When it comes to retirement and retirement planning, every cent has to be maximized. Today, people are not funding only 10 years after they retire. They may have to fund up to 30 years after exiting the workforce. One way a person can protect their retirement savings is to invest in gold.
Here are six reasons why you should invest in Gold IRA.
Resistant Against Inflation
One of the things that make the Gold IRA attractive is that this type of retirement account is resistant against inflation. The economy still has not fully recovered from the dotcom crash of the early 2000s. It also has not fully recovered from the housing crash of 2008.
While pockets of the economy are humming along, it can be easily argued that even they are just another financial bubble waiting to burst. Due to the instability still occurring, prices continue to rise thanks to inflation. It simply cannot be prevented.
As more money is printed and released into the economy, it is only a matter of time before the federal government is not able to continue placing band-aids on top of band-aids. Gold, however, is relatively stable. Remember, for several decades, the dollar was indestructible thanks to being backed by gold.
Immune to Currency Devaluation
Financial and investing professionals will secretly reveal that they are bracing for the aftermath of what could be an economic bloodbath in the near future. The amount of currency that has been printed and released into the economy can have serious ramifications for the value of the dollar.
If a day arrives in the next few years when the dollar does experience a currency devaluation, those who placed some of their savings in a Gold IRA can sleep a little bit better than others at night. The price of gold is not determined in the same manner as the value of a currency. The value of gold is determined by supply and demand. It is also fixed daily.
It is a Retirement Account
A Gold IRA is still a retirement account. The main difference between it and a 401(k) is how it is funded. The government does allow retirement accounts to be funded by certain precious metals. Gold is one.
The maintenance of this account is different because there are physical items that have to be stored and kept secure, but it is a retirement account the owner can pull funds from when the time rolls around. Owners of a Gold IRA will incur fees. Like any other account, people are encouraged to consult with representatives from more than one financial institution.
Your goal is to find a custodian. If you already have a retirement account, you can transfer those funds and open a Gold IRA. A rollover 401k to gold IRA, for example, is possible, too. It does not generate income and it does incur fees, but it is also stable.
There are adventurous people out there who have no fear when it comes to investing. Generally, financial professionals still believe that someone who is young can afford to take more risk than someone who is a decade to five years away from retirement.
So, when it comes to your retirement portfolio, you can play it safe at any age. You can take a 50/50 split, too. You can also dive into the risk and add gold for a couple of purposes. First, it diversifies the portfolio. This simply means that there is an opportunity to profit from more than one income stream. \
Second, if someone has gone all in on volatility because they are going for the highest gains possible, gold adds stability. Gold is not susceptible to the same volatility as stocks, for example. Gold is therefore used to hedge, leverage and add a safety net.
Protects Against Government Seizures
In 1933, gold was as important as currency. The Great Depression was also occurring. In an effort to keep things calm, President Franklin D. Roosevelt signed Executive Order 6102. It stated that the hoarding of gold items like coins was forbidden.
Those who study economic history see this as a government seizure against private citizens. So, if another devastating economic crisis occurs, a Gold IRA does offer protections against government seizures. While the government can always find a way to accomplish a goal, it is still more secure than other retirement account funding methods.
There are several freedoms attached to a Gold IRA. One way to generate income with gold is to buy low and sell high. Since the price is fixed on a daily basis, those who are tuned into the precious metals market can spot future drastic price changes due to government policy, the economic climate, and other global factors.
Investing in a Gold IRA is investing in your future.