When most people think about an IRA, you think about investing in stocks, mutual funds, ETFs, maybe some bonds or dividend paying stocks. The idea is retirement and many equate retirement with the stock market.
But there are ways that the wealthy are using IRAs that saves them a ton in taxes.
You've probably heard that Peter Thiel used his Roth IRA to buy shares of Palantir when it was still privately held. And now that it's worth billions, after being publicly listed on the New York Stock Exchange, all his gains are tax free.
While you may not have access to buying a billion dollar company, there is something you can buy that can change your retirement – gold bullion. The IRS allows you to buy IRS-approved gold bullion in your IRA as long as you store it in a secured vault.
Gold IRAs have been around for ages, they are completely legal, and the only reason most people don't do it because they don't know about it.
What is a Gold IRA?
It's a type of self-directed IRA that lets you invest in precious metals – gold, silver, platinum, and palladium. The IRS governs what you buy, only certain types of bars and coins, as well as where you store it and how it is managed.
The place you store it is a depository and there is a list of IRS approved depositories. Next, you'll need a qualified custodian too. These all, of course, come with costs so maintaining a Gold IRA is a bit more expensive than owning a low cost index fund, which often charges you pennies.
Why Don't More People Know?
Many of the banks and brokerages you know about don't talk about it because they don't offer it.
It's a bit of a hassle to manage and when you can collect an annual fee doing more of what you offer, such as mutual funds and ETFs, there's little incentive for a brokerage to offer a Gold IRA.
Fortunately, as is the case with any industry, there are smaller firms willing to fill in the gaps.
Companies Offering Gold IRAs
There are several companies offering Gold IRAs and many do require you to open an account with $10,000 to $50,000.
Augusta Precious Metals
Augusta Precious Metals has been operating since 2012 with a solid track record with zero complains in the Better Business Bureau plus an A= rating. Their education director is Harvard-trained economic analyst Devlyn Steele. They allow you to invest in gold and silver with a minimum investment of $50,000.
👉 Get your free Gold IRA guide from Augusta
Birch Gold Group
Birch Gold Group has been around for 20+ years and their Precious Metals IRA lets you invest in gold, silver, platinum, and palladium. The minimum is lower, a mere $10,000, so this is a good option if you have a smaller balance that you want to put into precious metals. They have an A+ rating from the Better Business Bureau and has made a sport of collecting endorsements from many prominent conservative figures.
👉 Get your free gold info kit from Birch Gold
Goldencrest Metals
Goldencrest metals is newer to the Gold and Precious Metals IRA space but they offer a lot of promotions to try to win your business. There is a $25,000 minimum but you get one year of free storage plus 10% rebate on silver purchases. The more you invest, the longer your period of free storage – though I wouldn't let that be your primary driver in making a decision.
