The Ultimate Gold IRA

To understand the answer to this question, we first have to understand the difference between a standard IRA and a self directed IRA. A standard IRA is typically run through a brokerage whose accounting systems and business models are focused almost entirely on stocks, bonds, and related products. Physical gold does not fit into this structure, and thus is not offered with a standard IRA.

A self directed IRA removes the limitation of asset choice. With the investor himself acting as the non-compensated manager, there is obviously no bias towards Wall Street style products. This allows for the possibility of investing in gold. To look at it another way, a self directed IRA does not necessarily give you more investment options; rather, it removes the barriers artificially imposed by the brokerages.

Are there different self-directed IRA platforms that can be used to invest in gold?

Yes. The two different “flavors” of self directed IRA platforms are the Trust model and the Checkbook Control model.

Many of the gold IRAs that are being advertised are based on the Trust model. The reason for this is that the profit margins are potentially much higher. The Trust model allows the company to charge managerial fees, transaction fees, and dictate the source of the gold.

With a self directed IRA based on the Checkbook Control model, there are no managerial or transaction fees, and the investor is free to purchase from the gold dealer of his/her choosing. For investors who want to maximize their retirement funds, Checkbook Control is by far the most robust option.

What kind of gold can a self directed IRA hold as an investment?

A self directed IRA can invest in two types of physical gold: coins or bullion. Each of these products has different rules regulating its placement in a retirement fund. The list of acceptable gold coins includes American Eagles, Canadian Maple Leafs, and Australian Nuggets. Bullion can be place in a self directed IRA if it fulfills two criteria:

• The fineness of the bullion is at least .9950.
• The bullion is fabricated by a COMEX or NYMEX approved refiner.

Learn more about acceptable gold products.

Can I rollover an existing retirement fund into a self directed IRA?

Certainly. Virtually any retirement account can be rolled over into a self directed IRA, and it can be done without any tax penalties or early distribution fees.

What if I decide at a later date to invest in something other than gold?

A self directed IRA gives you continual asset choice. You always have the power to sell your gold holdings, and reinvest the funds in a different asset.