When it comes to preparing for retirement, this is something we know is important. Yet, all the different possibilities and plans make it almost impossible to make the right financial decision. Often, we give up on trying to understand and choose what we feel is right and, despite good intentions, this could see you miss out on thousands when the retirement date finally comes around.
Over the years, an individual retirement account (IRA) has widely been seen as the best solution for retirement since funds grow without the pressures of taxation. For decades, it was seen as the safe solution too since the US economy was a powerhouse (to say the least!). Now, times have changed and retirement plans are in jeopardy thanks to the fluctuating market and the changing value of the dollar. With this in mind, it’s wise to investigate other solutions and you might just find one of the best in a gold-backed IRA account.
What’s A Gold-Backed IRA Account?
If we look back just over twenty years ago, IRAs were restricted to cash-based contributions and this meant our money was being invested in bonds, mutual funds, money market funds, and, of course, stocks. In 1997, the rules changed and suddenly gold, silver, and other precious metals could be included in IRAs.
As we start to get comfortable with 2018, precious metals play an important role in many IRAs and there are more specially-designed gold IRAs than ever before. Since we’ve had twenty years of precious metal IRAs, the process is also now extremely simple and you can have your funds transferred directly from your existing account. With an IRA rollover, you receive the contributions from your existing IRA before then depositing the same money into a gold IRA and this is something people are choosing to do more and more.
Why Invest in Gold?
Although there are other options available in the precious metals market, we’re going to focus on gold here today…so why should you invest in gold and trust your retirement money to this precious metal?
To answer this, we first need to look at why IRAs have been struggling across the last decade. Since the huge financial collapse in 2008, those nearing retirements have lost billions of dollars because their retirement money was invested in stocks, bonds, mutual funds, and other assets that are directly affected by the performance of the economy and the dollar. Therefore, the value of their retirement fund declines whenever the economy fluctuates (which has been often in recent years!).
With a gold-backed IRA account, the main asset is gold which has maintained its value over hundreds of years and will continue to do so in the future. Why? Because, as a commodity, its price isn’t related to the economy, the price of the dollar on the international market, or anything of this degree. Instead, it holds its own price due to the rarity of the material; there will always be a finite amount of gold in the world and simple supply/demand principles tell us that low supply will increase the price of an asset.
In fact, we could even go one step further because it’s commonly known as a ‘crisis commodity’ which means people look towards precious metals when times are tough. As soon as this happens, the price of gold actually increases and outperforms all other investments. In the decade leading up to 2008, the price of the dollar continually fell but the price of gold increased three times over. In the following four years to 2012, the price doubled again and finished at around $1,900 per ounce.
Is A Gold-Backed IRA Account Right For You?
For many, this will be the all-important question because you want to know where your money will be safest in the coming years. Assuming you aren’t a millionaire who doesn’t really need a retirement plan aside from ‘saving some for later’, you should be considering a gold-backed IRA account. While they don’t suit every single financial situation, they are ideal for many including those looking to maintain the value of their assets.
If security is the most important factor in your decision, you would benefit from this account because gold has always retained its value throughout history. For hundreds of years, the price of gold has steadily grown and there’s no reason why this should ever change (remember, it’s a finite resource).
All things considered, the return on a gold-backed IRA isn’t going to be as large as one you might see with stocks over the next thirty years because the price of gold can be hard to track and predict. However, it all goes back to security and retaining the value of your retirement fund. If you’ve been putting money away for the last four decades, the last thing you need is another global financial crisis to come along and destroy your future. Unfortunately, this happened to millions in 2008 and they have been struggling to recover ever since.
Regardless of your age or financial position, we recommend talking through your options with companies and with a finance professional. Although we can provide general advice here, we could never provide personalized advice which is often what you need when building for retirement.
Furthermore, we would also urge you not to listen to all the rumours surrounding gold-backed IRA accounts that say they’re tough to set up. These days, there are numerous fantastic companies who can help you to get started with a couple of easy steps. Normally, you provide your information and the company will do everything on your behalf so there’s no need to worry about any part of the process.
Although it won’t be available with every company, some will actually allow a certain percentage of your IRA to be put towards precious metals so this is another step you could consider. If you don’t want to put everything into gold and you aren’t comfortable trusting the US economy in the coming years, why not split your money for all eventualities?
Choosing A Precious Metal IRA Custodian
To finish this guide, we want to say a few words on choosing the right IRA custodian if you want to make the switch because this will be important. If you make the wrong choice here, you could end up losing out on opportunities and your own money so take your time and only make the jump when you feel comfortable.
Since we live in the age of the internet, feel free to search the web and check for reviews on any potential custodians. Not only this, you can also check with the BBB (Better Business Bureau) to see their rating. Above all else, talk with the company directly and make sure they’re in place to help YOU as opposed to trying to get your money. If you take the time and make the right decision, your financial future will look brighter than ever. Of course, you can also get in touch with your current provider to see if they offer any options with gold or other precious metals!
Our personal recommendation to safeguard your future with gold is to contact Regal Assets, The #1 Rated Gold Investment Company 7 years in a row, Click Here To Request A FREE Gold Investors Kit.