If you’re looking for tax efficiency, gold investments can be a great way to provide a hedge against economic uncertainty and inflation—not to mention some unique tax benefits. However, navigating the complexities of taxes in retirement requires a strategic approach. Not to worry, we’re here for you! If gold investments are something you’ve been looking in to, here are some tips to help you get started:

1. Consider a Roth IRA conversion
A Roth IRA conversion occurs when assets are moved from a traditional IRA to a Roth IRA—a special individual retirement account where taxes are paid on money going into the account, but future withdrawals are tax free (including gains on your gold investments). If you anticipate a higher tax rate in the future, this can be especially beneficial for seniors. However, you should note that this triggers a tax liability.

2. Utilize a self-directed IRA
If you’re considering a gold investment, you should also consider doing it through a self-directed IRA, which will allow you to hold physical gold (or gold-related assets) within your retirement account. The advantage of doing this is that any gains on your investments become tax-deferred until you withdraw funds in retirement.

3. Make long-term plans
Gold investments at a short-term makes capital gains taxable at your ordinary income tax rate, which can be higher than long-term capital gain rates. If you want the benefit of lower tax rates, you should hold onto your investments for the long-term, or at least one year and one day, which qualifies them for that long-term capital gain rate.

4. Consider gold ETFs or mutual funds
Want tax-efficiency? Investing in gold exchange-traded funds (ETFs) or mutual funds that hold gold can be your best bet. These kinds of investments are more so liquid as opposed to physical gold, and any gains are typically taxed at lower long-term capital gains rates.

5. Utilize tax loss harvesting
If you have lost money in your other investments, it may be a good idea to sell them to offset gains on your gold investment. Tax loss harvesting is a common strategy that can be used to help reduce overall tax liability.

It’s important to keep in mind that tax laws can vary by country, and even by state or region, so be sure to tailor your tax-efficient strategies to your specific circumstances and consult with professionals who are knowledgeable about the tax laws applicable to your situation.