I'm Donny. I'm a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.
Use this calculator to estimate the value of your retirement fund if you invest a portion of it in a precious metals IRA.
Using this precious metals IRA calculator
To calculate the value of your IRA at retirement, the calculator needs some basic information, such as:
- Your current age
- When you plan to retire
- The amount of your current savings
- The amount you plan to contribute annually
- Your annual return (generally around 6%)
Optionally, you can open the Advanced menu to answer some questions specific to precious metals, such as:
- The percentage of your current savings and future contributions that you plan to invest in precious metals.
- The percentage of that investment that you will allocate to gold and silver.
Each time you change the value of a field, the calculator automatically updates. Once you’ve ensured that the information in the calculator is correct, the calculator will display your estimated value at retirement, along with a chart comparing your total contribution to your total investment return.
For example, if an investor is 25 years old, has current savings of $1,000, and plans to contribute an additional $5,000 each year at a 6% average return, they would have an estimated value of $1.01 million when they retire at 65 if they allocate 10% of their savings to precious metals.
If they increase that allocation to 25% for precious metals, their estimated value would increase by $280,000.
Precious Metal Definitions
Here are important definitions that you need to know when using the precious metals IRA calculator.
Gold IRA: A gold IRA is a specialized retirement account that holds precious metals. Despite the name “gold IRA,” these accounts can hold various precious metals in approved forms such as bars, coins, or bullion.
Self-directed IRA: Regular IRAs can only accommodate common types of investments like stocks, bonds, or mutual funds. Self-directed IRAs give investors access to less common types of investments like real estate or precious metals through an IRA custodian.
Spot price: The futures price locks in a price for commodity months or years in advance. Spot price, on the other hand, is the price that you can buy or sell a commodity for right this minute.
Compound interest: Each period, you add the interest you’ve earned to the balance of your account. As long as you don’t remove any money, you will earn interest on a larger amount each period—this is compound interest.
Retirement age: Although you can start receiving social security benefits as early as 62 and can cash out an IRA as early as 59 ½, most people retire at 67.
Annual return: Your one-year net profit or loss is your annual return. You can express annual returns either as a number (such as $12,000) or as a percentage (such as 7.2%).
Annual contribution: Your annual contribution is the amount you pay into a retirement account each year. It’s helpful to estimate an average annual contribution to calculate value at retirement.
FAQs
Is a precious metals IRA a good idea?
While gold can be volatile short term, it’s shown consistent growth in the long term. This makes gold especially useful for long-term investments like a precious metals IRA.
Are gold and silver a good inflation hedge?
Less volatile commodities like gold and silver are good hedges against inflation, in part because it is not tied to any individual currency.
Can I take physical possession of precious metals in an IRA?
Once you turn 59 ½, you become eligible to cash out your IRA. At that point, you can walk away with the physical gold and silver in your gold IRA.
How do I rollover my 401(k) to a precious metals IRA?
You can rollover your 401(k) into a gold IRA by using the funds from your 401(k) to purchase gold through the custodian of your self-directed IRA.
Goldco is a leader in the precious metals industry, with over a decade of experience helping customers protect their retirement savings.
I'm Donny. I'm a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.
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