More and more investors are looking to hedge their portfolios with precious metals like gold to protect their investments and savings. Can rolling over your retirement plan help you safeguard your retirement?
The average American’s IRA includes stocks, bonds, and mutual funds and is administered by large financial institutions. These traditional vehicles for wealth protection in an IRA do not provide any assurance. Case and point–the importance of diversifying in entirely different asset classes was amplified in both the 2000 and 2008 financial crises. In 2008, the stock market dropped nearly 40%, real estate values plummeted, unemployment surpassed 10%, and the dollar weakened. It was evident, that although stocks, bonds, and real estate are different asset classes, during a crisis, all three, were highly correlated. This perfect storm evaporated retirement savings and nearly wiped out the safety net of many hard-working Americans.
Mainstream media, government tax breaks, employers and large financial services companies have often, and continue, promoting investment in the stock market and real estate as a means of accumulating wealth. However, these institutions neglect to emphasize wealth preservation by investing in precious metals. Since 2000, investing in Gold IRAs has a strong record and grown popularity due to its stability against volatile market conditions.
Everyone has some insurance to protect what matters the most. Similar to home, auto, and life insurance, a Gold IRA is your retirement savings insurance. True portfolio diversification includes precious metals to immune your savings from steep stock market crashes, currency devaluation, inflation, and deflation. That is why an IRA holding precious physical metals is an important option to ensure full diversification.
A Gold IRA is an IRS-approved retirement account that functions in the same way as any regular IRA. Unlike conventional retirement accounts such as IRA and 401(k) accounts that limit your options in standard paper-based assets such stocks, mutual funds, and bonds, a Gold IRA allow you the added benefit of investing in physical Gold coins and bars and other IRS approved silver, platinum and palladium metals.
Benefits of Investing in a Gold IRA:
Gold is respected through the world for its value and rich history, which has been interwoven numerous cultures for thousands of years. Central banks have been notorious for scooping up ample precious metals like gold and silver to safeguard their monetary funds. Here are a few more advantages to adding Gold to your IRA or 401K.
1. Gold is A Store of Wealth
2. Balance of Risk and Reward
3. The Weakness of The US Dollar
5. Geopolitical Uncertainty
6. Gold Is a Private Form of Wealth