Is a gold IRA worth it for seniors?

Investors today may be looking to gold for security as ongoing economic uncertainty affects their financial portfolios.

But as a safe haven asset designed to hedge inflation and maintain value amid market volatility (rather than build wealth the way stocks can) is gold a good option for seniors? Even if you have a shorter timeline before using your portfolio as a source of income, gold can still be worthwhile, especially with a retirement-minded gold investment like a gold IRA. 

Below, we'll discuss when gold IRAs make sense for seniors and what to know before you open one. Start learning more about the benefits of gold investing now with a free information kit.

Is a gold IRA worth it for seniors?

Gold IRAs may be good for seniors looking to invest in gold. This type of individual retirement account is self-directed, and works similarly to regular traditional, Roth or SEP IRAs. You'll be allowed to make annual contributions up to certain limits, and then receive tax-advantaged distributions after reaching age 59 ½, with required minimum distributions after age 72.

Saving for retirement with a gold IRA can be useful for all the reasons that make gold a solid investment choice in any economy. You can use it to diversify your portfolio, for example. Diversification is one of the best ways to protect your investments against big swings in the market that can occur during periods of economic downturn. As you get closer to retirement age, putting some money in a secure asset class like gold can be useful to help protect the money you've saved.

For seniors, gold IRAs may be especially beneficial, because you're allowed to make additional contributions each year after age 50. While investors younger than 50 are limited to $6,500 for 2023, those aged 50 and over can invest up to $7,500 in their IRAs. Just remember, experts typically recommend keeping your gold allocation to 5%-10% of your overall portfolio.

However, there are some drawbacks to gold IRAs that seniors should keep in mind, too. For one, you may incur more fees for setup and maintenance than you would using your IRA for traditional investments. Plus, the process can require more research than other investment options to ensure you're following IRS guidelines. 

Think a gold IRA could be right for you? Consider speaking with an expert who can help guide you through the process today.

How to invest in a gold IRA

Investing in a gold IRA may take a few extra steps, but it doesn't have to be complicated. Here are a few tips to help you get started:

• Choose a gold investment company: A reputable gold IRA company can simplify your investment process by helping you open and fund your IRA — and even set you up with an approved custodian.
• Fund your IRA: This is the step where you'll deposit money into your IRA, typically via transfer or rollover. Keep in mind IRS contribution limits and how much you want to allocate overall before funding your account.
• Choose your gold: If you're using your IRA to invest in physical gold, you should make sure it's IRA-eligible under IRS guidelines, meaning it meets certain standards set by the agency.
• Store your gold: Along the same lines, you should choose an IRS-approved custodian to store your gold. If you work with a gold investment company, it may recommend one or multiple custodians or allow you to designate your own. Make sure you check the company against the IRS approved custodian list and know about any storage fees you may incur before you sign up.

The bottom line

A gold IRA can be a good investment option for retirement-minded investors, including seniors. These self-directed IRAs can help you gain the benefits of a gold investment, whether you're looking for a hedge against inflation or a safe haven amid future volatility. Just make sure you know all the restrictions of this type of account to fully take advantage and diversify your portfolio as you approach retirement.

Learn more about investing in gold today with a free investors kit!