The term “Gold IRA” (also known as “ physical Gold IRA “) is an investment option many US Citizens with retirement accounts haven’t been introduced to but is slowly gaining popularity.
While many believe that IRAs can only hold stocks, mutual funds and bonds holding gold in an IRA is an incredibly unique way to hedge against risk to protect one’s savings for retirement.
Gold IRAs are increasing becoming prominent as far as Individual retirement accounts are concerned. People are opting for these simply because of the many benefits of IRAs that hold precious metals can offer.
An IRA (Individual Retirement Account) is an investment used by individuals to specifically grow funds for their retirement. It is basically a savings account that has allows big tax breaks over the duration in which the funds have limited access. You are able to hold stocks, mutual funds bonds, precious metals and other assets within the Individual Retirement Account.
There are different types of IRAs which includes Roth IRAs, Traditional IRAs, Simple IRAs, SEP IRAs and Self-Directed IRAs. It is however important to highlight that not everyone can take advantage of these types of individual retirement accounts. Each account has eligibility restrictions that are based on your income and employment status.
Why Consider A Gold IRA Account?
Most investment experts suggest that having an Individual Retirement Account that holds precious metals like gold, silver or platinum is the best way you can assure yourself against inflation and more of a stress free retirement.
It is recommended to convert at least 10-20% of your entire IRA into Gold or other precious metals due to their ability to respond to fluxuations with inflation. Emphasis is placed on gold due to its ability to hedge against inflation (over the last 10 years IRA accounts that hold gold have grown over 300%)
Gold IRA: Reduced Risk With The Potential For Growth
During inflationary periods within the economy the absolute best way you can save yourself from devaluation of the US Dollar is by simply starting a Gold-Backed IRA investing account (Gold Traditional IRA or Gold Roth IRA ). With a rollover IRA account you can convert some portion of your retirement benefits or savings into gold which will lower the risk and volatility of your retirement funds but still provide room for potential growth in value.
It is however important to point out that not all precious metals are equal according to the world of Gold IRAs. Your investment in these metals must meet certain set standards that prove their fineness. These standards are established by the Internal Revenue Code meaning that if you are investing in Gold it must be classified as pure gold for them to be accepted and applicable as IRA Gold accounts.
When Investing The Key Is To Diversify
With the vast array of investment choices available on the market today it is never wise to place one specific investment (no matter how lucrative it may be) in your Traditional IRA / Roth IRA or 401k account. It is all about diversification as markets and investments do flucuate from time to time.
Diversification is important when all or most of the assets are tied to the value of the American Dollar. Any changes in the value of the US Dollar can affect all of the investments that are directly tied to it.
Having a “ precious metals IRA ” portion within your retirement portfolio is an exceptional way to protect your financial future AND your family’s from dangers that are related to monetary value like price inflation, economic volatility and currency devaluations.
We know that inflation and deflation is certain any economy. It is important that if you want added security to the stability and growth of your retirement account it is time to consider doing a Gold IRA Rollover and add a level of risk protection to your investment portfolio.