Buying gold for your retirement is certainly a smart idea. More than ever, it’s time to diversify your retirement portfolio with alternative investments. And the time is right for precious metals investing because the market’s hot and it’s only going to get hotter.
Investing in gold is intelligent because it’s a solid way to make returns in recessionary environments and strong economies. Even more important, the US dollar is weak, economic conditions are unfavorable, and gold thrives in these environments.
There are many reasons why you should invest in a gold IRA. I’d like to tell you my favorite reasons below, so stick around to discover my beliefs about this topic.
Gold’s Intrinsic Value Is off the Charts
The pound in the UK and the dollar in the US are on shaky ground these days. On the other hand, gold is a solid investment. And it’s much more stable than currencies that are backed by the good faith of their government.
Why is that? As an example, the United States has spent the past year and a half borrowing money from the Federal Reserve. They’ve done this in an effort to stimulate the economy because of the shutdowns due to the coronavirus pandemic.
Overall, this has caused the US dollar to weaken. It became less valuable since they printed so many new dollars and flooded the market with currency.
By flooding the market with borrowed money, it reduced the value of the US dollar. This makes prices go up and it creates more inflation.
When paper money is printed regularly, it creates a situation where it’s less valuable. And as mentioned, this is the cause of inflation. When least expected, the price of a dozen eggs jumps from three dollars a dozen to seven dollars a dozen. And this will continue as long as we keep borrowing money from the Federal Reserve.
What about investing in gold?
Smart investors see Federal Reserve printing as a wealth-building opportunity. They recognize that the intrinsic value of gold is on the rise due to extrinsic factors.
On the one hand, there is only so much gold that can be mined every year. So, this is a finite resource, to say the least. Combine this with excessive government printing and you have a recipe for adding value to gold IRA investments.
Are you an intelligent investor?
The smart way to buy precious metals is through a gold IRA. It has tax benefits and other long-term advantages that I’ll tell you about below. When you’re ready, initiate a gold IRA rollover to get started with this investment strategy immediately.
Gold IRA Tax Advantages Are Astounding
Gold is an excellent investment for many different reasons. But in particular, investing in this precious metal for retirement provides tremendous tax advantages. Gold IRA accounts are set up as a traditional IRA or Roth IRA, and each has its own benefits:
- Traditional gold IRA accounts are funded using pretax dollars. This is money taken directly from your paycheck before it’s taxed by the IRS. This will help you grow your overall retirement account much faster.
- Roth gold IRA accounts are funded using proceeds that were already taxed. The big advantage is you get to keep everything earned in a Roth IRA account. You will not have to pay taxes since you paid them before funding the account.
- You can continue making yearly contributions into a gold IRA account until you reach 70 ½ years old. This means you get to continue growing your retirement account investments well into retirement.
- For a traditional gold IRA, when you finally begin taking distributions, you must pay the current marginal tax rate. You could end up paying less than you would have if you paid your taxes earlier.
- Investors have the opportunity to lower their overall adjusted gross income each year with a traditional gold IRA. By taking money directly from your paycheck and putting it in your IRA account, it’s like you never earned the money. This lowers your yearly tax bill and postpones payment until you take distributions later on in life.
Gold’s Historic Price-Performance Proves It’s Worth
How can you determine if an investment is successful over the long term? As far as gold is concerned, the best thing to do is track its performance over time. This will tell you if gold has performed successfully from a historical standpoint.
As an example, in 2001 the price of gold was only $271 an ounce. This may seem like a lot of money, but it’s actually much less than the current value of this hot commodity. In fact, the price of gold is $1810 right now.
Compare those two numbers. In 20 years, the value of gold has risen by 568%!
Do you understand the importance of tracking historical price movements? You should do this for every investment, but in particular, you should focus on tracking the value of precious metals.
Why? This alternative investment is one that many investors often overlook. And it’s a huge mistake. Because investing in gold and other precious metals is a great way to boost your overall retirement income.
And another thing…
You’d be crazy to ignore a 568% return over a 20-year timeframe. Very few investments make big returns consistently, so you have to really keep that in mind.
Are you ready to begin investing in a gold IRA? Do yourself a favor and start now, because the sooner you jump in, the faster you’ll grow your retirement account.
Bottom Line
At this point, and it shouldn’t surprise anyone that a gold IRA is an amazing retirement account vehicle. This investment strategy could be the difference between a barren or fruitful retirement. And it’s an excellent way to create a diversified portfolio with alternative investments.
No one knows what the ultimate results of the coronavirus pandemic are just yet. We seem to be turning the corner, but who knows what else could happen?
You need to be prepared in case the worst were to happen. Precious metals IRA retirement investing puts a valuable physical commodity in your possession. And it’s a phenomenal way to grow your wealth consistently year after year.
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