What Everyone Needs to Know About Gold IRAs
Gold IRAs have recently come to the forefront of the investment world due to their popularization by celebrity figures like Laura Ingraham and Glenn Beck, both of whom have recommended the use of gold IRAs for retirement investment purposes. But, just what exactly are gold IRAs? What does IRA stand for? In this article, we will address these important questions and explore the advantages of utilizing gold and precious metals IRAs.
What are Gold IRAs?
Firstly, IRA is an acronym that stands for Individual Retirement Account, a type of account regulated by the federal government, which financial institutions offer to their clients for the purpose of tax shielding in retirement investments. In essence, an IRA is just like any other investment account, but it also provides tax advantages and comes with its own set of rules pertaining to distributions. A more enhanced form of the IRA is the SEP IRA (Simplified Employee Pension Plan), which is available to employees of companies that utilize it, and to self-employed individuals. Essentially, a gold IRA is a type of IRA that can invest directly in gold or other approved precious metals, instead of paper-based assets. These types of metals can in general include gold, silver, platinum, and palladium. In order to invest in precious metal assets, one generally needs an IRA that is permitted to invest directly in them or have the ability to rollover a self directed IRA into a gold IRA.
The Advantages of a Gold IRA
A gold IRA can provide many advantages to investors. By allowing them to invest their funds in bullion, gold IRAs enable investors to utilize precious metals as long term hedges against inflation. Precious metals like gold are generally more volatile than other traditional hedges against inflation like bonds or commodities, but they also do not have as much power to hedge against rampant inflation like we see in the modern economy. Finally, gold IRAs allow investors to add a significant amount of asset diversity to their portfolios, since precious metals are a unique asset class with their own statistical measures of volatility, growth, and projections. Therefore, this combination of factors makes gold IRAs very attractive to investors who are seeking to intelligently allocate their portfolios by investing in a proven hedge against inflation, introduce an element of diversity, and invest directly in the underlying resource rather than in gold paper stocks. Here is today's gold price per ounce.
Is a Gold IRA Truly Worth It?
This question is likely one you have asked yourself. The answer, of course, is a resounding yes! At the end of the day, the dollars in your wallet are subject to a myriad of different forces, including government manipulation and devaluation. What if you woke up tomorrow and your $100 bill only bought goods that were worth $10 yesterday? It may seem drastic, but this has happened many times throughout history and in the present. Having control of a physical, precious metal like gold gives you freedom and independence from the turbulent tides of inflation and other ticking time bombs. Without a doubt, a gold IRA is truly worth it.