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Investing in a Gold IRA
Non-correlated assets, those investments with a performance that isn’t correlated to the rise and fall of the market, can be a valuable addition to anyone’s retirement portfolio.
Well, in times of economic strife and uncertainty, when the world seems to endure crisis after crisis, large economies around the globe are struggling and defaulting, and the entire financial infrastructure is threatened, non-correlated assets can still go up in value, even as everything else comes crashing down.
By far, one of the most popular non-correlated assets to invest in is the precious metals asset class.
From silver to platinum, iridium to rhodium, the options in this class are varied but the big cheese in this group is definitely gold. A metal that once backed the country’s paper currency, gold has been rising in value and popularity for years.
At this point, you have probably realized that putting some gold bullion in your Gold IRA is a no-brainer, but it’s actually not that easy. Did you know that some retirement accounts don’t even allow you to invest in physical gold bullion?
That’s the first thing you need to find out when thinking of buying with Gold IRA Companies.
Gold in an IRA
IRAs are custodial accounts. In order for them to qualify for tax incentives they must be held by an entity other than the account owner.
For this reason, most IRA custodians do not permit the purchase of gold bullion in their accounts. After all, if they did they would have to store it, keep it secure, and trade it when a client wanted to liquidate.
In many traditional IRAs you can buy shares of gold funds and stocks, but that’s not the same as having the actual precious metal in your ownership.
Keep in mind that gold is not a commodity we can grow more of or produce by artificial means. It’s a limited commodity which means once it’s all been mined, there will be no more gold to produce. This gives gold a tangible valuation that other investments don’t have.
It’s not like a company that can split its stock or issue additional shares to dilute the market. It’s not like a growable commodity like soy which can be produced in droves when the climate’s right. Gold is a finite commodity that’s value grows as our supplies run thin.
Precious Metals IRA
You might feel right now like you’re stuck between a gold nugget and a hard place when you want to invest in gold bullion but know that your IRA custodian won’t allow it.
That’s why you need to consider opening a Precious Metals IRA, also referred to as a Gold IRA. With a Gold IRA, not only can you invest in the same gold ETFs, stocks and mining companies that your Traditional IRA allows, but you can also invest in the limited supply of gold bullion in the market.
The Gold IRA custodian will hold the gold bullion for you and keep it secure, allowing you to still benefit from the many tax incentives offered by IRA plans.
Best of all, when you add gold bullion to your portfolio, you’re diversifying in a way that mitigates substantial risks. Not only can the value of gold continue to rise even as all other asset classes are falling, but an investment in bullion is an investment in a real, tangible asset — an ownership in actual gold.
How Much Gold In Your IRA?
Many analysts believe that retirees and pre-retirees should invest as much as 30 percent of their assets in gold in order to create an effective hedge against market and economic risks.
Even if you decide to invest 5 or 10 percent, consider the value of actual bullion over the riskier mining stocks and gold ETFs. You can always supplement your portfolio with added investments in these positions, as well as other asset classes so you get well-rounded protection and opportunities for growth and returns.
Why Buy a Gold IRA
Investing in gold isn’t about creating a lavish lifestyle overnight. It’s also not about prepping your bug-out bag and beefing up your canned goods stash.
It’s about proper retirement account diversification that will ultimately help to protect your financial future. Interested in learning more about a Gold IRA Rollover?
I’d suggest requesting the free gold investment kit from Regal Assets – it will show you everything you need to know about investing in Gold. And it’s free, so you’ve got nothing to lose.
If you think you’re ready to open up a Gold IRA click this link to fill out a simple form. You can set it all up online – hassle-free!
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