Are you thinking of investing in a gold IRA rollover to secure your retirement? Without proper planning, you face the risk of being forced to work full time during your retirement years. There are many people who didn’t properly invest or prepare for retirement who have to work full time just to pay for food and water. You definitely need to take your retirement seriously because if you’re not currently retired, your day for retirement will be here sooner than later.
As the Dollar declines in value and people begin to lose faith in the American government, individuals with retirement accounts are looking for more secure ways to plan for retirement. Throughout the history of mankind and all over the world, people have a history of running to gold to secure their financial futures. This articles was created so you can have a guide and evaluate whether a Gold IRA Rollover is a good investment for your retirement portfolio.
What is an IRA?
IRA stands for individual retirement account. An IRA is a retirement account that provides tremendous tax advantages. Your main goal for retirement should be to experience the highest standard of living without having to rely on the government or worried about a huge tax penalty. The more money you get to keep, the more decisions you control for you and your family. Therefore, we want to give you information that may help you make your retirement and overall life more secure.
First thing you should know is there are three main types of IRA accounts. The three main types are roth, rollover and traditional. Each type provides different advantages to you as an investor.
– First, a rollover IRA is intended to rollover money from a retirement plan. With this type of IRA, you would move your money from an employer sponsored plan which may include a 401(k) into an IRA.
– Another gain is the ability to make contributions in your retirement account that you can deduct from your taxes. You may also find yourself in a lower tax bracket while increasing your retirement earnings. In addition your contributions can increase without scrutiny from Uncle Sam until you acquire them in retirement.
– Your other option is to make contributions with after tax money or take home pay. With this option which is called a Roth IRA, your money may potentially grow tax-free without having to worry about the government when you choose to use your money.
Gold Is Tried and Trusted
For thousands of years or as far as our historians can remember, gold has been a trusted resource. On the other hand the value of the dollar or coins are based on the health of the American economy. Gold is a way to enjoy your wealth in the short term and create wealth for your family for generations to come.
Below I’ve included two charts. One for Gold and one for the value of the dollar.
First you’ll notice that the value of the dollar declined. This is important for you because when you retire you would realize less, freedom, less security and your retirement could become jeopardized. We all need to be very concerned! Needless to say, you are playing “Russian Roulette” if you rely on the American Dollar.
On the other hand I included a chart I created using pricing from Nasdaq for gold. You’ll notice that the price of gold has remained stable and increased for the past 10 years. You can feel safe and secure while investing in Gold.
Limited Supply Of Gold
Do you remember the time of year when people are lined up outside the door of Best Buy or Wal-Mart? The time of year known as “Black Friday”. You ever wonder why so many people line up at that one tie of the year? I’m sure you are aware this because of limited pricing that you can get only once a year. In economics this is known as supply and demand. As supply for a good or service or price decreases the price increases because it becomes rare. Since the supply of such low pricing only happens once every year, demand drastically increases at this time.
This same rule applies to precious metals. One of the reasons gold is a secure investment has to do with the limited availability of this resource.
Do you remember when gas was only 30 cents per gallon? For the price we pay today for one gallon of gas we could have received 10 gallons of gas for the same price. I can remember when one of my friends would ask me for a ride. I had a car that had a carburetor and a v8 engine. It didn’t run on gas it drank gas like a fish. For five dollars I could take my friends across town and back and still feel good because I had gas left over. How far do you believe you could get in a gas guzzling v8 engine today? Well part of the reason gas prices are high has to do with inflation.
Gold is an excellent hedge against inflation. The price of gold has a positive relationship with the cost of living. What this means is when the cost of living increases, the cost of gold increases as well. Imagine what it feels like to notice the price of gas increasing is going to have a positive effect on your retirement. I’m here to tell you it feels great!
The Crisis Commodity
When world tensions start to arise people look to invest in gold. Also, as people lose trust in Uncle Sam, people look to invest in gold. Gold is something secure you should include in your portfolio to hedge some of the other risky investments.
Deflation happens when prices fall, money becomes scarce and people lose confidence in the economy. This happened during the “Great Depression” of the 1930’s. Unfortunately, we realized another depression during our time and lots of people lost their homes. I’m sure you may know someone who lost their home during this time. Gold is negatively related to deflation. During an economic downturn, the purchasing power of gold soared.
Minimize Risk of Your Retirement Portfolio
As the saying goes, don’t place all your eggs in one basket. Or don’t count your eggs before they hatch. Gold is an excellent way to diversify your retirement portfolio by minimizing your risks. Thereby, moving your eggs to different baskets.
Gold is a secure investment. You definitely need to make sure you are protecting your retirement. Click the link for a list of the Top 10 Gold IRA Rollover Companies you can use to secure your financial future.