Americans Turn to Gold IRA for Retirement Protection

  (photo credit: UNSPLASH)
(photo credit: UNSPLASH)

For retirees and those approaching retirement it’s a very nerve racking time to say the least. Americans seeking a stable income during retirement are increasingly diverting funds to precious metals held in Individual Retirement Accounts (IRA), more specifically physical gold, for more stability.

A large percentage of Americans are taking advantage of what is known as a ‘Gold IRA Rollover’ in order to curb inflation and avoid high taxation as well.

Gold IRA as a Smart Investment

Most likely you’ve heard it your whole life, “diversify your assets”. In this day and age diversifying couldn’t be more important than in today’s financial climate. Including IRS-approved physical precious metals in your IRA may give  much more peace of mind going forward.

In 1997, congress passed the Taxpayer Relief Act that allows precious metals as investment eligible for retirement accounts, specifically IRAs. Yet, still a majority of retirement accounts are currently holding stocks, mutual funds, and bonds. These types of assets ‘Paper assets’ are considered to carry the most amount of risk as the stock market is still near all-time highs awaiting a deep correction.

Paper investments such as these can be converted to hard physical assets such as gold and silver as a kind of insurance policy for your retirement portfolio. 

Protect against the following major risks:

  • Devaluation of the U.S. dollar
  • Massive Taxation Increase (overhaul by Biden administration)
  • Debt crises, government could go bankrupt
  • Surviving ups and downs of the markets
  • Economic effects of war, terrorism, and virus breakouts
  • Hyperinflation from money printing

Reviewing some of the industry best gold IRA companies is a great way to learn how simple investing in precious metals actually is. It can relieve your anxiety and provide peace of mind regarding funds set aside for your retirement. 

The most popular of the precious metal IRAs is the ‘Gold IRA’ and it can be a lifesaver. Set-up is free and tax-free with no penalty whatsoever when moving retirement related funds.

Investing in physical gold bullion in this way can safeguard your retirement against all the risks mentioned previously and has helped protect millions of retirees funds for twenty five years.

Gold Price Uptrend

Precious metals like gold don’t easily lose their value. In fact, gold has nearly doubled in value since the end of 2018 @ $1160 an ounce to $2075/oz. By the end of 2020.

Now hovering near all-time highs around $2,000 per ounce in 2022, Gold is poised to make a new all-time high and based on market analyst predictions could reach as high as $3,000/oz. If current negative world events continue.

Not to mention, had you started allocating funds to gold as far back as 2008 when price was averaging $700/oz. your gains would have no doubt been massive.

Credit -  GoldcoCredit - Goldco

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Benefits of a Gold IRA

One huge benefit of setting up a self-directed precious metals IRA is that it exempts you from having to pay any capital gains taxes as the investment gains value. And you are not taxed when transferring funds to purchase the metals (IRS-approved gold, silver, platinum, or palladium coins and bars from an authorized national mint).

Because gold is the most sought after precious metal for investing it is often referred to as a ‘Gold IRA’ but in reality the IRA may contain other precious metals such as silver.

Types of Precious Metals You Can Hold

You can set-up a Gold IRA with the help of a custodian and purchase 1 oz., 0.5 oz., 0.25 oz. , and even .10 oz. coins. Silver is priced lower than gold and must contain 1 oz. U.S. coins along with Royal Canadian versions.

Gold IRA Requirements

Only 24 karat gold bars are approved for IRAs and must be produced by NYMEX/COMEX-approved refineries. The same restrictions hold true with gold coins. They must also be 24 karat gold. There is one exception though and that is the US Gold Eagle coin (22 karat).

Silver Requirements

Coins and bars of silver must be of 0.999+ fineness only to be eligible for holding in a precious metals IRA.

The major advantage of having physical precious metals in your IRA is it affords the ability to have a say in how your money is invested and more overall control over your investments. This is power that you will have which usually wouldn’t be afforded if you kept your funds in traditional IRAs.

When time comes to collect your distributions you can simply cash out and receive a bank wire or choose to get sent the actual physical gold bullion or bars that you can then sell when the need arises during your retirement years.

Gold IRA Rollover Process Made Easy

You may either move your existing Traditional or Roth IRA over to a precious metals IRA, this includes rolling it over from any qualified retirement plan such as a 401(k) with the help of a qualified custodian.

If you have left your current employer or have retired, it is much easier to transfer funds from a 401(k). Although possible, transferring your 401(k) plan from your current employer is more difficult.

You may transfer existing accounts with your current credit union, bank, stock brokerage and other IRAs directly and without headache.

Opening a custodial account is very easy and requires minimal back and forth with paperwork. Once you have funded the account via wire transfer you will then approve the metals together with a representative, who will then secure the metals for your account.

Your physical metals will be held in vaults, fully insured, for example with Brinks storage services.

Gold IRA investing is not a complicated process and there isn’t a long drawn out list of procedures involved. It’s quite straightforward and administered with the help of a specialized advisor who communicates with your current firm to initiate the transfer to your account for opening the precious metals IRA.

With the current negative economic outlook and without any financial crisis relief in sight, those that are nearing retirement or have retired should seriously be thinking about securing their future retirement. Taking this important step is infinitely more important now more than ever. So by using precious metals, which are proven to be less risky than other investment vehicles, you can make sure you’ll have enough funds to cover your expenses and then some when it comes time to take your distribution payment.

By choosing to go through a gold ira company (use the links in this article to get more information) you’ll be advised on choosing a trustee and also the custodian where the metals will be stored. They arrange everything for you so you can sleep better at night knowing your retirement funds are safe and secure. 

Pick up a FREE Gold IRA Investment Guide at GoldIRAInvestingReview.com and get started sooner rather than later.

This article was written in cooperation with GoldIRAInvestingReview.com