Are you thinking about investing in a Gold IRA? Then you might consider the fact that your wealth could have multiplied since the 70’s.
Gold IRAs and other types of investments would have proven to be a very smart asset during the last half of the twentieth century. In fact, those who had owned about $20,000 to $30,000 in gold during the 1970’s would be sitting on over $500,000 after all the economic upsets in past years. In the face of inflation, deflation, wars, and other crises, gold remained strong. Also, for the wealthy, it is something they transition to when it seems as if hard economic woes are coming around the corner.
A simple economic principle is that when something is being bought in vast quantities, the price goes up. You might find it interesting to know that the price of gold is on the rise, yet again. So what does that say about our current economic situation and the future fate of the US Dollar?
Gold IRAs and the IRS
That is one reason why investing in a Gold IRA or 401k may be a smart call, especially if you already have a pretty hefty retirement fund built already. One of the main factors that make up a Gold IRA is this: A Gold IRA is a fund that is not subject to IRS penalty until the actual value is transferred to the recipient.
How your Gold IRA works is that when you actually make the investment, a third party (usually some kind of investment broker) will hold on to the gold for you as you continue to invest. This means that the IRS will not be able to hold you liable for the gains of that investment, and it is not considered “income”. Then, when you are ready to liquidate your gold assets, you can take possession of that value. So, instead of paying multiple times to the IRS for the value of those capital gains, you only pay them when you are realizing the Gold IRA assets.
Also, it is rather easy to roll over your existing IRA of 401k to a Gold IRA. The entire process will take anywhere from five to thirty days, and it is 100% tax-free. You will not have to pay a dime until you are ready to liquidate those assets and begin your retirement
Considering a Gold IRA for investing your wealth will keep you from economic turbulence and even the penalties of the IRS. There are not many investments that provide that kind of protection.