You can always convert your retirement wealth into gold. And that’s not even a figurative statement.
It is seemingly impossible at first. However, if you have a gold IRA in your investment portfolio, having gold is always a reality.
In the early parts of 2018, the price of this precious metal has been steadily and relentlessly increasing. In fact, it has been recorded in February 2018 that the gold price is already $1,300 per ounce. That’s a whopping value already.
Therefore, it is always a good idea to consider a gold IRA to your investment. But do you know what a gold IRA is?
What is A Gold IRA?
When someone mentions to you about gold IRA, curiosity is the next thing that you feel. Although it may sound too technical, this terminology is actually pretty simple and straightforward.
Gold IRA is a subcategory of IRA or the Investment Retirement Account. The latter enables a person to get different forms of precious metals such as gold, palladium, silver, and platinum.
Instead of having the typical “paper assets” such as bonds, stocks, and cash, a gold IRA can entitle you for something far more precious.
The gold IRA was actually created by the United State Congress in 1997. It was crafted as a way to appeal to investors who want to have a diverse retirement portfolio and investment.
One should know that the price and value of gold can move independently. It is not directly correlated to other types of asset classes.
Therefore, if there are crises and economic shifts that affect the value of stocks, bonds, and paper money, the price will remain stable. As a result, it becomes foolproof insurance against things like inflation.
It is not directly hinted that the retirement portfolio should only contain gold assets. But if you have large sums of wealth under you, it is wise that you include a gold IRA.
It will secure your hard-earned assets for extended periods. It is indeed an excellent choice for long-term investments like IRAs.
Due to the implementation of the new IRS regulations, ordinary people can already acquire high-quality gold and other expensive metals in their physical form under a gold IRA. It will enable them to invest in these metals safely and conveniently.
Furthermore, the tax for owning such an account is never that heavy.
What Are The Benefits of Gold IRA?
Just like what has been stated, a gold IRA is a way of securing your retirement portfolio. It will enhance its resistance against the uncertainties of a fluid and manipulated economy.
Besides, the geopolitical situation of your place will always remain volatile. Therefore, it is incredibly essential that you have something that can protect your assets and wealth for the future.
Luckily, investing in gold and other precious metal today is entirely plausible already–even if you are not an executive of a part of a large conglomerate. Because of gold IRAs, precious metals are no longer exclusive to the rich.
But there’s one caveat here: you will need a specific type of IRA vehicle so that you can have access to the physical gold, silver, palladium, and platinum.
Needless to say, these particular requirements are worth overcoming. Once you get your hands to a legitimate gold IRA, you are already one step closer from having a secure future.
Protection Against Inflation
It is necessary to emphasize that the purpose of having gold in your portfolio is for investment security. Perhaps, it is one of the biggest reasons that should push you in having a gold inventory to your standard IRA.
These metals are not only precious just because they are shining with luster and rarity. Instead, many hold them essential because they are the most reliable and most straightforward approach of securing your retirement assets and investments from the threats of inflation.
When there is an upheaval in the economy, it is expected that the traditional assets will be ravaged as well.
For instance, your hard-earned money might be swept due to the sudden drop to the value of the American dollar.
It is always important to know that money can get inflated due to the interference of the government or other “key players.” Of course, once it gets inflated, its value will drastically reduce.
Historically speaking, the value of gold and various precious metals don’t lower while everything is plummeting down the drain. Its price is not affected by any economic factors that affect stocks, money, and bonds. It can act independently, per se. And that’s something that you want to take advantage.
When the U.S. dollar dropped down during recession or economic depression, gold didn’t. In fact, it did the opposite.
When every type of assets went down, the price of gold escalated. There are a lot of reasons why it happened.
For one, people and investors are trying to hoard as much gold as they can because they know that it is the only thing that can protect their wealth. Because of the heightened demand for gold, its price skyrocketed as well.
Another thing that causes the increase in the price of gold is its limited supply. Because it is not a renewable resource, it is expected that its sources deplete sooner or later.
This nature of gold and other precious metals can result in the increase of their demands.
The money you invested in a gold IRA comes with sound tax policy. Some people think that having a gold IRA will drown them from numerous forms of taxes. Well, that’s not really the case.
Even if you openly declare that you have precious metals under your portfolio, the government will not give you a hard time.
The IRS, in fact, will always be aware of the people who have IRA–as it part of their job. Things will stay the same.
You will not be pressured on paying on a hefty amount of cash because you have gold. That’s just a myth that you have to stop believing.
Furthermore, if you will decide that you transfer the assets in your gold IRA to another type of retirement plan or investment, you will receive any penalties or problems.
A gold IRA is one of the few assets that have friendly tax treatment nowadays. You should take advantage of this one.
Better Asset Diversification
What are your traditional classes of assets? These should be bonds, stocks, and cash.
Most of the financial coaches would recommend these assets to you because they are the most common.
In fact, they will do this even they are aware of the fact that these assets are already overexposed (e.g. 60% bonds and 40% stocks).
On the other hand, gold and other precious metals can become an investment alternative. Just like other expensive collectibles, the precious metal bullion can effectively diversify your IRA vehicle.
Regardless of the combinations that the bond and stock will make, they will never match the quality of diversification that gold can do.
Moreover, because the relationship between gold and other traditional assets is not cohesive, it is expected that your diversified IRA has a long-term survival rate.
Even if the value of stocks and bonds will fall, there is a guarantee that metal bullions will always remain afloat.
Right now, investing in a gold IRA is a wise idea. It gives you leverage when it comes to the protection of your other retirement assets and investments.
It is something that should be done these days immediately, considering that we are living on fragile times.
Our economy is too volatile. It will only take one major event to cause economic disruption. When that happens, you have to make sure that your wealth will never be compromised.
For you to have a gold IRA, you need to get a self-directed IRA. It is a type of IRA where you are the one who manages it. You are free to invest in a variety of products.
At this point, you need a reliable firm that can process these particular accounts so here’s our #1 recommendation:
Best Gold IRA Company: Regal Assets
The Regal Asset is a highly reputable company that processes gold IRAs and digital assets online. They have the right people to work with your account. They can ensure the security, speed, and privacy of your transactions.
They have the best reputation all across the board with the best customer service that’s not pushy but informative and ensures you have what you need before making your investment decisions.
You can rely on Regal Assets for the most sound advice and will recommend the best strategy according to your goals and investment needs.
Furthermore, they have the right prices so that you can start right away!