Is a Gold IRA a Good Idea?

If you’ve started working on your retirement savings recently, you may have heard about precious metals and their advantages. The older you get, the more important it is to get a great portfolio that can fight the volatility of the stock market and inflation, and precious metals are among the best assets you can get for your retirement accounts.

Now, is a precious metal IRA a good idea? There are many factors you consider before you to add gold in IRA and start buying your favorite coins or bars.

Today, we’ll address the question: “How safe is a gold IRA?” and “Is a gold IRA a good idea?” Knowing the answer to these questions will help you make the best decision for your future and your family’s.

If you want the best advice possible about gold and other precious metals, consider talking to a financial advisor. These professionals will review your case and suggest the best course of action according to your needs and budget.

Are Gold IRAs Safe?

Generally speaking, opening a gold IRA account is one of the safest options for those who want to protect their portfolio for the future. There are many options to invest in gold other than IRAs, though, which include:

  • Mutual funds
  • Exchange-traded funds
  • Gold futures
  • Physical gold stored at home

However, if you want a straightforward approach to gold bars or other precious metals assets, then opening a self-directed IRA will be among the top options to consider.

Opening a traditional gold IRA will also allow you to invest in other assets, including art and real estate, so you can rest assured you’ll be able to diversify your portfolio fast.

Is a gold IRA a good idea, though? If you want to protect your assets and don’t mind the lower returns, then yes. These assets are meant to offer balance and stability to your portfolio, but we don’t recommend that you make your entire portfolio gold coins or other related assets, especially if you want to get higher returns in the future.

Investing in a gold IRA isn’t hard, but it’s not a decision you should take lightly. If you’re interested in opening a gold IRA account, make sure to talk to an advisor and go over all your options. Overall, a precious metals IRA is a good idea, and if you go through the process correctly, you’ll see many benefits for your future.

Benefits of Getting a Gold IRA

“Is a gold IRA safe?” To summarize, yes. Gold IRAs give investors a wide range of benefits that other traditional IRAs don’t, so keep reading if you want to know all about them.

Tax Benefits

One of the primary benefits of self-directed gold IRAs is that you can get tax benefits on your withdrawals or deposits, depending on the account you have. If you have a Roth IRA, for example, you’ll get tax-free withdrawals.

On the other hand, those with a traditional IRA for gold will get tax-free contributions/deposits. Feel free to talk to a financial advisor to determine whether a traditional or Roth gold IRA is a better option for you.


In most cases, diversifying your portfolio is the best option to consider to protect your savings. Of course, you shouldn’t go blindly and buy any gold and silver coins you find out there. As long as you’re smart with your investments, you’ll make the most out of your gold IRAs.


Any gold investment will protect your savings for the future. Unlike other traditional assets like stocks, gold prices tend to remain stable throughout the years, making them a “safe haven” for those looking to preserve their capital.

Potential Drawbacks of a Self-Directed Gold IRA

Regardless of your age, investing in gold IRAs will come with certain drawbacks. These “issues” of a gold IRA are more likely to affect those nearing their withdrawal age, so keep that in mind if you’re one of those people.


Most gold IRA companies will charge you for opening an account, shipping your order, and storing gold in a safe depository. Even though some of those fees are reasonable, some companies charge outrageous prices, which isn’t great for those who want to keep as much of their money as possible.

No Dividends

Gold from a self-directed IRA won’t give you any dividends like stocks. The lack of a passive income source in gold IRAs may put some people off, but we don’t think it’s that much of a problem when comparing it to their benefits.

Penalties and Restrictions

All gold IRAs have annual contribution limits. You get two options, depending on your age. If you’re below 50 years of age, you can only contribute $6,500 every year. On the other hand, if you’re above that age, you can contribute an additional $1,000.

On the other hand, early withdrawals can lead to penalties, specifically a 10% penalty on the amount you’re taking out. Legally, you can start withdrawing money from your account once you’re 59.5 years old.

You could also choose to let your assets grow in value after you’re past the minimum distribution age. However, the IRS will require you to take minimum distributions once you turn 72.

As you can see, like any investment, there are pro’s and con’s of a gold IRA.

Lower Returns

As mentioned, investing in a gold IRA is meant for those who want to protect their savings. Even though gold is an excellent inflation hedge, it’s not as good for those who are looking to get higher returns.

The price of physical gold and other precious metals is meant to remain stable, not grow as other assets like stocks and bonds, so you should consider that if you have different goals.

Does a Gold IRA Earn Interest?

Unfortunately, gold IRAs won’t pay you any interest or dividends, as all the earnings you’ll get will come from selling your assets at a profit.

Is a Gold IRA for Seniors a Good Investment for Retirement?

Gold IRA for Seniors

The answer will mostly depend on what your goals are, but generally speaking, yes. In any case, you’ll want to make stable investments to protect your savings. If you only invest in volatile assets, you may not have that much money once you start taking contributions; it’s more of a gamble.

However, if you diversify your portfolio with precious metals, you decrease the risk of your savings taking a big hit. Historically, gold and silver have remained strong in value, making them an excellent option for seniors.

Precious metals aren’t the only safe assets you can invest in, though. If you want to make the most out of your portfolio, you could also consider investing in bonds or real estate, as they’re excellent options to build long-term wealth. Real estate, for example, can help you get passive income too!

Even though gold IRAs may not seem that straightforward at first, they’re not complicated to understand if you get someone’s help. Reading articles like these and seeking help from financial advisors will always be the best course of action if you want to protect all your assets.

How to Ensure You Open a Gold IRA the Right Way

If you want to open a gold IRA, you must follow these steps:

  • Find a professional custodian to manage your new account.
  • If you want to transfer your assets from your existing retirement account to a gold IRA, ask your current custodian to process that order. This will involve filling out some paperwork.
  • Once you opened your account, feel free to choose the assets you want to purchase and the dealer of your preference.
  • Ask your custodian to process your order.
  • The assets will get transferred to an IRS-approved depository.

That’s the process to open a gold IRA, in a nutshell. Let’s now look at some factors you should keep in mind:


Some of the fees you can expect from gold IRA companies include:

  • Account setup fees
  • Storage fees
  • Management fees
  • Order processing fees

We recommend you don’t go for the first company you see online. Review a few options and choose the best one according to your needs.

Funding Options and Approved Assets

There are a few different options to consider for funding your new IRA. The most common one is to transfer your funds from your traditional IRA/Roth IRA to your new account (as we explained in the previous section).

You can also do an IRA rollover, which involves getting the funds into your account so that you can transfer them to your new IRA account. If you do this method, however, you’ll have 60 days to make the transaction. Otherwise, you’ll get penalties.

Finally, you can fund your gold IRA through wire transfers or cash deposits, as long as you follow the annual contribution limits mentioned before.


You can start withdrawing funds from your account once you’re 59.5 years old (although you don’t have to do it right away). However, the IRS will ask you to start making minimum distributions once you reach 72 years of age.

Taking out distributions before the minimum age will result in a 10% penalty.

Gold IRA Companies

There are many companies you can consider to start investing in gold, such as Augusta Precious Metals, Goldco, American Hartford Gold, etc.

Make sure to do proper research before choosing any company. Read reviews, look for recent customer complaints, hidden fees, or misleading contracts, and ensure the company offers IRS-approved assets.

Research them, and also know what to consider before investing in gold IRA.

Bottom Line – Is a Gold IRA Worth It?

Absolutely! Gold IRAs are an excellent option to consider, especially if you’re a senior person who’s looking to protect your savings.

As long as you do research or seek help from a financial advisor, you’ll get all of the benefits we mentioned on this page. However, remember that gold IRAs aren’t the only option to safeguard your assets, so review all your options and choose the most appropriate one.

Tim Schmidt


Tim Schmidt is an Entrepreneur who has covered retirement investing since 2012. He started IRA Investing to share his expertise in using his Self-Directed IRA for alternative investments. His views on retirement investing have been highlighted in USA Today, Business Insider, Tech Times, and more. He invested with Goldco.