Gold IRA
Post on: 15 Май, 2015 No Comment
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Welcome to GoldIRARolloverInvest.com. Our goal is to provide useful information for those who wish to invest in gold, particularly gold IRAs. With the vast amount of information available online, it is often times difficult to find up-to-date and accurate information. We have researched the pros and cons of investing in gold and shared the results here.
Is Gold a Good Investment?
The short answer is, yes. Gold is a solid, long-term investment and heres why:
- Paper currencies are known to fail. Eventually, every single paper currency fails. Paper currencies are backed by absolutely nothing and are used in every developed nation in the world today. When a currency is not backed by gold, hyperinflation is the inevitable.
Investing in Gold
The best dollar hedge investment is and always will be gold. When the value of the dollar decreases, golds value will increase. The tangible value for gold will never change. Despite the popularity of paper currency, the world is on a gold standard.
For proper portfolio diversification, it is recommended to allocate 3%-10% in gold. Some financial managers advocate an allocation of up to 20%.
Gold plays an important role in a well diversified portfolio. The price of gold increases when the value of stocks and bonds falls.
How to Invest in Gold
Here are two ways to invest in gold:
- Buy gold and have physical delivery. Gold bullion (gold bars) and coins are the most popular types of gold items to purchase for investing.
- Buy gold for your retirement account. A gold IRA can diversify your retirement portfolio and has outperformed nearly all forms of paper investments, including the stock market and real estate.
Gold IRA Investing
Gold IRAs are a type of investment account in which currency is invested in and backed by gold. The popularity of gold IRA investing has risen over the past several years due to the high retention value of gold. Many times, a gold IRA account is preferable to standard IRA and retirement investment accounts.
Here is an example of gold IRA growth (since 2001):
Gold IRA Rollover
There are two options if you want to transfer from an existing IRA account:
A transfer can be done at any time with an existing IRA (if assets are going from custodian to custodian).
A rollover is when you are receiving the distribution from a retirement account and you deposit the funds into another retirement plan.
How to Buy Gold
Once youve decided to invest in gold, it is an easy process to carry out. To buy gold, contact a reputable gold IRA company. We highly recommend Regal Assets . You can setup an IRA account on their website. Request a free gold investing kit from them today.
Where to Buy Gold?
There are many places online where you can buy gold. As mentioned above, we highly recommend Regal Assets . They have an A+ rating with the Better Business Bureau and a five-star TrustLink rating.
Gold IRA Companies
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Soon we will be releasing reviews on the best gold IRA companies for those who wish to transfer or rollover their IRAs into a gold investment. The reviews will include recommendations, best practices, warnings, BBB ratings, TrustLink ratings, and more.
A gold IRA is basically an individual retirement account that is backed by investments in physical gold. Unlike paper investments, gold is inflation-proof, hence it provides a more secure financial future for investors. Regardless of age, any investor can benefit significantly from buying a gold-backed IRA. Here are some of the key benefits:
Investment Diversity
One of the most important reasons why you should seriously consider investing in a gold IRA is to diversify your investment. Diversification with precious metals enables you to create a well-balanced investment portfolio that is protected from volatility and declining markets. Markets have become more risky and volatile due to the worldwide economic uncertainty, making precious metals a necessity for all investors.
The forces that determine the price of gold are often in direct opposition to those that control paper assets such as, real estate, treasury bills, mutual funds, stocks and bonds. Simply put, the price of gold tends to increase when other financial assets are decreasing. This makes it an effective diversifier, because it is more stable in the market, and can help reduce your portfolio risk.
Protection Against Inflation
The government has full control over paper money, since it has the power to initiate bills when it wants. This has led to large amounts of paper money being printed over the years at an alarming rate, causing the U.S. Dollar to lose its value. In addition, the increased circulation of the dollar has also contributed to inflation. However, since FED cannot make gold on demand the way it does with paper currency, it is able to hold its value against inflation, banking crisis and other external forces. It is for this reason that many people prefer to have a gold-backed IRA investment plan. The long-term stability provided by gold makes investors feel more secure about their retirement plans.
Preserves Wealth and Purchasing Power
When paper investments like stocks decline in value due to global economic instability, investors run to gold as a safe haven. However, unlike paper money that can be printed on demand, gold is mined, and that process takes time. Because it is scarce, it is highly sought after by many people. This has led to a steady increase in the price of this precious metal over the years; a trend which is expected to continue in the future.
Besides being able to preserve its purchasing power against inflation and the declining dollar, gold investment, will give you the peace of mind knowing that your financial future is secure. No more worrying about losing your life savings due to economic factors, which are out of your control. In other words, it enables you to live your retirement years free of financial stress and anxiety, just as you have always wanted. This is what makes a gold-backed IRA a smart investment choice.
Tax Benefits
Another reason to consider gold IRAs is because they provide you with tax benefits that other investments don not offer. When you invest in gold, you will be able to accumulate wealth year after year without being taxed. This is because gold falls under income investments, which are tax-deferred. You will only pay tax when you are ready to withdraw your investments.
Safe Storage
Owning physical gold comes with its fair share of risks, from theft to counterfeits. However, these risks can be avoided by investing in a gold IRA. This is because an investors gold is stored in IRA-approved depository facility that is completely safe. It is the responsibility of the gold IRA company to authenticate, transport and safely store your gold. This means that as an investor, you never handle the physical gold yourself, which reduces the risks of it being stolen. It is important to keep in mind that for any gold to be accepted for an IRA investment, it must have at least 99.5% purity. Any purity value below this will be rejected.
Highly Liquid and Portable
Lastly, gold is extremely easy to convert into cash, unlike most financial assets. You can buy and sell gold 24 hours a day without any delay or difficulty.
As an investor, you have a lot to gain by buying a gold-backed IRA. It’s one of the smartest ways of ensuring financial stability during your retirement years.