Do you want to retire with a comfortable nest egg, but don’t know where to start? If you’re looking for a way to secure your financial future, an IRA might be the right option for you. An IRA is a great way to save for retirement and there are many different types of IRAs to choose from.
Today, we’re going to compare two popular types: crypto IRAs and gold IRAs. Both have their pros and cons, which we’ll discuss here in a bit. In this article, we’ll compare a crypto IRA vs gold IRA and help you decide which is right for you. Let’s get started!
What Is a Gold IRA?
Physical gold has been used as a form of currency for centuries and is one of the most popular precious metals to invest in. Gold is also a valuable hedge against inflation and has a history of outperforming other investments during economic downturns.
A gold IRA is an Individual Retirement Account (IRA) that allows you to invest in this precious metal. It allows the physical gold investing of coins and bars, or investing in gold-backed securities, such as ETFs and mutual funds.
The gold is held in a custodian account and can be used to fund your retirement. The custodian will take care of all the paperwork and ensure that the physical gold assets are properly stored and insured.
More benefits include:
- The security of gold. Physical gold is an asset that can’t be created or destroyed. And as mentioned, physical gold has been used as a currency for a long time, making it a more stable investment than stocks or bonds.
- The growth potential. Gold is a valuable commodity and its price has increased steadily over the years. This makes gold investments a good option for long-term growth.
- Hedging against inflation. Gold is a good hedge against inflation because its price tends to increase when the cost of living goes up. This means that your retirement savings will be worth more in the future if inflation increases.
- Portfolio diversification. It allows you to diversify your portfolio and protect your retirement savings from market fluctuations.
Features List Gold IRA
A gold IRA is such a great investment. Let’s take a look at the 10 best reasons to invest in a gold IRA account:
- Choose what type of gold to invest in. As mentioned earlier, with self directed gold IRAs, you can invest in physical gold bullion, coins, gold bars, gold mutual funds, or exchange-traded funds (ETFs).
- Can hold other precious metals. Gold IRA rules allow you to also invest in other precious metals such as silver, platinum, and palladium using your gold IRA.
- No purchase limits. There is no limit on how much gold you can purchase. This means that you can invest as little or as much as you want.
- Diversify your portfolio. A gold IRA allows you to diversify your portfolio and protect your retirement savings from market volatility.
- Tax-advantaged investment. A gold IRA is a tax-advantaged investment. This means that you can defer taxes on your retirement savings until you retire.
- Transfer your gold IRA to another account. You can transfer your gold IRA to another account, such as a 401(k) or Roth IRA, at any time.
- Risk-averse investment. Gold is a safe investment option, especially when compared to something more volatile like the stock market. If you’re looking for a safe and secure way to invest for retirement, a gold IRA is a good choice.
- Withdraw your gold at retirement. When you retire, you can withdraw your gold from your account and use it to supplement your income.
- Protected from inflation. Gold is a good investment choice if you’re looking to protect your retirement savings from inflation. Over time, gold tends to increase in value, which means your savings will be worth more in the future.
- No need to sell your gold. With a gold IRA, you don’t have to sell your gold when you want to cash out. You can simply take a distribution from your account to help supplement your income.
Different Companies That Offer Gold IRA’s
When it comes to choosing a company to help you with a gold IRA, it can be tough to decide who to go with. There are so many companies that offer these services, but not all of them are created equal.
It’s important to do your research and find a reputable company with a proven track record. Here are three gold IRA companies we’ve vetted and can confidently recommend:
Goldco IRA
With over 15 years of experience, Goldco’s main goal is to help clients protect their retirement through gold IRA investing. As a full-service award-winning gold and silver broker, Goldco also helps clients understand precious metals investing.
Goldco IRA Pros
- Broker specializing in gold and silver IRAs with an A+ BBB rating and AAA BCA Rating
- They have low annual fees
- Helps you transfer funds to a gold self-directed IRA from your existing 401(k), 403(b), 457, pension, or Thrift Savings Plan (TSP)
- Can also rollover or convert Roth IRAs
- Easy, and free IRA and 401(k) rollovers
- Excellent customer service
- Guides clients through the process of a gold IRA rollover
- They have the biggest promotions in the industry
- Goldco also offers gold and silver for sale outside of retirement accounts
- Free storage for non-IRA precious metals
- The highest buy-back guarantee around
- They don’t use high-pressure sales tactics
- Unrivaled customer service
- Goldco was honored in the 2021 American Business Awards® as a Company of the Year
Goldco IRA Cons
- They rarely sell any precious metals other than gold or silver. So if you’re interested in platinum or palladium as part of your retirement accounts, you may need to look elsewhere.
Augusta Precious Metal IRA
Augusta Precious Metals, which started in 2012, is a family-owned company that has a well-trained staff that is committed to helping you achieve your retirement financial goals.
Augusta Precious Metal IRA Pros
- Easy account setup
- Silver and gold bullion prices are competitive
- Fair and transparent fee structure
- There are no sales commissions
- Client education is the first step in a streamlined approach
- Support from a dedicated team of experts
Augusta Precious Metal IRA Cons
- The minimum investment is $50,000, while Goldco is only half that amount.
- There is a limited selection of metals as gold and silver are the only ones they offer
Regal Assets IRA
Invest in precious metals and cryptocurrencies with Regal Assets, an alternative asset investment firm. You can invest in metals and cryptocurrencies through the company’s IRA, and its fees and commissions are transparent.
Regal Assets IRA Pros
- Physical bullion is their only product, which is easy to liquidate
- A brand that has been around for over ten years
- Member of the Forbes Finance Council
- All assets are under one roof (Regal IRA™)
- When selling back, there are no additional fees
- A solid reputation
- They use a flat fee structure
- Separated storage for safety
Regal Assets IRA Cons
- They’re not transparent about their management team
- It can take several months to complete the rollover process
- Not good for investors who have little nest eggs.
- There is no current pricing for precious metals available online.
What Is a Crypto IRA?
A Crypto IRA is an individual retirement account in which you can hold, buy, and sell cryptocurrencies and other digital assets. Just as with a traditional IRA, you can contribute up to a certain amount each year and enjoy tax-deferred growth.
With a Crypto IRA, you have the added benefit of being able to invest in an emerging asset class with tremendous potential. While there are some risks associated with investing in cryptocurrency, many believe that the potential rewards far outweigh the risks.
Some benefits of investing in a crypto IRA include:
- Emerging asset class. You can invest in an emerging asset class with tremendous potential.
- Potential for high returns. Cryptocurrencies have the potential to generate high returns. For example, Bitcoin was worth pennies when it launched back in 2009 and reached a high of $69,000 in November 2021
- The ability to hedge against inflation. Cryptocurrencies can be a good way to hedge against inflation because they’re not subject to the same forces that traditional fiat currencies. Forces such as central banks, governments, and financial institutions.
Features List Crypto IRA
A crypto IRA is a fairly new investment vehicle as compared to something like a gold IRA. Let’s discuss nine key crypto IRA features you should consider before investing:
- No need to sell your crypto. With a Crypto IRA, you don’t have to sell your cryptocurrency when you want to cash out. You can simply take a distribution from your account to help supplement your income.
- Tax benefits. A Crypto IRA offers tax benefits. This means that you can defer taxes on your retirement savings until you retire.
- Decentralization. Cryptocurrencies are decentralized, which means they’re not controlled by central banks, governments, and financial institutions.
- Security. Cryptocurrencies are digital assets that are secured by cryptography. This makes them more secure than traditional fiat currencies.
- Portfolio diversification. A Crypto IRA can help diversify your portfolio. This is because cryptocurrencies are not correlated with traditional asset classes such as stocks, bonds, and real estate.
- Withdraw your crypto at retirement. You can withdraw your cryptocurrency from your IRA and use it to comfortably live off during your retirement years.
- High potential returns. Cryptocurrencies have the potential to generate high returns. This is because they’re still in the early stages of adoption and have a lot of room to grow.
- Volatility. Cryptocurrencies are volatile, which means their prices can fluctuate wildly. This can be a good thing or a bad thing, depending on how you look at it.
- Risk. Cryptocurrencies are a risky investment. This is because they’re volatile and there’s a possibility that they could become worthless.
Different Companies That Offer Crypto IRA’s
Cryptocurrencies are all the rage right now, and if you’re like many people, you may be wondering how you can get in on the action. There are several different companies that offer crypto IRAs, so it can be tough to know which one is right for you.
Let’s take a look at three different companies that offer crypto IRAs that we’ve personally researched, vetted, and can confidently recommend.
Coin IRA
Founded in 2017, Coin IRA lets you invest in Bitcoin and other cryptocurrencies as part of your self directed retirement account. Their custodian, Equity Trust Company, has $34 billion in assets under custody and has over 45 years of experience in self directed IRAs.
Coin IRA Pros
- There are no monthly or storage fees
- They have highly specialized IRA consultants
- Weekend hours are available by appointment
- Industry leaders who bring extensive experience
- With their low-pressure investing approach, they focus on educating their clients first
- Among the cryptocurrencies that Coin IRA supports are Bitcoin, Ethereum, XRP, and more.
- There are no setup or maintenance fees.
- Live customer service representatives are available.
Coin IRA Cons
- Compared to some of its competitors, it offers a smaller selection of cryptocurrencies.
BitIRA
They serve a wide range of customers who wish to take advantage of digital currency assets in their retirement savings portfolios by serving as one of the nation’s leading specialists in digital IRA setup and management.
BitIRA Pros
- Assistance with account setup, account rollovers, and funding
- Secure your funds offline with a cold storage wallet
- High-level security
- Customer service that is excellent
- Self directed retirement accounts that are IRS-compliant
- Comprehensive insurance coverage
- An IRA specialist dedicated to your needs
BitIRA Cons
- A possible long wait between setting up an account, funding it, and being ready to invest
- The minimum investment with BitIRA is $5,000, which is higher than some of its competitors.
- They don’t offer any do-it-yourself trading
Alto CryptoIRA
Alto CryptoIRA began its journey with the goal of breaking down barriers. There was a problem with the old way of investing with your IRA – so they changed it. Investing is easy with their community, no matter how much expertise you have.
Alto CryptoIRA Pros
- Signing up is easy
- There are more than 175 cryptocurrencies available
- An affordable price that is transparent
- There is no setup fee or account management fee
- The minimum deposit and trading fees are both low
- There are 75+ partners available to invest in alternative assets.
Alto CryptoIRA Cons
- While they have many partners for alternative assets investing, they’re not all properly vetted unfortunately
- They don’t offer solo 401k accounts
- There are no crypto staking rewards
- You have to pay an extra fee every time you invest
Portfolio Diversification
When it comes to investing, diversifying your portfolio is one of the most important things you can do to mitigate risk and protect your assets. But what are the best ways to diversify?
For many people, traditional investments like stocks and bonds are not enough. They want to explore other options that can offer more potential for growth. For these investors, a crypto IRA or gold IRA may be the perfect solution.
Both gold IRAs and crypto IRAs offer a unique way to diversify your portfolio and protect your savings. If you’re looking for the safer, less risky investment between the two, then gold is the way to go.
As mentioned earlier in this article, gold has been used as a form of currency and store of value for centuries, and its value is not dependent on any one government or financial institution.
Cryptocurrencies, on the other hand, are a more volatile investment. They’re still in the early stages of adoption and have a lot of room to grow. However, this also means that there’s a greater risk that they could become worthless.
If you have the financial means to invest in both, then we recommend diversifying your portfolio with both a gold IRA and a crypto IRA. This will give you the best chance of weathering any market fluctuations and protecting your savings.
Tax Benefits
When it comes to tax benefits, both gold IRAs and crypto IRAs offer several advantages. With a traditional IRA, you’re required to pay taxes on your contributions when you withdraw them in retirement.
However, both gold IRAs and crypto IRAs offer the same tax benefits as a Roth IRA. This is because you’re able to make contributions with after-tax dollars, and you don’t have to pay taxes on your withdrawals in retirement.
So if you’re looking to make a smart investment and lower your tax bill, both gold and crypto IRAs are worth considering.
Inflation Protection
One of the biggest concerns for retirees is inflation. This is because it can eat away at your savings and erode your purchasing power. Fortunately, both gold IRAs and cryptocurrency IRAs offer a form of inflation protection.
With a gold IRA, you’re investing in a physical asset that has historically maintained its value in the face of inflation. And with a crypto IRA, you’re investing in an asset that has the potential to appreciate in value as inflation increases.
Out of the two, gold IRAs offer more protection against inflation. This is because gold is a physical asset that’s not subject to the same volatility as cryptocurrencies. However, both gold and crypto IRAs offer the potential to provide you with inflation-protected growth and preserve your purchasing power in retirement.
Final Verdict
Gold and crypto are both seen as hedges against inflation, but there are a few key differences. Both have their pros and cons, so it ultimately comes down to what the individual investor is comfortable with.
If you can only choose one of these two to invest in, then a gold IRA is the better, safer, and less risky option. Gold has been around for centuries and is seen as a safe haven during turbulent times.
Cryptocurrencies are still relatively new, and while there is more potential for growth, there is also a lot more risk. Whichever route you decide to go, make sure you do your research so that you can make an informed decision.
FAQ
Below are some frequently asked questions about both gold IRAs and crypto IRAs.
What forms of gold can you own in a gold IRA?
You can own physical gold in the form of coins and bars, or you can invest in gold ETFs and mutual funds. No matter what form it takes, owning gold in your retirement account can help to diversify your portfolio and protect your wealth.
Can you roll a Roth IRA into a gold IRA?
Yes, you can roll over a Roth or traditional IRA into a gold IRA. To do this, you’ll need to set up an IRA in your self directed retirement account and then transfer the funds from your Roth or traditional IRA into the new account.
How is gold taxed in IRA?
How you’re taxed will depend on if you invested in your gold IRA using pretax or after-tax dollars through a broker or special custodian. With a traditional IRA, you’ll pay taxes on your withdrawals in retirement. With Roth IRAs, you won’t pay taxes on your withdrawals since you’ve already paid taxes on your contributions.
How do you convert your IRA to gold?
One of the simplest ways to convert your IRA to gold is by rolling over your existing account into a new one that is backed by gold. This can be done with a Roth or traditional IRA. While this option typically incurs some fees and may be subject to taxes, it is generally a fairly straightforward process.
Another popular option for converting your IRA to gold is through a company that specializes in precious metals. These companies will typically purchase gold on your behalf and then store it in a secure location. Some companies will also provide insurance for your gold, which can give you added peace of mind.
Finally, you can also purchase gold coins or bars and then deposit them into your IRA. This option offers the most flexibility in terms of how much gold you can buy, but it also comes with the highest fees and risks.
How much can you put in a gold IRA?
For the 2022 tax year, you can contribute up to $6,000 to your gold IRA. If you’re 50 or older then you can contribute another $1,000 for a total contribution of $7,000. And, it’s not just gold that you can put into a gold IRA. You can also put silver, platinum, and palladium in.
Can you take physical possession of gold in your IRA?
Yes, you can take physical possession of gold in your IRA, but there are some restrictions and guidelines that you need to be aware of.
First, you need to make sure that the gold meets the purity requirements set forth by the IRS. Second, the gold must be stored in an approved depository. And finally, you will be responsible for any taxes and fees associated with taking possession of the gold.
Provided you are aware of these restrictions and guidelines, taking physical possession of gold in your IRA is a perfectly viable option.
What exactly is a gold IRA, and how does it work?
A gold IRA is a retirement account that allows you to invest in gold and other metals like silver. Gold IRAs are a popular way to diversify your portfolio and protect your retirement savings from inflation.
Here’s how it works: you open a gold IRA account with a custodian, who holds the metals in a safe storage facility on your behalf. When you retire, you can take distributions in cash or physical gold.
Gold IRAs have many benefits, including protecting your purchasing power and hedging against market volatility. If you’re looking for a safe and reliable way to invest for retirement, a gold IRA may be right for you.
What are the disadvantages of investing in a gold IRA?
Gold is one of the oldest forms of currency, and for centuries it has been used as a store of value. Today, gold is still seen as a safe-haven investment, and many people choose to invest in a gold IRA as a way to protect their savings from inflation.
However, there are two disadvantages to consider before investing in a gold IRA. The first is that gold is a physical asset, which means that it can be stolen or damaged. And the second is that gold can be difficult to sell quickly at your desired price.
This means you may not be able to get your money out of your investment as fast as you need it. Given these risks, it’s important to weigh the many potential benefits of investing in a gold IRA against the two small risks before making a decision.
What are the advantages of investing in a gold IRA?
There are many advantages to investing in a gold IRA. First of all, gold is a very stable investment. Its value does not fluctuate as much as other investments, such as stocks and bonds. This makes it a good choice for investors who are looking for a safe place to put their money.
Additionally, gold offers a great deal of flexibility. Investors can choose to invest in gold coins, bars, or even mining companies. This gives investors the ability to tailor their portfolios to their specific goals.
Finally, gold has historically been a good hedge against inflation. When the value of other investments declines, the value of gold tends to go up. This makes it an ideal choice for investors who are concerned about the possibility of inflation eroding the value of their portfolios.
What type of gold are IRS approved investments?
The Internal Revenue Service (IRS) has strict guidelines for what types of gold bullion and coins are eligible for use in a Gold IRA. To be IRS-approved, the gold must meet certain standards of purity and fineness.
For example, the gold must be at least 24 karats and have a purity of 99.9%. Coins must also be legal tender in the country of origin. In addition, the gold must be stored in an approved depository and insured against loss or damage.
While many different types of gold meet these criteria, some of the most popular options include American Eagle coins, Canadian Maple Leaf coins, and South African Krugerrands.
How much does it cost to start a gold IRA?
The cost of starting a gold IRA can vary depending on a number of factors, such as the type of IRA account you choose and the custodian you use. Generally, you can expect to pay an annual fee of around $50 to maintain your account, as well as any transaction fees associated with buying and selling gold.
You may also need to pay a one-time setup fee when opening your account. However, many custodians will waive this fee if you agree to set up automatic monthly contributions to your IRA. Overall, the cost of starting a gold IRA is relatively low compared to other types of retirement accounts.
Are gold IRAs a good idea?
When it comes to retirement planning, there are a lot of options available. But is gold a good choice for your IRA? First, it’s important to understand that gold IRAs are not actual physical gold. Instead, they are investment portfolios that include gold as one of the asset classes. This means that you don’t have to worry about storing or protecting your gold.
Second, gold has historically been a relatively stable investment, even during times of economic uncertainty. In fact, it often goes up in value when other asset classes, such as stocks and bonds, are falling. This makes it an ideal diversification tool for your retirement portfolio. Finally, gold IRAs offer certain tax advantages. For example, the money you contribute to your gold IRA can be deducted from your taxable income.
Has gold been a good investment over the long term?
Gold is often considered a safe investment, and a way to preserve wealth in times of economic turmoil. And it’s true that gold prices tend to rise when other asset classes are struggling.
The average closing price of gold in the year 2000 was $279.29. The price of gold is currently at $1,748.30 at the time of this writing with an all-time high (ATH) price of $2,074.88 in August of 2020.
What are the best bitcoin and cryptocurrency IRA platforms?
After doing a lot of research, and doing our due diligence, we can confidently say that the best Bitcoin and cryptocurrency IRA platforms are Coin IRA, BitIRA, and Alto CryptoIRA.
Does bitcoin or gold protect against inflation better?
There are a lot of factors that go into whether or not Bitcoin or gold protects against inflation better. For instance, with gold, there is the annual cost of storage, which can run into hundreds of dollars.
There is also the issue of liquidity; if you need to sell your gold in a hurry, you may have to take a discount. With Bitcoin, there are transaction fees charged by exchanges and miners, which can fluctuate.
And then there is the question of volatility; both gold and Bitcoin prices can swing wildly, but Bitcoin tends to be much more volatile. But as a general rule, gold is going to be a more stable investment than Bitcoin.
Which IRA is best for crypto?
When it comes to crypto IRAs, we highly recommend Coin IRA. They’re an industry pioneer with an A+ rating, have been in business for 45 years, and currently have $34 billion in assets under custody.
They offer a self directed IRA, which means that you have complete control over your investment choices. They also provide education and support so that you can make informed investment decisions.
In short, Coin IRA is an excellent choice for anyone who wants to add Bitcoin and other cryptocurrencies to their retirement planning. With their experience and expertise, they can help you make the most of your investment.
How do crypto IRAs work?
With a crypto IRA, you can contribute Bitcoin, Ethereum, Litecoin, and other digital assets to the account. The account grows tax-free and you can withdraw the money tax-free at retirement. There are two types of crypto IRAs: self-directed and managed.
With a self directed IRA, you choose which assets to invest in. With a managed IRA, the manager makes the investment decisions for you. Crypto IRAs are new and they have some risks.
For example, the price of Bitcoin and other digital assets can go up and down quickly. But if you’re comfortable with those risks, a crypto IRA can be a good way to save for retirement.
Is a crypto IRA a good Idea?
With the recent rise of cryptocurrencies, you may be wondering if a crypto IRA is a good idea. Essentially, you’re investing in digital assets like Bitcoin or Ethereum with funds from your retirement account. This can provide some tax benefits, as well as the potential for significant growth.
However, there are also some risks to keep in mind. Cryptocurrencies are highly volatile, and their prices can change significantly over time. There’s also the possibility that the IRS could classify them as property, which would subject them to different taxation rules.
Ultimately, whether or not a crypto IRA is right for you depends on your personal financial situation and goals. If you’re willing to take on some additional risk, it could be worth considering as part of your investment strategy. However, be sure to do your research and speak with a financial advisor before making any decisions.
Can you fund an IRA with crypto?
Yes, you can fund an IRA with crypto. You can use it to buy into companies that have products and services you believe in. And, you can use it to help newer generations get a head start on their retirement planning.
It’s simple: just add the crypto you want to invest to your IRA, and let your custodian do the rest. They will hold the crypto for you and manage the account. When you’re ready to retire, you can cash out your crypto and use it to fund your retirement.
Kevin Ocasio is a staff writer for The Investing Resource, United States Marine Corps veteran, serial entrepreneur, and certified digital marketer, who writes for various online publications including his own Grind Boss blog.