One of the safest and most frequently advised ways to save for retirement is through the use of an Individual Retirement Account (IRA). More specifically, a gold backed IRA is a great way to securely plan for your financial future. Despite their many benefits, investors are still a bit behind on the specifics of this great retirement alternative. So, what should you know about Gold IRA’s and how can they help you secure your financial future?
Why Is It A Good Time To Invest In Precious Metals?
Precious metals are one of the premier investments right now. The driving force behind this is volatility in financial markets largely caused by the current pandemic that has affected every major financial hub across the globe. Precious metals are very risk averse when it comes to volatile markets. Because of this, now is the perfect time to invest in precious metals. Rather than risk your life savings, place them in the hands of a tried and true investment that is built to weather the storm.
What Is A Gold IRA?
A gold IRA is similar to a traditional IRA in that it is a way that you are able to save money for retirement while also taking advantage of some tax breaks. The biggest difference is that instead of owning stocks which can fluctuate wildly during volatile times, you own physical gold, silver, or other precious metals.
Why Is This A Safe Investment?
The reason investing your hard earned dollars into a gold IRA is a safe investment is because it is backed by a physical commodity. When you buy a stock, you are likely only given a digital receipt that you now own it. If this company were to go bankrupt, this digital receipt would not be worth anything and you would be left empty handed. When investing in gold, you get to physically touch the precious metals in which you are purchasing. Because there is always a demand for precious metals, they will always have value. Stock prices are often at the mercy of a very small percentage of company executives and whether or not they make the right decisions. Gold however is always in demand from businesses all across the globe allowing it to retain its value over time. The experts at Goldco state, “While the US dollar has lost 96% of its purchasing power over the past century, an ounce of gold buys just as much today as it did back then. Gold will maintain that advantage into the future, protecting investors against inflation and currency devaluation.”
How Can You Get Started In Investing In Precious Metals?
So, what is a gold IRA and how should you get started? To get started in a gold IRA you will first need to decide the size of your initial investment. Some potential retirees have chosen to transfer all of their funds from a traditional IRA to a Gold IRA to ensure that their hard earned cash is backed by a physical asset. Next, you must select your asset allocation. Gold is not the only metal to choose from. Investors can select from other options such as silver, titanium and platinum to round out a more diverse portfolio.
Saving for retirement doesn’t have to be complicated. By investing in sound securities such as precious metals, you are setting yourself up for success and long term financial security.