A Few Reasons to Consider Opening a Gold Individual Retirement Account
An Individual Retirement Account should be a part of everyone’s plan for retirement. There are tax benefits to having this type of account, and depending upon whether you choose a traditional IRA or a Roth, you will realize these benefits today or after you retire. However, many people choose to open an IRA and fund it with stock index mutual funds or long-term treasury bills. But there is an alternative to this. You can open a precious metals IRA, and there are good reasons to consider this.
Precious metals create a diverse portfolio
If there is one thing important about retirement savings, it is that it has a diversity of investments. This is conservative, but that is what you want with your retirement money. If you put all of your money into the stock market, it is possible that you could lose a large chunk of your retirement savings right before you retire. Precious metals, especially gold, offers a counterbalance to other investments. If the stock market falls, gold will generally go up.
Gold protects against currency
Paper money doesn’t have a long history of stability. At the very least, there is the distinct possibility of inflation, and sometimes this inflation can enter double digits for months or even years. Not all investments keep up with inflation, but gold has a history of doing this. It is tangible and has an inherent worth that paper money does not have.
Although a gold IRA is a good idea, there are also misunderstandings such as a Home Storage Gold IRA. A Home Storage Gold IRA is not allowed. Your gold must be stored by an IRS approved company. It is also important to understand that you will need to purchase your gold in forms that are approved by the IRS. This means coins and bullion from an approved mint. There are companies who offer the services of purchasing the proper gold and storing this gold for you.