Studies show that many Americans are well behind on their retirement savings. Those who have money put away may have portfolios that are not suitably diversified. You can prepare for retirement by opening a gold IRA that invests in precious and other metals.
Why Consider an IRA
As an investor, you have numerous options when you are saving or retirement. On top of your employer-sponsored plan, you should also consider an IRA. This is an additional source of retirement savings that can help you reach your goals. IRAs are a great move when you are saving for retirement since you get tax advantages that help your money build over time.
The great thing about an IRA is that you do not have to pay capital gains tax on your investment earnings until you are able to withdraw from the account. This allows your money to keep compounding over time, helping it grow along with the market. The deferred capital gains tax money keeps working until you withdraw the money from your IRA.
Your Money Must Stay in an IRA
The downside of an IRA is that you cannot touch the money until you reach the age of 59 1/2. If you take the money out before that you will need to pay a 10% penalty, the deferred state, and federal taxes, and capital gains taxes. The flip side is that you need to begin taking money out when you reach the age of 72 and must take an annual required minimum distribution.
Why a Precious Metals IRA Helps You
Putting some of your IRA into gold is a way to not only hedge against inflation but also to grow your money over time. A gold IRA is a sound investment strategy to both diversify your portfolio and hedge against inflation. Precious metals perform well when the dollar is eroding in value. According to the experts at Goldco, “Gold has seen a 9.02% annualized average since the beginning of the century. It has not only made great gains over the past two decades, but it also continues to act as a great hedge against inflation and financial crises. When financial conditions show signs of deterioration, as they do now, investors flock to gold to protect their assets.”
Gold is currently in a long bull market. The prospect of inflation and continued government debt has sent traders piling into gold and other precious metals. The price of gold has surged towards $2,000 per ounce in a bull market for the commodity.
Hot to Follow the Price of Gold
The gold market is relatively easy for investors to follow as it trades continuously. Investors can check real-time prices on CNBC.com or the website of the NYMEX, where gold futures are traded. There are a number of free charting services where you can plot the technical indicators of gold. Since gold is a closely followed market, it is easy to find expert advice from traders and analysts.
Gold trades around the globe 24 hours a day. While many people do not find precious metals as exciting as stocks, they can cut your risk and grow your portfolio. Do not let the fact that you are not investing in a particular company keeps you away from an attractive long-term asset.
Consider opening a precious metals IRA today so your money can grow for retirement.