You’ve decided that you need to start investing for your future. This is a big step that takes a lot of time and research to get into and to benefit from. Options for what to invest in seem to be endless and there is so much to consider before making a choice and jumping in. One of the choices you likely have come across in your search is the gold backed IRA. What is it, and what do you need to know about it before you take the risk and invest in it? Here is what we think are the 5 most important things for you to know.
1. It gives you the opportunity to diversify your portfolio more than you ever could without it.
Portfolio diversification is one of the main things that you need to do in order to ensure that you can achieve your financial goals in retirement. You want to have your wealth spread all over the place because you want to make sure that you have enough to get through retirement. Some of your assets will also do better than others, which is why you need to keep an eye on things. That being said, a gold backed IRA can help to diversify your portfolio by giving you something solid that truly has staying power.
2. It’s a universal currency that you can use, even if something happens to the stock market of the country that you are currently residing in.
If something were to happen to the US dollar, for example, you would be in a pretty bad spot if all of the money that you invested into things was in US dollars. That’s why a lot of people have gotten into the whole gold backed IRA investment. It’s something solid that is going to be able to go with you if you’re in the United States, the UK, or even Asia. That helps you to feel a lot more secure and it can help to reduce any anxiety that you may have about the issue at hand.
3. As with all IRA’s, they are tax-free. Many people will just put their money into a bank account and hope that it’s going to be able to do what they need it to do.
The issue is, if you make enough money from interest as a result of the account, you would get taxed on it. A benefit of the gold-based IRA (and honestly, any IRA or 401k that is out there) is that there are special rules related to the taxation of them – in short, they don’t get taxed at all unless you take it out before you’re able to retire (then you pay a penalty).
4. Supply and demand helps to make the Gold Backed IRA much higher in value than other types of IRA’s.
Think about how much that people want gold and want access to gold. There is a limited supply of gold in the world, unlike money, which could always just be printed more (even though that doesn’t really give it a lot of value). Since gold and other precious metals have a limited supply, it makes sense that people are going to want to invest in it. On top of that, since there is actually demand for it based on the supply, the value of the gold is always going to keep increasing, thus making it a lot better for you in the long run.
5. You are actually owning the gold (or whatever other precious metal you have your IRA established in), which allows for security.
The thought of owning gold may make you nervous because you likely imagine that you’re going to have to have somewhere to store it. With a gold-backed IRA, the gold is somewhere else, you just have the certificates that you need to store until you retire and cash it in. This is a lot safer than the options that you have when you just outright own things that are made out of gold. It also gives you a bit of flexibility because you don’t always have to worry about where the gold is or how you’re going to move it.
Gold backed IRA’s are an excellent idea and asset, and if you’re looking to make your portfolio the best that it can be, then you definitely want to at least consider having part of your investments in a gold backed IRA. Do you want to learn more about all of the options that you have when it comes to the gold backed IRA, or are you interested in taking the time to invest in one? Contact us today to learn more about our options and to get started with our programs.