If you remember the nineties, you might remember the band Smash Mouth. They were everywhere back then: their songs were on the radio, their music was in every hip teen movie, and they even appeared at Burger King to dish up some flame-broiled burgers to go with their signature Southern California sound.
Their biggest song was titled All Star. In it, the singer seems to be singing to you, the audience member. He’s telling you that you are, in fact, the titular all-star. You might start to feel good – strong, powerful, special. But if you listen closely, the singer gives you a hint that he’s pulling your leg.
“All that glitters is gold,” he says, right before adding, “Only shooting stars break the mold.”
He’s taken a play on a classic phrase and twisted it. You probably have heard it before. All that glitters is not gold is the saying. It means that things are not always what they appear.
In the eighteen hundreds, there was a gold rush in America. It was caused by the migration of Americans across the Western frontier. As more people travelled to the west, they naturally began to uncover the vast stores of natural wealth the earth was keeping.
Sometimes, those seeking to make their fortune in gold were fooled by a metal named pyrite, commonly called fool’s gold. This looks similar to the real deal – close enough that it could easily fool the everyday speculator. But it wasn’t really gold at all.
Those who pulled up stakes and moved across the country could sometimes lose it all on a claim of fool’s gold. Click here for more information about pyrite.
Just like in the eighteen hundreds, those looking to invest in gold have a wide world of options out there. And just like back then, the more knowledge you have going into your investing, the more likely you are to avoid pitfalls.
In this article, we’re going to take a closer look at the new sensation that is the Gold IRA and help you decide if it’s the right plan for you.
What is a Gold IRA?
It’s important to know what a gold IRA is and how it is different from other investment opportunities. We shouldn’t venture on something that we don’t have any clue of where it started or where it came from.
Let’s first take a look at what it isn’t. A gold IRA isn’t just a collection of coins. If you buy a bunch of coins from the Franklin Mint and display them in a prominent place in your home, that’s not a gold IRA. That’s just a nice collection to be proud of that might be worth a substantial value at some point in the future. What’s more, you’ll probably never be able to complete your collection at a flea market. If you’re lucky enough that you find a very rare coin, then you can have it auctioned.
A gold IRA also isn’t a Scrooge McDuck-type vault in your home laden with gold coins and scattered with other precious metals and stones. Again, that’s just a killer collection to be proud of.
An IRA, as you may already know from previous investing experience, is a retirement account. Just like a traditional retirement account, there are rules and stipulations that apply to your gold. Click the link: https://www.usa.gov/retirement to find out more information about retirement accounts.
The first is that your investment is designed to mature in your account. That means that anything invested in your account is set to mature at a certain date. If you choose to withdraw any of your assets early, they could be subject to taxes or penalties.
This could be a good incentive for you if you’re the impatient type. If you’re the type to dig up pumpkin seeds three days after planting them to see what’s going on, you probably need some reason to keep your investments secured. No judgement, just letting you know this is a benefit for you.
The second thing that differentiates this form of investment from the kind mentioned earlier in this section is a custodian. A custodian in this instance is another name for a caretaker. This is a person who watches over your physical investment, AKA, gold. It is kept in a secure facility until it is time to make a withdrawal.
How to Rollover
If you’re interested in this form of investment, there are two ways in which to go about starting one.
If you don’t already have a retirement account, you will be starting from scratch. If that is the case, take the time to congratulate yourself on taking a big step towards securing your future. If you want to celebrate with a specialty ice cream cake, well, no one will blame you for that.
If you already have a retirement account, you may be interested in learning more about a gold IRA rollover to see if it’s the right fit for you.
If you’ve moved jobs before, you might be familiar with how a rollover works. It’s just another name for moving your capital, whether that be in cash assets or precious metals.
A gold IRA rollover works the same way. You would initiate the process by contacting a custodian (remember when we discussed that above?). This custodian will be the one to safely steward your investment. They will secure the purchase of the gold as well as ensure that it is safely housed.
Please take note, if you decide to complete the rollover, you should expect it to take some time. It could take as long as sixty days for the money to appear in your new account.
Embarking on a new adventure is always exciting. A gold IRA offers you the opportunity to experience the adventure of the gold prospectors of the nineteenth century all from the comfort of your own home. Perhaps in this case, just like the Smash Mouth song, all that glitters is gold.