Goldco Review

Goldco Review

Do you worry about how the stock market can affect your retirement account? Do you want to invest in gold without worrying about getting scammed? If the answer to either of these questions is yes, Goldco is a company that was built for you.

Goldco is a reputable company. They are established with the Better Business Bureau and have an A+ rating overall. Consumers note that the customer service staff is consistently respectful and helpful.

What Is Goldco?

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Goldco is a company that helps individuals protect their retirement savings by investing in gold and silver. If you have a retirement account like an IRA, 401(k), or 403(b), you can use the company's resources to roll your account into a Gold and Silver IRA.

Goldco is privately owned and specializes in protecting wealth and assets. The company is known for being dependable, having excellent customer service, and engaging in ethical practices.

In addition, the company allows investors and collectors to purchase coins and precious metals directly.

The firm is staffed by a group of IRA specialists who understand everything you need to know about your retirement savings. They can walk you through the entire process of safeguarding your wealth, so it's a very simple process. You don't need to be an expert in the economy to benefit.

The Purpose of Self-Directed IRAs

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To understand what the company offers, it's important to understand how a self-directed IRA works.

When you save for retirement, you want investments that grow. Most retirement accounts are designed to grow over time. As you put money into the account, that money yields dividends based on a variety of investment opportunities.

Most retirement accounts are built to grow slowly over several decades. But you can lose a lot if the stock market crashes. Even if you don't invest in stocks, other investments may also suffer during a recession.

Some of the most common types of investment people use are:

  • Bonds
  • Stocks
  • CDs
  • Mutual funds

The majority of retirement accounts will have a diverse group of these four investments. It's common to set up an IRA or 401(k), as these retirement programs allow you to invest without needing to be an investment expert.

If you want to have more investment security in the long run, or you want to diversify your portfolio, you might use a self-directed IRA.

By investing in multiple different types of assets, you can keep gaining during difficult economic issues, keep your assets secure when the market is volatile, and minimize your losses. For example, if the stock market takes a turn, only a small portion of your investments will be affected.

Many people are intimidated by the idea of alternative investments. They worry that they need to have a degree or extensive experience in the market. But that isn't true.

You don't need to be older or experienced to invest. You also don't need to be rich. You can start taking advantage of your opportunities as a young person in the workforce.

Self-directed IRA accounts, also known as SDIRAs, let you invest in assets that aren't included in the majority of traditional individual retirement accounts. With a self-directed IRA, a trustee or custodian performs administration duties, but the account holder directly manages the assets.

Some examples of self-directed IRA investments include:

  • Promissory notes
  • Real estate
  • Cryptocurrency
  • Precious metals like gold and silver
  • Oil, gas, water rights, and mineral rights

About Gold IRAs

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One of the main offerings from Goldco is a gold IRA. Gold IRAs allow you to invest in gold. This comes with several advantages regardless of how close you are to retirement. If you're almost a retiree, this account provides security. If you're just starting your career, the account allows opportunities for growth.

There's no need to put your entire retirement savings into the gold IRA. Instead, you can move small pieces of your investments into gold and precious metals.

Gold IRAs come with advantages including:

  • You diversify your investment portfolio, which means you have more stable assets.
  • You have fewer investment risks if the market enters a downturn.
  • You are invested in tangible materials rather than market assurances.
  • You have access to the same tax advantages that you get with a traditional IRA account.

When you're investing, you may ask whether it's better to invest in a self-directed IRA or a 401(k). It's especially common to wonder this after leaving an employer and having assets in your prior retirement plan.

If you've just left an employer, you can move your retirement savings from a 401(k) into an IRA. This gives you the chance to explore self-directed IRA options.

IRA-Eligible Gold

If you invest in a gold IRA, you're investing in precious metals like gold. But there's a difference between IRA-eligible gold and non-eligible gold. It's important to understand the difference so that you invest in legal avenues.

To invest your IRA savings in gold, the materials need to comply with specific IRS standards. The standards help determine how pure and fine the gold bars and coins are. They also address certain rules about storage and account contributions.

Some of the IRS rules regarding gold investments include:

  • The gold must be at least 99.5 percent pure or be rated at a fineness scale of .995.
  • The materials must be stored and maintained by an account custodian.
  • The account holder must comply with standard contribution limits for both traditional and self-directed IRA accounts.
  • You cannot add any gold assets that you already own to the IRA.
  • However, you can add to your existing gold assets by purchasing more gold after you open an IRA.

The IRA Custodian

As mentioned, an IRA account needs a custodian. This person is entrusted with maintaining your investments and ensuring that they are stored safely. They are also responsible for following IRS regulations, which helps you avoid potential tax penalties.

Since the position requires a level of familiarity with IRS standards, the custodian is usually an investment expert. Rather than being an individual, the majority of custodians are corporate firms like banks, brokerage companies, mutual fund companies, and insurance companies.

With that said, most of these entities specialize in traditional IRA accounts. If you invest in gold, it's easier to find a custodian who specializes in precious metal investments. That way, you know they're familiar with the specific IRS guidelines regarding metals.

Your custodian can also help you decide which investments to make. They'll advise you about whether or not certain investments are compliant with IRS regulations. This is especially important if you're rolling over your 401(k) savings into a gold IRA account.

Additional IRS Rules for IRAs

On top of regulating investments in precious metals, the IRS has a variety of guidelines regarding IRA accounts. These include contribution limits, rules about withdrawals, and minimum distribution amounts.

Some limits have been adjusted or waived for 2020 due to the coronavirus pandemic. You can check to see whether you qualify.

If you invest in a gold IRA, it's important to comply with established contribution limits. You need to follow the guidelines to avoid being penalized. You'll need to take special care if you're turning your 401(k) into gold investments, or if you're making other large contributions.

These are some of the key IRS guidelines for IRA accounts:

  • You can only contribute 6,000 dollars per year, or 7,000 for those older than 50.
  • For people with multiple IRA accounts, you cannot invest more than 6,000 dollars total. This includes investments in every IRA account you have.
  • Contributions are calculated based on each person, rather than each account. This means that you can make multiple contributions to different accounts per year, as long as you don't cross the 6,000 dollar mark.
  • People over the age of 50 can make additional contributions. As a general rule, you will not be able to invest more than 7,000 dollars per year. There may be exceptions for 2020 due to the extreme circumstances of the coronavirus pandemic.

Putting Physical Gold Assets in Your IRA

You understand why a gold IRA is important and how the process works. But how do you actually invest?

First, you'll need to decide how to set up your self-directed IRA account. The most common option is a traditional gold IRA. This allows you to move funds from an existing 401(k) or other retirement accounts. It also lets you invest your pre-tax income.

If you're moving funds from Roth IRA accounts, you'll need a Roth IRA instead of a traditional one. Roth IRAs are also ideal for anyone who needs to do a Roth conversion. If you're not sure what this means, though, a traditional account will work best for you.

The next step is to decide how you're funding the account. Maybe you'll use cash to make your investments, using a portion of your paycheck or money from your savings account. Maybe you'll move funds from another retirement account like an existing IRA or 401(k).

Talk to your tax advisor before you move your funds. They can tell you whether the action will affect your tax obligations. They can also make sure that your existing accounts are set up to allow transfers of funds.

Once you've done this, you can choose a qualified custodian. Goldco employs experts in precious metal investing. They're a good option for an IRA account custodian because they offer helpful information and excellent customer service.

You'll work with the custodian to fund the account. It's important that your custodian has tax expertise and understands retirement account regulations, as it's vital that your funding is compliant with IRS regulations.

After all of this has been taken care of, you can choose the metals you're investing in. You might select gold bars or gold coins. As long as they're compliant with IRS regulations, you can use them.

Some items that are not eligible include certain collectibles:

  • Artwork
  • Antiques
  • Stamps
  • Some coins

Gold coins that meet IRS purification standards are an exception, however.

It's best to pick dealers who have a minimum of five years experience in the industry. This helps to safeguard against counterfeit products. You can receive confirmation that your coins are legit from the place they were minted, since all mints keep records.

Your custodian may also be able to help you with the investment process. Goldco advisors work with reputable metals dealers regularly, and they know how to narrow down regulation-compliant metals.

Retirement Planning Resources

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Goldco provides a variety of different retirement planning resources to help people safeguard their assets. They explain the difference between retirement accounts, how investing works, and how to make the right choices for your future.

The company has information about the value of retirement accounts including:

  • 401(k) plans
  • IRA accounts
  • SEP IRAs
  • SIMPLE IRAs
  • Self-directed IRAs

They also have multiple free e-books available. These teach people about the value of gold IRA investment, the biggest investment mistakes to avoid, the biggest concerns when investing in an IRA, and comprehensive guides for retirees to make the most out of their investments.

Regardless of your age or level of financial expertise, you can make use of the resources provided.

401(k) Plans

401(k) Plans

Goldco has ways to move a 401(k) plan into a gold IRA account without suffering penalties. Many people open 401(k) accounts with their employers. When you leave that employer, you might consider reinvesting the money. A gold IRA is a perfect way to do that.

401(k) plans are set up so that you can create tax-deferred contributions to your retirement savings. You don't have to worry about the contribution being taxed until you are given a distribution.

The IRS provides these guidelines for 401(k) management:

  • If you elect to have investments taken out of your salary, they will be removed from your total taxable income. The exception is with certain Roth IRA deferrals.
  • An employer can match their employee's contributions to contribute to their retirement account.
  • Once you retire, your distributions and earnings are part of your taxable income each year, so you will need to pay taxes to the IRS.

If your employer offers a matching plan, this allows you to double the amount you save with every paycheck. It's free money for your future self.

Keep in mind that you will need to pay fees to whoever manages your account even if you don't make contributions. Because of this, it's important to contribute regularly. Otherwise, you might end up losing significant money as the fees add up.

You can avoid incurring fees when not contributing by moving the 401(k) funds to an IRA account. This gives you a much broader range of investment options.

401(k) plans are similar to IRAs in that they have minimum distributions. Once you reach the age of 72, you must remove a certain minimum amount from the account. This has been waived for 2020 due to the coronavirus pandemic.

But understanding minimum distributions is important for future years, as failing to meet them can cause penalties.

Some of the benefits of a 401(k) include:

  • Employees have an easier time saving money since their contributions are automatically moved from their paychecks to their accounts.
  • If an employer matches the contributions, you have a better cushion when you retire.
  • You do not have to pay taxes on the contributions until you begin taking money out of the account in retirement.
  • It's possible to borrow money from the account if you have unexpected emergencies like potential eviction, funeral costs, or medical expenses.

A gold IRA account also has all of these benefits, plus it has the security of tying your investments to precious metals.

You can create a rollover IRA account by moving the funds from a 401(k) into an individual retirement account. IRA accounts are different from 401(k) plans because they are opened by individuals rather than being managed through employer plans.

Penalties for Not Following Regulations

If you don't comply with the regulations regarding retirement accounts, the IRS may create certain penalties. Some of these include:

  • If you contribute too much to your account, you will be penalized six percent of your excess. That six percent continues every year until you correct your mistake.
  • You cannot invest in collectible items like artwork and antiques. If you do, you may incur tax penalties. This rule doesn't apply if you invest in precious metals that are qualified through IRS regulations.
  • If you withdraw your distributions before you're 59 and a half years old, you will need to pay income tax and a ten percent penalty. There are exceptions if the individual becomes disabled or dies, needs to pay certain qualifying medical expenses, needs to pay for university, or is purchasing a home for the first time.

On top of this, there were new regulations for 2020 due to the coronavirus pandemic. If you, your spouse, or a dependent person receive a COVID-19 diagnosis, you can withdraw a maximum of 100,000 dollars early without being penalized.

You can also take advantage of this if you lost your job due to COVID-19, you need to pay for childcare, or you experience economic hardship because your hours are reduced.

Goldco helps people to turn their 401(k) accounts and IRA accounts into gold investments by following these steps:

  • They help you look at your existing investment options.
  • They walk you through the necessary paperwork to open a gold IRA account that complies with IRS regulations.
  • They offer advice for how to transfer the funds from your existing retirement account into the new account without violating any IRS guidelines.
  • They help you decide what metals to invest the funds in.
  • They maintain your account and make sure that your investments are properly stored and secure.

Final Thoughts

Goldco is a great company if you want to change your retirement investment setup, or if you want to start investing in your retirement for the first time.

The company employs precious metals experts who understand IRS regulations. They also have a strong background in different retirement accounts. You don't need to be an expert yourself, because the team of qualified professionals can walk you through everything.

They'll show you your investment options. Then they'll walk you through the paperwork and help you contribute to your account in a way that's compliant with IRS regulations. Their expertise is invaluable in helping you avoid potential penalties.

As time goes on, they'll maintain your gold IRA account. They'll also apprise you of other investment opportunities and let you know when the value of the metals has grown.

Precious metals are a helpful investment because they are always valuable. They provide much-needed security for a retirement plan. If you're close to retirement, this account protects your assets from the whims of the stock market. If you're just starting out, the account has enormous room for economic growth.

If you've been thinking about diversifying your retirement plan, this company is a good place to start. The same is true if you've been anxious about traditional market investments, especially since the stock market can be turbulent right now.

You can download Goldco's e-books and guides free of charge. These teach you everything you need to know about different retirement accounts, how investing works, and how to manage your assets as a retiree. They also teach you important information about IRS regulations.