Why Investing in Gold Ira is the Best Way to Prepare for Your Retirement
According to americanbuillon.com, if the young Canadian singer; Justin Bieber invested gold when he was born in 1994, his $384 worth of gold investment could amount to $33,539 these days. This will have an increase of 235%. Gold is least volatile among all the types of investment, the same reason why many people invest on gold ira nowadays. This is a type of an individual retirement account where investors will hold in custody of precious metals such as gold. Hence, instead of papers, they will own physical silver, gold, palladium, platinum and other precious metals.
“Gold is the safest fixed income investment”, says Bill Bischoff from Market Watch. Mutual fund and stocks are vulnerable to inflation. Chief strategist for Fortress Gold, Edmund C. Moy considers gold ira as a diversified retirement portfolio. “Gold smoothens out the risk of long term investments, making it the best option for retirement investment, he said.
There are many benefits that gold ira has to offer. One is diversification. Instead of just putting all your “eggs” in one nest, you have the opportunity to diversify you holdings. It also protects you from the stock market’s volatility. Paper and stock assets will make your retirement account suffer greatly, but not with gold ira.
There’s no need to fret on declining dollar as well. This is one reason why some people invest on gold as a hedge to counter inflation as well as declining dollar rate. Declining dollar price results to less purchasing power and if this will continue, the value of the paper heavy portfolio will continue to shrink. Hence, this will have a very low value by the time of your retirement. But your buying power will be preserved if you have invested on gold ira.
Tax benefits will also work on your favor since you get to enjoy the same tax benefits you get with a conventional ira. Hence, you will be able to take advantage of the benefits that come along with precious metal investment apart from the tax benefits that you are getting.
But more than the security, gold ira has a significant growth potential. And this part won’t be affected by any forces in the stock market. This is the reason why there is an ever increasing global demand of gold as well.
However, according to Gina Roberts Grey of Investopedia, it is still important to consult a financial advisor to know how gold ira will fit in your portfolio’s over all goals.