Since the economic collapse of 2008, more and more people are adding gold and other precious metals to their financial portfolios. Because the value of gold usually increases in a downturn of the economy, this makes gold an excellent hedge against economic decline. More people who save for retirement are choosing gold-backed IRAs instead of traditional IRAs.
How Is a Gold-Backed IRA Different?
Like other Individual Retirement Accounts, or IRAs, the gold-backed IRA is a retirement account with a variety of tax benefits. The gold IRA is backed by tangible assets, such as gold and other precious metals, rather than just paper assets like stocks and bonds.
How Do I Begin Using a Gold Backed IRA?
If you would like to make a gold-backed IRA part of your retirement account, you can do so using the following steps:
• Investigate different gold IRA companies, such as Rosland Capital. They will help you to open a gold-backed IRA account.
• Find a precious metals dealer.
• Purchase gold, or other precious metals, through this dealer. You can even use money from your traditional IRA.
• Deposit these metals with a gold depository firm or a gold-backed IRA custodian.
Can I Convert My Other Retirement Accounts to a Gold-Backed IRA?
The answer to this question is almost always ‘yes’. Many people don’t realize that they can move money between different types of retirement accounts, such as a traditional IRA, a 401k, or an annuity with no taxes or penalties. There are even Roth gold-backed IRAs for people who choose Roth IRAs.
Although these conversions absolutely can be made with no penalties, it is important to complete them according to the letter of the law. Gold IRA companies will be able to guide you through the process. Once your gold backed IRA is set up, the process of paying into the account is similar to any other IRA and governed by identical laws.
Why Choose a Gold Backed IRA?
More and more people choose a gold-backed IRA for several reasons. First, these IRAs are more recession proof, as mentioned before. Because gold is a tangible asset, it has fewer fluctuations in value.
Second, gold and other precious metals do not depreciate due to inflation. In volatile years such as those we have seen recently, many portfolios will not keep up with inflation. This means that people are actually losing money while trying to save responsibly for retirement. Adding even a little gold to your portfolio will make it more stable and less likely to fluctuate with the ups and downs of the economy.
If you are interested in creating a goldbacked IRA, the time has never been better. A gold backed IRA will give you the security of knowing that your assets will still be there when you need them.