Morgan Stanley Gold IRA

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One of the main goals of Morgan Stanley is to provide financial services to individuals, corporations, families, and other organizations through the company’s wealth management department called Morgan Stanley Wealth Management.

This department is concerned with helping investors with portfolio management and financial planning services.

The firm is located in the northern part of New York City in Purchase, New York but is available to serve clients all over the globe.

Morgan Stanley has grown from small time beginnings to serve millions of customers. 

But do they offer IRAs that can hold physical gold and other precious metals?

Unfortunately they do not offer investors that are looking to protect their savings from inflation an IRA that is allowed to hold physical gold and silver.

But don't worry, we have made a list of the top gold IRA companies that specialize in these accounts, that are much better options than Morgan Stanley.

Before we get started:

We understand how difficult it is to pick a company that you can trust with your hard earned savings.  That's why we create informative and useful information to give you as much knowledge as possible to make the right decision.

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Why Invest Gold in Your IRA?


Individual Retirement Accounts (IRA) protect your retirement as well as your family's financial security.

These special accounts allow you to set aside tax protected savings that you can use in the future.   

With these long term accounts it's important to allocate a significant portion to assets that are solid and reliable, so you have a secure and worry-free retirement. 

a couple listening to a financial advisor

You can have cash in an IRA, but that is devaluing at a rapid pace and inflation is out of control

You need an asset that's dependable, retains it's value, and even increases in value over time, and there is no better asset for this than gold. 

With the world's economy struggling through lockdowns, shortages, wars, and inflation, uncertainty has never been higher and investors are protecting themselves by placing physical gold in IRA's. 

A gold IRA investment prospers from these crisis that negatively affect most other assets. 

Risk is knowing the economic dangers and doing nothing to protect yourself and your family. 

Safety is knowing the economic dangers and taking action to protect your financial future, and this is easy to do with a gold IRA.

The Definition of a Gold IRA


If you intend to invest in physical gold in an IRA, you cannot use the ordinary account. It needs to be distinct, unique, and called a "gold IRA."

A gold IRA is also called a precious metal IRA, and it works like a typical retirement account, having similar contribution limits and distribution guidelines.

Nonetheless, the gold IRA is designed to hold actual physical precious metals such as gold, silver, platinum, and palladium rather than paper currency-backed assets such as bonds and stocks.

Benefits of Investing in a Gold IRA


During the current times of economic uncertainty, many investors are continually looking for financially secure assets to safeguard their retirement plans.

Including gold or IRA-approved precious metals in your retirement asset portfolio has many financial benefits to the investor; we will discuss the main benefits here.

  • Diversifying

Diversifying your investments helps to safeguard your retirement portfolio from economic instability.

Gold IRAs offer one of the most effective methods of diversifying your retirement portfolio instead of committing most of your capital to traditional paper-based assets.

Gold and other precious metals assets provide an ideal, long-term investment strategy for your retirement portfolio.

  • Financial Security

Usually, gold is used to determine the price stability of other assets. Many investors have great confidence in the long-term value of gold. In all of history, humans have always treasured and demanded gold.

Including gold in your retirement investment provides additional stability as well as the opportunity to grow your wealth over time.

  • Stability

The value of gold has increased or remained stable for long periods despite economic and political factors worldwide. Usually, the value of gold is inversely related to the value of paper-based assets.

This is because, as the value of traditional assets falls, the value of gold increases. On the other hand, the value of gold falls when the market is growing. This relationship forms the basis for incorporating gold assets into your portfolio.

Other than the benefits that gold brings to your retirement portfolio, investors also get to enjoy the tax and regulation benefits of a self-directed IRA.

Following the financial crisis of 2008 and the collapse of the housing market, investors have continually preferred investing in gold IRAs to add extra security and balance to their portfolios.

Furthermore, most gold IRAs require other classes of assets other than precious metal assets. Please consider a gold IRA if you are looking for ways of diversifying and balancing your retirement portfolio.

To diversify your retirement assets as effectively as possible with a gold IRA, you must be well-versed in the nuances of gold and precious metals.

Comparison Between Gold ETFs and Physical Gold


Investors can use several ways when investing in gold.

Investors can include gold in their investment portfolios by directly owning physical precious metals, gold exchange-traded funds (ETF), gold mutual funds, and gold options or futures, which are more complex entities.

stock market chart

Each has its own set of advantages and disadvantages; eventually, the ideal option to own depends on an investor’s objectives for the portfolio and risk appetite.

  • What are ETFs? (Exchange Traded Funds)

The demand for ETFs has gotten bigger because they are easily converted to cash and have transparent and low management fees. ETFs are a form of mutual fund bought and sold on a stock exchange like ordinary stocks.

Through ETFs, investors can access numerous securities, including foreign currency, oil futures, and gold. Gold and silver ETFs enable investors to buy gold without needing to handle or store the physical gold.

Most investors are surprised to learn that ETF shareholders cannot redeem their rights for physical gold, implying that the investor does not own any actual gold. Instead, the ETF is an asset whose contract is backed by gold.

However, gold bars are available, but only "authorized participants" can receive the gold upon making the request.  Unfortunately, you as an individual investor are not an "authorized participant."

  • Direct Ownership of Physical Gold

You can invest in physical gold in different forms, like jewelry, bars, and coins. Most investors prefer to buy gold coins since the value of the coin has a direct relationship to the spot price of gold.

Bullion coins are well recognized and are traded more easily than other products.  Just like the ETF, direct ownership of gold is a viable way of safeguarding your investment against inflation and increasing rates, but it also has extra benefits.

For instance, directly owning gold gives the investor maximum control over their gold assets. Usually, the gold is stored in a safe place in its tangible form, and the investor can exercise maximum control over it.

The investor can rely on the value of the coins or use them as currency during times of economic turmoil. 

Unlike an ETF, a gold IRA is backed by physical gold and the investor can receive redemptions in the form of physical gold and silver precious metals.

What Exactly is a Self-Directed IRA?


A self-directed IRA is similar to an ordinary IRA in many ways; the only difference is what it can invest in. The two main types of self-directed IRAs are:

  • The Traditional IRA

This is a type of IRA that enables you to invest funds on a pre-tax basis. That way, you escape paying tax on any of the contributions. This is a good way to increase your wealth in a tax-deferred manner.

You are allowed to withdraw your money upon retirement at the age of 59.5 years or more. The withdrawals are subject to ordinary income rates.

  • The Roth IRA

This type of IRA enables you to invest funds on an after-tax basis, implying you will pay taxes on the contributions before entering the account. This is a good way to ensure your investments increase tax-free.

At the time of withdrawing your money at retirement age, the withdrawal will not be taxed. No matter what type of IRA you choose, the annual contribution you make to the account is limited. In 2022, the largest contribution you can make to your IRA is $6,000.

How Does a Gold IRA Work?


Precious metals IRAs are similar to ordinary IRAs in the way they work.

In other words, instead of depositing actual money in your plan regularly, you get to convert the money into gold and/or silver, which is held in your IRA to secure your future financially.

The coins and bars that can be held in a precious metal IRA are approved by the IRS.

cartoon of woman looking at taxes and a calculator

It is best to work with a precious metals dealer when looking for the ideal IRS-approved products. 

Many gold dealers buy the right precious metal products from wholesalers who transport the physical assets to approved custodian vaults in different locations.

The custodian services are provided by an independent company, which is separate from the entity handling the account’s paperwork. All processes must strictly adhere to IRS guidelines.

Precious Metals that are IRA Eligible


Most investors in the U.S. prefer to buy precious metals to be held in individual retirement accounts to benefit from their tax-free or tax-deferred attributes. 

Investors can buy real physical gold and reap these tax benefits by setting up a simple self-directed IRA.

What is the meaning of IRA-eligible?

Only bars and coins for precious metals approved by the IRS can be used in an IRA; they must meet certain standards set by the IRS.

When looking for the ideal IRA to invest in, it is best to go for the bullion with the label "IRA Approved." To guide you, we have provided a list of the IRA-approved bullion products below.

The following gold coins are eligible for the IRA:

  • American Gold Buffalo coins
  • Austrian Gold Philharmonic coins
  • American Gold Eagle coins
  • British Gold Britannia coins (.9999+ purity)
  • Canadian Gold Maple Leaf coins
  • Australian Kangaroo/Nugget coins
  • Mexican Libertad coins (.999+ purity)

It is essential to note that slabbed "graded numismatic," certified, or proof coins are not eligible to be held in a precious metals IRA. 

Gold bars that are IRA eligible:

  • Gold bars to be held in an IRA must have a minimum purity level of.995+
  • In addition, they must be manufactured and accredited by COMEX, LME, LBMA, LPPM, TOCOM, NYMEX, or an independent mint like the U.S. Mint

What Exactly is a Gold IRA Rollover?


A rollover is defined as the transfer of cash or assets from a non-IRA retirement account to an IRA. Also, a rollover can be a direct or indirect transfer.

A direct rollover can be effected at any time, provided the 401(k)-plan investor can access their funds.

Similar to a transfer, an indirect rollover can only be effected once every year. The total amount of distribution from the plan needs to be contributed to your IRA within the provided period.

Also, remember that an indirect rollover is subject to withholding tax by the employer.

In general, an investor can roll over funds from the following plans into a self-directed IRA:

  • Traditional, SIMPLE IRA, SEP IRA, Roth IRA
  • Employer’s approved retirement plan
  • A deferred compensation plan by the federal or local government according to section 457 plan
  • A tax-protected annuity plan as per section 403 plan

Usually, rollovers worth about $500 billion are rolled over every year. Based on the 10,000 baby boomers that retire every day, rollovers are the most common way of putting money into IRAs.

About Morgan Stanley


morgan stanley homepage

Morgan Stanley was founded in 1935 and has grown to become one of the most prominent financial companies in the world. It has specialized in investment banking, underwriting, credit lending, and asset management.

By the end of 2021, Morgan Stanley had grown its customer asset base to $6.5 trillion, consisting of $6.5 trillion in wealth management under its control. The institution has over 70,000 staff spread across its offices in 40 countries.

Morgan Stanley looks forward to establishing strong relationships with high-net-worth investors to join the company’s wealth management products.

In addition, the company provides Access Investing, a robo-advisor that provides professional money management services to affluent investors who want to avoid paying the high fees of working with a Morgan Stanley advisor.

Morgan Stanley Services


morgan stanley wealth management info

Morgan Stanley Investment Management offers American investors a wide range of financial planning services.

The role of financial advisors is to assist the client to attain their financial goals in life, like saving for retirement, preparing a detailed financial plan, and investment portfolio management (including stocks, ETFs, mutual funds, and bonds).

The company’s financial services are tax planning, estate planning, retirement plans, or life-related event planning such as saving for college, wedding/getting into marriage, buying a home, retiring debt, or inheritance planning.

Fees Charged by Morgan Stanley


The company charges an annual management fee of 0.30%, while Morgan Stanley ranks in the middle of the range for robo advisors. This means you will pay $30 for every $10,000 you invest through the company.

Please note that these fees can rack up rather quickly and erode the profits you anticipate earning as an investor. Nonetheless, their fees are generally lower than what most traditional financial advisors charge.

Traditional financial advisors may ask for 1% of your asset value every year.

Conclusion

Morgan Stanley provides a dependable robo-advisor platform for budding investors who want to walk the investment journey with the company but want to avoid paying high fees for the services.

The robo-advisor provides a wide range of tools to help the investor read the market and make informed decisions.

Investors working with Morgan Stanley can determine what is more important to them and can access portfolio management services with a focus on ESG or new technology.

However, these investments are charged higher fees, likely to take away the investor’s returns.

Morgan Stanley is a traditional financial advisor and not a good option for investors looking to protect their assets with a gold IRA.  There are much better choices that we recommend.

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