More and more retirement investors are researching the possibilities in a gold IRA. This may come as a shock to many casual investors because the market has appeared to make significant gains since the recession that began in 2008. There are good reasons, though, to be dissatisfied with these gains and to prepare for an uncertain future with solid assets such as gold.
Why Retirement Investors Are Looking Into Gold IRA's
Smart retirement investing is not easy. You have to create a portfolio that will consistently grow throughout different economic periods in the future. Most portfolio managers try to arrange this by investing widely in diverse index funds among other assets. These combinations of aggressive and more conservative stocks and bonds generally make returns that are considered respectable.
In the present economic climate, however, there are problems with these types of returns. They may look good on paper but they are not keeping up with the decline of the US dollar. At several junctures in the last few years, the US government has essentially printed money while trying to service its debts and cover its other expenses. While the numbers released demonstrate that this has not resulted in significant inflation, many people can see that the dollar has weakened considerably as a result of this infusion of trillions of dollars into a struggling market.
The environment created by these government actions has helped some active traders to borrow money for virtually no interest while making large gains with their investments. Observant retirement investors, on the other hand, have seen that the real value of their investments is not keeping up with the expansion of the money supply.
Gold Is the Best Asset to Hold Right Now
Any asset in your portfolio may or may not perform well on a given year. Most important, though, is the ability of a stock or a bond to maintain its value in terms of real US dollars. The dollar may strengthen or weaken over time. At the present time, the greatest concern among investors is the virtual death of the US dollar due to an inevitable decline in value due to inflation. Not many stocks are keeping pace with this decline, growing in value at the same rate as inflation or even better.
Certain assets, such as gold, have the natural ability to perform well when the dollar weakens. Two important facts support gold’s almost unique capacity to unerringly keep up with the inflation that results from a weakening dollar. First, gold is valued in US dollars. Second, gold exists in a finite quantity that increases only slowly. Dollars, on the other hand, are generated with just a few punches of computer keys at the Federal Reserve.
Consequently, having gold in your IRA prevents your portfolio from falling victim to recent and future decisions by the federal authorities to jeopardize the strength of the dollar. With every additional ounce of gold among your IRA holdings, the overall value of your present and future wealth gains additional support.
Gold Custodians and Assets
There are many ways to include gold in an IRA. You could invest in companies that mine this and other precious metals. You could also buy shares in the growing number of mutual funds and exchange-traded funds that base their wealth in precious metals. Finally, you could actually purchase physical gold bullion with your retirement contributions.
Several companies are prepared to act as custodians for such gold IRA's.
What If You Do Not Have a Gold IRA?
It is common for people to feel locked into their retirement accounts. However, it is not that difficult to convert any IRA into a different format or even change custodians. It is worth the effort that is involved in a gold IRA rollover because the consequences of taking these accounts for granted will probably be severe.
Making a Gold IRA Rollover
Begin the conversion of your under-performing IRA by investigating and researching the various companies involved in this section of the market. Regal Assets, as well as other potential custodians, is more than willing to discuss your options and the possible results of rolling over your finds into an IRA based on gold.
Whichever custodian you choose can walk you through the process of rolling retirement funds over into a gold IRA. It is critical that you allow professionals to help you with these procedures because mistakes can cost you in taxes and other penalties. A professional gold custodian will ensure that your old custodian writes a check directly to the new account so that the federal government does not interpret this withdrawal as income.
Making the Gold IRA Rollover Decision
There is no question that this is a radical step. Normally, investment decisions that depart from routine deposits and withdrawals are suspect. However, there is no doubt that you are living in a financial environment that may have never been experienced before in the United States. Given the contrasting performances of the US dollar and gold in the last decade, this radical step is necessary to preserve your wealth and guarantee a certain quality of life during your retirement.
With retirement, you will be losing much of your ability to recuperate from investment mistakes because you will not have the steady income of a job to help you cover expenses. You will be relying entirely on the wisdom of previous investment decisions. Gold in your IRA will provide your wealth with a sturdy foundation that can withstand a variety of economic troubles.