OK. And the big appeal there for you, the listener, 00:01:14.010 --> 00:01:16.109 is what exactly? Well, it's the chance to get 00:01:16.109 --> 00:01:17.969 the kind of diversification gold might offer 00:01:17.969 --> 00:01:20.730 plus its history as, you know, a store of value. 00:01:20.810 --> 00:01:23.909 Right. But without needing to find new money 00:01:23.909 --> 00:01:26.569 or impacting your current budget, you're basically 00:01:26.569 --> 00:01:29.090 just shifting assets already earmarked for the 00:01:29.090 --> 00:01:31.040 long haul. And Young mentions you could do a 00:01:31.040 --> 00:01:33.379 partial rollover or a full one. That's usually 00:01:33.379 --> 00:01:35.579 the case, yes. Yeah. You often have flexibility 00:01:35.579 --> 00:01:38.480 there. So this leads us to the term gold IRA. 00:01:38.799 --> 00:01:41.079 I've heard this mentioned. What is that really? 00:01:41.299 --> 00:01:43.879 How is it different from my regular IRA? Good 00:01:43.879 --> 00:01:47.680 question. Think of a gold IRA as a specific type 00:01:47.680 --> 00:01:50.519 of individual retirement account. The main difference 00:01:50.519 --> 00:01:53.370 is what's inside it. OK. Instead of holding mostly 00:01:53.370 --> 00:01:55.829 paper assets, stocks, bonds, mutual funds, that 00:01:55.829 --> 00:01:58.689 sort of thing, a gold IRA is specifically designed 00:01:58.689 --> 00:02:02.689 to hold actual physical gold and often other 00:02:02.689 --> 00:02:04.769 precious metals, too, like silver, platinum, 00:02:05.030 --> 00:02:07.909 palladium. So it's still an IRA with the tax 00:02:07.909 --> 00:02:10.430 advantages potentially, but holding physical 00:02:10.430 --> 00:02:13.150 metal. Exactly that. The underlying assets are 00:02:13.150 --> 00:02:15.650 tangible precious metals, not just numbers on 00:02:15.650 --> 00:02:18.599 a screen. So the big draw, as the article seems 00:02:18.599 --> 00:02:21.599 to suggest, is you get to invest in physical 00:02:21.599 --> 00:02:24.699 gold, which some people see as a hedge against 00:02:24.699 --> 00:02:28.639 inflation or market wobble. That's a common motivation. 00:02:28.939 --> 00:02:31.280 And you can use those retirement funds you already 00:02:31.280 --> 00:02:34.020 have, keeping the tax benefits. That's the core 00:02:34.020 --> 00:02:37.539 idea. It lets you diversify away from just stocks 00:02:37.539 --> 00:02:40.280 and bonds, maybe adding a layer of protection 00:02:40.280 --> 00:02:43.360 during shaky economic times. And doing it without 00:02:43.360 --> 00:02:46.430 needing fresh capital is, well, Pretty appealing 00:02:46.430 --> 00:02:48.490 for a lot of folks, I imagine. It definitely 00:02:48.490 --> 00:02:50.569 lowers a barrier to entry for gold investing. 00:02:50.930 --> 00:02:52.389 All right. Let's get down to the practical side, 00:02:52.509 --> 00:02:54.750 then. The brass tacks. Yeah. How does someone 00:02:54.750 --> 00:02:57.050 actually do this? What are the steps to roll 00:02:57.050 --> 00:02:59.870 over funds into one of these gold IRAs? OK, so 00:02:59.870 --> 00:03:02.270 Doug Young breaks it down into roughly five key 00:03:02.270 --> 00:03:05.870 steps. Step one, and this is crucial, is contacting 00:03:05.870 --> 00:03:08.409 your current retirement fund provider. The one 00:03:08.409 --> 00:03:11.550 holding the money now? Yes. You need to ask them, 00:03:11.710 --> 00:03:14.830 first, are rollovers into a gold IRA even allowed 00:03:14.830 --> 00:03:17.590 from your specific account? It's not always possible. 00:03:18.129 --> 00:03:21.189 Yeah, okay. Eligibility check first. Right. And 00:03:21.189 --> 00:03:23.129 if it is, you tell them what you want to do and 00:03:23.129 --> 00:03:25.389 get the ball rolling on their end, paperwork, 00:03:25.530 --> 00:03:29.789 procedures, all that. Got it. Then step two sounds 00:03:29.789 --> 00:03:33.090 critical. Choosing the gold IRA company itself. 00:03:33.889 --> 00:03:36.349 What should you look for there? Young really 00:03:36.349 --> 00:03:38.659 emphasizes picking a reputable company. This 00:03:38.659 --> 00:03:41.500 means doing your homework. Like checking reviews 00:03:41.500 --> 00:03:43.860 and things. Definitely. Look at their track record. 00:03:43.919 --> 00:03:45.639 How long have they been doing this? What are 00:03:45.639 --> 00:03:48.659 customers saying in reviews? And very importantly, 00:03:48.919 --> 00:03:51.259 understand their fees. Are they transparent? 00:03:51.439 --> 00:03:53.379 Makes sense. These companies sort of guide you 00:03:53.379 --> 00:03:55.120 through it. Through your main point of contact 00:03:55.120 --> 00:03:57.120 for setting up and managing the gold IRA, yes. 00:03:57.599 --> 00:04:00.180 So choosing the right partner is key. Okay. Provider 00:04:00.180 --> 00:04:03.740 checked. Company chosen. What's next? Step three. 00:04:03.840 --> 00:04:06.240 Step three is formally opening the gold IRA account 00:04:06.240 --> 00:04:08.259 with that company you picked. It's pretty standard 00:04:08.259 --> 00:04:11.740 stuff. Application forms, providing ID, like 00:04:11.740 --> 00:04:14.039 opening any bank account, really. Then comes 00:04:14.039 --> 00:04:16.959 step four, which is the actual money transfer. 00:04:17.680 --> 00:04:20.870 This usually happens as a direct rollover. meaning 00:04:20.870 --> 00:04:23.170 the money goes straight from your old custodian 00:04:23.170 --> 00:04:26.410 or trustee to the new gold IRA custodian. You 00:04:26.410 --> 00:04:28.949 don't touch the money yourself. Ah, and that's 00:04:28.949 --> 00:04:31.290 important for tax reasons. Extremely important. 00:04:31.610 --> 00:04:34.069 Taking possession of the funds yourself even 00:04:34.069 --> 00:04:37.410 briefly can trigger taxes and penalties. Direct 00:04:37.410 --> 00:04:40.089 trustee to trustee transfer avoids that. Okay, 00:04:40.370 --> 00:04:42.910 direct rollover. Got it. And the final step, 00:04:43.069 --> 00:04:45.689 step five, that's the fun part, buying the gold. 00:04:45.920 --> 00:04:48.079 That's when you actually select the metals. Yes. 00:04:48.379 --> 00:04:51.220 Once the funds land in your new gold IRA, you 00:04:51.220 --> 00:04:53.480 work with the gold IRA company to choose the 00:04:53.480 --> 00:04:55.839 specific IRS approved gold products you want. 00:04:56.259 --> 00:04:58.360 IRS approved. So there are rules about what kind 00:04:58.360 --> 00:05:00.620 of gold you can hold. Oh, absolutely. And that 00:05:00.620 --> 00:05:03.240 brings us to the IRS regulations, which are vital 00:05:03.240 --> 00:05:05.420 to understand if you want to keep those tax advantages. 00:05:05.759 --> 00:05:07.579 Right. What are some of the main rules we need 00:05:07.579 --> 00:05:09.600 to know? Well, a big one is the purity requirement 00:05:09.600 --> 00:05:12.300 for the metals. For gold, the IRS insists on 00:05:12.300 --> 00:05:16.800 a minimum purity of 99 .5%. 99 .5%. Right. Young 00:05:16.800 --> 00:05:19.639 mentions common examples that qualify, like American 00:05:19.639 --> 00:05:22.240 gold eagles, even though they are 22 carat. They 00:05:22.240 --> 00:05:24.360 contain the required amount of pure gold and 00:05:24.360 --> 00:05:27.439 Canadian gold maple leaves, which are 99 .99 00:05:27.439 --> 00:05:30.970 % pure. Also, gold bars from approved refiners. 00:05:31.089 --> 00:05:33.149 So you can't just, like, throw your grandma's 00:05:33.149 --> 00:05:35.649 old jewelry in there. Definitely not. It has 00:05:35.649 --> 00:05:37.949 to meet the standard. And it's similar for other 00:05:37.949 --> 00:05:41.110 metals. Young Note Silver needs to be 99 .9 % 00:05:41.110 --> 00:05:45.649 pure, Platinum 99 .95%, and Palladium also 99 00:05:45.649 --> 00:05:48.509 .95%. OK, purity standards. What else? Another 00:05:48.509 --> 00:05:51.689 huge rule. where the metal is stored. You absolutely 00:05:51.689 --> 00:05:53.910 cannot store your IRA's precious metals at home 00:05:53.910 --> 00:05:56.529 or in your personal safe deposit box. Really? 00:05:56.709 --> 00:05:58.709 Where do they go then? They must be held in an 00:05:58.709 --> 00:06:01.230 IRS approved depository. This is a secure third 00:06:01.230 --> 00:06:03.949 -party storage facility. Your gold IRA custodian 00:06:03.949 --> 00:06:06.290 arranges this. So the custodian and the depository 00:06:06.290 --> 00:06:08.730 are key parts of this whole setup to stay compliant? 00:06:08.990 --> 00:06:11.350 Essential. working with a good gold IRA company, 00:06:11.529 --> 00:06:13.009 ensure that these rules are followed correctly. 00:06:13.110 --> 00:06:15.430 Got it. Purity, storage. What about the taxes 00:06:15.430 --> 00:06:18.029 themselves? How does a gold IRA work tax -wise? 00:06:18.250 --> 00:06:22.269 Is it like a regular IRA? Largely, yes. The growth 00:06:22.269 --> 00:06:24.930 within the gold IRA is typically tax -deferred. 00:06:25.069 --> 00:06:28.569 So, if the value of your gold goes up, you don't 00:06:28.569 --> 00:06:31.069 pay taxes on those gains year after year. Only 00:06:31.069 --> 00:06:33.449 when you take the money out in retirement. Correct. 00:06:33.790 --> 00:06:36.230 Taxes are generally paid upon withdrawal during 00:06:36.230 --> 00:06:39.610 retirement, but... Like traditional IRAs, there's 00:06:39.610 --> 00:06:42.370 a catch for taking money out early. The early 00:06:42.370 --> 00:06:44.930 withdrawal penalty. Exactly. Withdrawals before 00:06:44.930 --> 00:06:48.189 age 59 and a half usually face a 10 % penalty 00:06:48.189 --> 00:06:50.569 on top of regular income tax. So it's definitely 00:06:50.569 --> 00:06:52.610 meant for long -term retirement savings. Okay, 00:06:52.750 --> 00:06:55.829 and those required minimum distributions, RMDs, 00:06:55.850 --> 00:06:58.050 they apply too. Yes, they do. Yeah. Starting 00:06:58.050 --> 00:07:01.149 at age 73, you'll need to start taking RMDs. 00:07:01.310 --> 00:07:03.069 Your custodian should help you figure out those 00:07:03.069 --> 00:07:05.509 amounts each year. Right. Now Doug Young, in 00:07:05.509 --> 00:07:07.370 his article, he actually names some names, doesn't 00:07:07.370 --> 00:07:10.290 he? He mentions his three best gold IRA companies. 00:07:10.629 --> 00:07:12.670 We should stress this is his take from the article. 00:07:12.949 --> 00:07:15.250 Yes, absolutely. It's based on his research as 00:07:15.250 --> 00:07:17.529 presented in the piece. He lists Augusta Precious 00:07:17.529 --> 00:07:20.389 Metals as one. And he highlights the record. 00:07:21.169 --> 00:07:23.750 Apparently zero complaints filed with the Better 00:07:23.750 --> 00:07:26.350 Business Bureau or the Business Consumer Alliance, 00:07:26.529 --> 00:07:29.850 which is quite something. Wow, okay. Who else? 00:07:30.009 --> 00:07:32.889 His second mention is GoldCo, and he points to 00:07:32.889 --> 00:07:36.050 their high customer satisfaction rates. And third, 00:07:36.470 --> 00:07:38.709 he names American Hartford Gold, calling them 00:07:38.709 --> 00:07:41.949 the best newcomer in the space. And he even points 00:07:41.949 --> 00:07:43.990 to a comparison article for those wanting more 00:07:43.990 --> 00:07:46.250 detail. Yeah, he mentions an article comparing 00:07:46.250 --> 00:07:49.910 Augusta Gold Co. and American Hartford Gold directly. 00:07:50.509 --> 00:07:52.670 So that resource is out there for listeners who 00:07:52.670 --> 00:07:54.889 want to dig deeper into those specific companies. 00:07:54.990 --> 00:07:58.009 Good to know. And just briefly, did the article 00:07:58.009 --> 00:08:01.350 touch on what analysts think about Gold's future, 00:08:01.350 --> 00:08:04.889 say, for 2025? He did mention it, yeah. Young 00:08:04.889 --> 00:08:06.990 notes that according to his sources, top analysts 00:08:06.990 --> 00:08:09.209 are generally bullish, meaning optimistic about 00:08:09.209 --> 00:08:12.199 Gold's prospects. for 2025. No specifics on why, 00:08:12.319 --> 00:08:14.699 just a general positive vibe. Pretty much. Just 00:08:14.699 --> 00:08:16.720 indicates a positive sentiment from analysts 00:08:16.720 --> 00:08:18.879 looking ahead to next year. Okay. And just so 00:08:18.879 --> 00:08:20.899 we have the context, who is this Doug Young again? 00:08:21.060 --> 00:08:23.779 What's his background? Well, the article describes 00:08:23.779 --> 00:08:26.279 him as having over 20 years in the financial 00:08:26.279 --> 00:08:29.620 world, investing, commodity trading, precious 00:08:29.620 --> 00:08:32.620 metals specifically. So quite experienced. Seems 00:08:32.620 --> 00:08:35.500 so. He's presented as a trusted voice, and importantly, 00:08:35.919 --> 00:08:38.100 says he has over a decade's experience actually 00:08:38.100 --> 00:08:41.220 evaluating gold IRA companies. So he's been looking 00:08:41.220 --> 00:08:43.559 at this specific market for a while. Right. So 00:08:43.559 --> 00:08:46.240 he spent time comparing these providers. That's 00:08:46.240 --> 00:08:48.059 the picture painted in the article, yes. OK, 00:08:48.139 --> 00:08:51.080 so wrapping this up. Based on what we've discussed 00:08:51.080 --> 00:08:53.240 from Doug Young's perspective, it really does 00:08:53.240 --> 00:08:56.600 seem possible, then. Investing in gold without 00:08:56.600 --> 00:08:58.659 digging into your current spending money. by 00:08:58.659 --> 00:09:02.080 using a rollover into a gold IRA. That's the 00:09:02.080 --> 00:09:05.679 main takeaway. The mechanism exists. But, and 00:09:05.679 --> 00:09:07.820 it's a big but that Young stresses too, you have 00:09:07.820 --> 00:09:09.860 to be careful. Darkful how? Understanding those 00:09:09.860 --> 00:09:13.480 IRS rules is non -negotiable. Purity, storage, 00:09:13.940 --> 00:09:17.220 the rollover process. Right. And choosing a trustworthy, 00:09:17.580 --> 00:09:20.100 knowledgeable gold IRA company to guide you is 00:09:20.100 --> 00:09:22.279 just essential to make sure it's all done correctly 00:09:22.279 --> 00:09:25.220 and compliantly. Absolutely. So the final thought 00:09:25.220 --> 00:09:28.989 for you, our listener, might be this. Considering 00:09:28.989 --> 00:09:31.230 gold's potential for stability or growth in a 00:09:31.230 --> 00:09:34.009 retirement plan and this idea of using funds 00:09:34.009 --> 00:09:37.049 you already have set aside, what's maybe the 00:09:37.049 --> 00:09:39.470 very first small step you could take? Just to 00:09:39.470 --> 00:09:41.450 see if a gold IRA might even fit with your own 00:09:41.450 --> 00:09:43.590 financial picture. Mm -hmm. Something to think 00:09:43.590 --> 00:09:45.610 about. Definitely food for thought. Thanks for 00:09:45.610 --> 00:09:46.710 joining us on this deep dive.