More and more Americans are diversifying their portfolios by adding gold to their retirement accounts. Is a self-directed precious metals IRA the right move for you?
A Gold IRA is a government-approved retirement account like any regular IRA or 401K but doesn’t limit your options in standard paper-based assets such as stocks, mutual funds, and bonds. A Gold IRA allows you the added benefit of investing in physical Gold coins and bars and other IRS-approved precious metals such as silver, platinum, and palladium metals.
Why Roll Over an Existing IRA to Gold IRA?
If you have an existing retirement account such as an IRA or 401K, rolling over is easy and simple. Investors who understand market volatility are aware that paper assets like stocks and bonds are only as good as the market, meaning if the market crashes, their investments lose value. Gold and other precious metals always retain or increase in value because they’re physical assets that can’t be printed over and over again, hence they act as a hedge against inflation and deflation. Adding precious metals to a retirement portfolio, allows investors to balance their high-risk stock investments with low-risk commodity assets like gold and silver.
By investing in a Gold IRA, you can diversify your retirement portfolio on a tax-deferred basis and maintain the tax preferential treatment. This allows you to transfer or rollover a portion of your existing IRA account into a Gold IRA and will not trigger any tax implications.
When you open a Gold IRA, you can also take advantage of the annual deductions at $5,500 if you are below 50 years old and $6,500 if you are above 50 years old. A retirement specialist will help you navigate all the regulatory requirements, avoid any tax pitfalls, and diversify with physical precious metals to stabilize your retirement portfolio.
The Following Are The Top Key Benefits to Invest in A Gold IRA:
- Portfolio Diversification To Minimize Risk – Investing a portion of your retirement accounts in physical gold, silver, and/or other precious metals allows you to diversify your portfolio in a safe-haven asset that has a proven record of protecting your funds especially in volatile markets, bank collapses, and currencies crashes. Wall Street’s investment vehicles are all paper-based, whether stocks or bonds. Physical gold and precious metals provide an added layer of protection and diversification.
- Hedging Against Inflation and Deflation – Over time, inflation erodes your investments. Gold provides a hedge or a safety net, against both inflation and deflation to further immunize your portfolio from the effects of a dollar degradation.
- Safe Retirement and Profit Opportunity: Historical performance of gold and silver show that over the long run, precious metals have great profit potential. This past year alone, Gold has increased by over 25% and reached record-breaking numbers that are expected to continue climbing. Silver has more than doubled in value this year and expected to do so at least once more in the year to come. Another case in point if you’re looking long-term – Twenty years ago in 2000, Gold was approximately $200 an ounce. If you invested then and are retiring this year, it would give you a 10X return.
Gold has a long history of achieving and growing wealth. Historical data shows that gold climbs in value through the years, especially when economic times are tough, making it a valued addition to any well-balanced retirement portfolio. Financial experts and analysts have often recommended gold and central banks themselves are scooping up gold and silver to protect their wealth. Notably this year, famed investor Warren Buffet removed over 26% of Berkshire Hathaway’s investments in banks like JP Morgan Chase and Wells Fargo and invested $565 Million in Gold.
Protecting Your Assets with a Gold IRA
Finally, taking back control of your retirement savings is made easy. By opening a self-directed IRA, you have the power to make your own investment decisions. Choosing IRS-approved minted coins, bullion, and bars to invest in enables your possession of tangible assets and allows you to decide on where and how you want to secure your investments.
The process is simple and easy whether you’re transferring an existing employer-sponsored 401(k) account or rolling over a portion of your existing traditional, SEP, Roth, or other types of IRA accounts into a Gold IRA. Most importantly you’ll be able to have control as well as more secure options to protect your savings and avoid tax pitfalls by diversifying and stabilizing your retirement portfolio.