Securing Your Future with a Gold IRA

Gold-IRA-KitRecent recessions and global woes have led many people to think more carefully about how they are planning for their future. Setting up an IRA can never be done early enough, by making the minimum contribution to your individual retirement account, by the time you turn 59 ½ you will have a nice sum to secure your future. There are some even better options than the traditional IRA to consider, one is to look at securing your future with a Gold IRA. A Gold IRA is a retirement account that is backed by physical gold, not the US Dollar. There are many benefits to a Gold IRA and surprisingly little risk.

Gold as a stable investment

Depending on what articles you read, gold is either one of the most reliable investments or one full of high risk and prone to emotion driven highs and lows. The truth is that gold is both. If you look at the short term market, such as FOREX, you will see that gold does fluctuate depending on investor emotion and reaction to political and economic events more so than the investments carried on the NYSE. If you look at a broader history of the performance of gold, however, you will see that the actual rate of change has been on a steady trend upward. Media loves to trumpet that gold has skyrocketed or plummeted, those headlines get you to read their stories and see their ads. The truth is that gold is a steady and almost boring investment that plods steadily higher over the decades. It is a limited resource that is needed to secure the markets and currencies, but not all the sources of gold have been discovered. This makes it an ideal investment strategy for securing your future.

How is a Gold IRA different from a traditional IRA?

There are two main ways in which a Gold IRA differs from a traditional IRA. The first is that all of the investments are done in gold, whether that is a physical gold, mining stock, gold company stock or gold futures – you can have a varied portfolio, but it is limited to the gold industry. With a traditional IRA you can have more diversity in your portfolio, but that also means you are open to more risk. The other difference between a Gold IRA and a traditional IRA lies in one prohibition about the kind of asset you can use to fund your investments. You are not allowed to use physical gold to secure investments in a Gold IRA. In all other aspects, such as tax protections and exclusions, both IRAs function the same and the contributions are tax-free. Both IRAs also carry early withdrawal penalties and fees as well.

What should you do?

If you are looking to secure your future with a Gold IRA you need to talk to a reputable company that has experiences managing these types of accounts. The investment manager is referred to as a custodian and these custodians can either be active or passive. A passive Gold IRA custodian will manage any rollover from your 401k into a Gold IRA or other contributions. An active Gold IRA custodian will do that and also provide you with advice and direction on your investments. Your best bet is to look to creating a diverse investment portfolio for your retirement that has a solid foundation in a reliable and stable Gold IRA. Gold investments cannot be re-invested by the government the way that other stocks and bonds that are backed by the US dollar can be re-invested by proxy of how the dollar is handled. Talk to a professional and make sure you understand all the options available to you for making sure your future is provided for.