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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.
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.