Benefits of Investing in a Gold Backed IRA

It has been some time, well 23 years since the IRS gave its authorization to the creation of GOLD IRAs in 1997. However, the majority of the American public still seem unaware that the Taxpayers Relief Act meant that they could take some or all of the funds from the retirement accounts they had to purchase investments in precious metals like gold.

What if you are not in that number and are one who knows about the option you have to invest retirement funds into gold but have yet to take the chance and roll with it? What is holding you back? Perhaps you simply don’t realize the great benefits that can come from such a decision. Let’s help you out by highlighting some of the main benefits of investing in a gold-backed IRA.

You Get Control Over Your Future

The biggest and most pertinent benefit that’s worth highlighting about having a Gold IRA is that it gives you peace and mind and a sense of security. How? You have greater control over your future from a financial standpoint and a rosier retirement. Control is one of those things that everyone strives for in life and when you have physical gold IRAs to your name, that’s what you get – control. 

You get control by knowing that you don’t need to worry about the money you have saved losing value, because of the historic records we have about gold and its value.

When it comes to inflation, gold has always either outperformed or kept up with the pace for the accepted rate of inflation in the long run. One of the best ways to illustrate this is by giving the example that in 1917, a piece of gold that cost $20 would allow you to purchase a fine tailored suit in NYC or London. 

Fast forward to 2017 and the same gold piece had increased in value and was worth more than $1,100 per ounce. That same piece could still buy you a suit in NYC or London. 

So, you might be thinking “Wouldn’t it be best to have the physical gold in your home?” Well, no, because when you start investing in physical gold to keep in your home, you need to improve the security of your home. This is why it would be best to invest in a gold IRA instead.

When you want to invest in Gold IRAs, you need a good investment company that specializes in it. If you’re wondering how to pick the top gold IRA investment company? Follow the link. 

Disaster Insurance for Any Portfolio You Are Building

You probably have car insurance, homeowner’s insurance, life insurance, and health insurance, right? These are great for protecting you and your family from various scenarios such as car accidents, thefts fires, premature death, and unanticipated deaths. It’s almost ingrained into us that we should take these kinds of measures to protect ourselves and our loved ones.

What about your financial future and your portfolio? Do they not need the same protection from unanticipated calamities? Having a Gold IRA is one way to ensure that you do have that safety net level of protection. 

A High-Quality Retirement Portfolio with Effective Hedge

You will find that most good financial advisors will only recommend that you keep the retirement assets you have in a selection of bonds and stocks. However, the downside of this tactic is that you are only exposing yourself to two different asset classes that are both closely related.

Comparatively, gold is uncorrelated to either bonds or stocks and therefore does not decline when they do. Rather, it has a beta that is sufficiently different to provide you with a powerful hedge you can keep against your primary asset classes of bonds and stocks. You need to also remember that stocks can crash and burn and drop by as much as 50 or even 60%. Gold, however, will not crash or burn and become valueless, because it is a physical asset. 

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