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The Gold Standard for Retirement

February 04, 2014

With debt at an all-time high, many people are anxious and looking for ways to protect their investments – especially the investments meant to supplement their retirement. For those who hold and individual retirement account, a degree of safety can be found in a gold IRA.

What is a Gold IRA?


A gold IRA works the same way as a standard IRA account – however, with a gold IRA, people can hold precious metals like gold, silver, and palladium in their account for diversification. Physical gold coins and bars are stored in an IRS sanctioned depository, rather than being held by the IRA owner. While investors aren’t able to squirrel away gold in safety deposit boxes, they can feel assured their gold is secure, and cannot to be lost or stolen. Once retirement age is reached, the metals are shipped directly to the investor.

What Kind of Gold Can I Invest In?


Section 408(m)(3) of the Internal Revenue Code allows IRAs to own certain precious metals – in coin or bullion form – as long as they meet applicable fineness standards. Case in point, an IRA can own American Gold, Silver, and Platinum Eagle coins as well as Canadian Gold Maple Leaf coins ­– but not the South African Krugerrand, as it’s only 22-karats and doesn’t meet purity standards.

Why Should I Invest In Gold?


Investing in gold can help you create a safe future, one where you can spend your golden years enjoying life rather than pinching pennies. Here are the top reasons why a gold IRA is a wise choice:


  • Diversification: Diversification is arguably the most important component to help an investor meet their long-term financial goals while minimizing risk. Portfolio protection is particularly important as the last several years has seen global economic uncertainty and stock markets more volatile and risky than ever before. Investing in precious metals is an easy way for an investor to diversify their portfolio, protecting it from the decline of other markets.


  • Inflation: Inflation’s a nasty thing. As each year goes by, more dollars are required to buy everything from food to gasoline. Thanks to inflation, the dollar’s value is ever-changing and the Fed is forced to keep churning out paper currency to keep up. Precious metals, however, tend to hold value above inflation as more gold, silver, etc. can’t be made on demand. Gold is essentially recession proof! Having investments in gold and silver can help an investor maintain their purchasing power even as the dollar declines.


  • Liquidity: Besides being an outstanding source of value, gold is considered a liquid asset as it can effortlessly be converted into cash or goods when needed.


  • Tax Deferred Growth: One of the best reasons to own physical precious metals through a Gold IRA is the ability to grow your investment on a tax-deferred basis. This means you no taxes are paid until the investor takes possession of the gold!


Sometimes making an investment can feel like a roll of the dice. If you’re worried your retirement portfolio is a gamble, consider adding gold to your IRA – it’s always in high demand and minimizes risk by maintaining its value. When it comes to retirement, you want to make sure that your money is there, and gold is the perfect way to do just that.

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David Parkman is a financial writer for American Bullion and enjoys saving money almost as much as he does spending it. When retirement comes, he plans on using his nest egg to travel the world with his wife.


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