Physical Coins & Bars Of Gold In An IRA
Retirement is something that must be considered by every American citizen, whether you’re in your twenties or you’re in your fifties and are looking to retire in the near future. Saving for this vital time in your live is imperative, especially if you have certain standards for the lifestyle you’d like to live once you are no longer working.
One of the top methods used throughout the United States for retirement planning is an IRA, or individual retirement account. This account is a type of vehicle for investments, and can include a number of different investment types such as stocks, bonds, and even gold. USAGold.com says:
“Put simply, gold is money – money that cannot be printed or debased. What better way to save for retirement than with the ultimate savings vehicle — physical gold.”
What Type Of Gold Should You Invest In?
Gold IRAs include other precious metals, such as silver, palladium, and platinum. These are used in place of the traditional investment methods, which use paper-based assets such as cash or stocks. It has been available to the American public since 1997, and holds some very particular specifications in terms of which metals qualify for investment. As state in Investopedia:
“Unlike other IRAs, these accounts require purchasing and storing the physical asset. As a result, gold IRAs require the use of a custodian, typically a bank, brokerage firm, etc., to manage the account.”
Coins and bars can both be used for these accounts, but these materials must meet IRS standards that are set down by the trustee and met by the owner. These precious metals must also be kept in a specific storage containment unit which is also approved by the IRS.
Note: With a quality, reputable Gold IRA company, they will ensure you only put IRS approved precious metals products in your account so you do not run afoul of the rules.
Why Choose Gold?
While there is never a risk free investment, gold and silver investments have seen some stability over the years when compared with other types of investments often made by IRA owners. Owning physical property does offer some protection where other investments falter, only because even if the value drops, there is always the possibility of a future spike, and the asset is still stored safely away. There are various other benefits to investing in gold and other precious metals. SBC Gold explains:
“With a precious metals IRA, you can now transform your retirement investment into a tax-deferred asset. As of 2009, over a 12 year period, gold investments for IRA funds have increased in value 30-fold over traditional investments.”
This type of investment is described by brokers as a way to protect account owners from problems, such as currency fluctuation, recession and inflation.
Weighing The Risks
As mentioned above, gold comes with a set of risks just as any investment does, but history offers a glimpse of what investors have to look forward to if they choose to keep this precious metal in their portfolio, at least in small quantities. The value of gold has certainly seen some dips over the years. In fact, some of the worst declines have come and gone in the last decade. But one thing is certain, it has still managed to come out on top.
When you look back at the value of gold even ten years ago, the numbers are startling, showing an increase in value that is rarely observed in physical asset investments. This factor alone prompts many to choose a Gold IRA as their means of preparing for retirement, but it isn’t enough for everybody.
When choosing a form of retirement plan, the important thing to remember is that research is key. No matter what your broker or well-to-do work colleague has to say about their own investment preferences, you should choose something that fits your investment style and lifestyle. But one thing is certain, and that is, Gold IRAs are showing some major growth across the United States, and it’s never too late to invest.