Investing is a confusing topic especially due to the uncertain nature of most investments and the varied opinions from experts in the field. There are so many investment plans to think of from rental properties and company retirement plans, to the buying and selling of gold. Going for a less obvious opportunity such as a gold IRA is a good option in comparison to a standard retirement plan due to the benefits it offers you.
Gold is a vital metal that is scarce in nature and despite price fluctuations, it is a great long-term asset as history has shown. The assets in the IRA account can change as the economy soars or drops. Companies like Lear Capital offer you a great way of saving up by reducing the risk of your investment portfolio as you save in valuable metals instead of cash which could lose its value.
Benefits of an IRA account
Taxes – The standard retirement plan is directly connected to where you work; your employer contributes a sum based on your income. In comparison, an IRA account provides more autonomy and tax advantages. You also have the liberty of setting how much you want to invest.
A traditional account requires you to pay taxes when you withdraw your money but with an IRA gold account, you are able to roll over the money by taking the money out of your standard account and depositing it into a custodial IRA account, where you can re-deposit the money within 60 days to avoid paying taxes. It offers the investor the option of rolling money over for 12 months.
Safety – A traditional 401K has clear guidelines on how much each employee can contribute and most contributions are made before paying taxes. The employer matches the amount to what the employee contributes. Generally, even though most 401k plans have grown, they do carry a certain level of risk as they are invested in securities. You might argue that these stocks are quite stable but a phenomenon like a recession and other economic issues, can cause stock values to plummet.
Most standard retirement plans are not insured by the government. Since I was working for a company I opted to take my money out, for the fear of it closing down and I deposited the cash in another plan even though I lost my employer contributions. I realized that by investing in an IRA account, I see a higher return and less risk based on statistical data even though the market can be volatile.
Diversification – An IRA account is much more convenient as you can hold your savings in different forms of metals like Palladium, Platinum or Silver which allows for a diverse investment portfolio. Investing in Gold provides you with an insurance policy against inflation as gold moves in the opposite direction of cash. The balance of gold and cash ensures a great investment plan which is spread out over a long period of time.
My father invested in Gold too and yes it did carry risks as he initially lost a portion of his investment, but he eventually was in the green as prices rose. Any investment will carry risks whether it is a standard investment plan or a gold IRA but the latter has benefits that surmounts its drawbacks. If you are looking for a smart choice of investment, you should seriously consider adding Gold to your portfolio.