How ready are you for retirement? Are you financially secure right now? Do you know about Gold IRA? Read this article to find out more and get a chance to change your future!
What is Gold IRA?
First things first, IRA means Individual Retirement Account, and Gold IRA enables you to store gold instead of the usual money and/or other paper-based assets. An IRA using gold ensures a relatively quicker return of investment, which simply cannot be done through other retirement accounts. For further details, a gold ira wiki is available on the Internet!
Reasons why you should invest in gold
Since ancient times, gold has been deemed as a valuable material, which is the reason why it is called a precious metal. Compared with printed money or paper-based assets, gold’s value is consistent and seldom fluctuates. Why does paper-based currency seem to be on the verge of failing and registering a low value every time? Governments like the US government print their money to pay off their credit card payments/debts. However, doing these decreases the value of money. Another notable example is the huge decrease in the value of paper money happened during World War II where the value of Japanese money during their Philippine occupation was almost reduced to nothing.
Gold’s value, on the other hand, looks like it is set to increase and not diminish over time. As an example, $10,000 invested in gold in the year 2002 would be enough to net you $63,000 today, returning at least 600% of the amount you have invested in a span of only 12 years. If that fact does not convince you yet, you should know that central banks in different countries have started to purchase gold. Bloomberg reports that central bank gold holdings have increased at a rapid rate since 1964.
Not only do central banks buy gold, but countries and governments have started to cash in gold, too. Countries like China and India are known to buy gold for ridiculous amounts, so ridiculous that in fact, 52% of the world’s gold have been bought by them! You could really see how much power gold holds over the economy of the world.
You might be seeing that these whole gold-buying thing only works with established groups and institutions. However, that is not simply the case. Billionaires have also been known to invest in gold. This includes the likes of American hedge fund manager of Paulson & Co., Head John Paulson, and business magnate and Soros Fund Management chairman George Soros. If you will do a quick search of their net worth, you would see that they have a steady increase over time and it is no coincidence that they are investing in gold.
Buy and sell
Buying and selling is one of the oldest financial and income-earning concepts in the world. With this system, you simply buy an item or material, usually at a discounted price, and sell them on a value above what you have originally bought the item for. Doing this repeatedly will let you earn money through smaller net gains. With this type of IRA, you can choose to either buy gold or sell it.
What if you have already an existing IRA?
If you have an existing IRA, you can do a Gold IRA rollover and transfer the contents of your account to a precious metal IRA. Upon doing this, the total funds of your existing IRA will be transferred to you.
Doing a rollover for your precious metal account will help you gain a starting capital. Also, all your previously saved funds will be reverted and you do not have to start from scratch again.
How can doing a rollover help me?
Doing a rollover account is helpful and advantageous in a lot of ways! For one, you can potentially avoid tax penalties to your precious metal IRA account. This can be done by having certified gold IRA custodians who can assist you in setting up the rollover account free of tax penalties. Therefore, it is important to be in the know on qualified custodians or people who can be your contact persons and main technical and financial advisers for your precious metal IRA account. Look for an active custodian rather than a passive one. An active financial custodian does his/her job without waiting for your advice or command. As such, having a more proactive custodian rather than a reactive one can be very vital in the role of facilitating and taking care of a precious metal IRA. This kind of persons often helps you maximize the benefits of having a precious metal IRA while also optimizes the money you have invested for your retirement account.
A rollover account may be considered as one of the best moves to give protection to your retirement savings, which can be susceptible to various economic factors that can lead to major financial losses.
A guide on Gold IRA
IRAs of precious metals like gold may seem like easy money apart from having to shell out large amounts of paper currency, but the truth is, the money you earn from Gold IRA is simply not one that will appear overnight. Like with many other investments, a successful gold investment comes with careful planning. This is where a gold ira guide comes in. The guide is in the form of a “how-to” on becoming successful with gold investments. Usually, these can be provided by precious metal IRA companies, some of which specifically cater to gold IRA investments. These companies allow you to have a basic understanding on how to invest and buy/sell gold. They also assist you in decision-making, but the final word still comes from you.
Like any other investment venture, all of these decisions of creating and/or converting to a precious metal retirement account involve risk. Some of these risks may involve dealings with suspicious custodians or businessmen. On the other hand, you need understand that every financial dealings in the world have risks, and that is something that cannot be utterly avoided. Reading up on Gold IRA reviews will allow you to understand the risks and know how to avoid them better. Below are some of the risks that you have to watch out for:
Risks of being ripped off
This risk comes when you are not physically in charge of the gold. Basically, everything that can’t be physically seen or held is a financial risk because it involves the unknown. If the company or group who holds the metals for you becomes bankrupt, do you have any means to get your investments back? Is there any written contract where it is explicitly stated that the company will be liable for the loss? Are there specific gold IRA rules that need to be followed? These are some of the questions that need to be answered or raised when you are starting up your gold investment retirement account. In short, it is important that you do not hold a blind trust over the company holding your metals for you. To avoid and lessen this risk, you may ask for an update from time to time, and even ask for certain policies to safeguard your investments and yourself from fraud.
One of the defining characteristics of the market of gold, silver, and other precious metal are their volatility. Fluctuation of prices of these precious metals is not uncommon, making for a very hard read even in the hands of a good financial analyst. There is no saying just how much prices will drop or increase and a single economically-significant event may make or break the market. For this type of risk, it is better to employ or consult several financial analysts and read up on market trends. Sometimes, it is also about trusting your gut instincts.
Invest in the future
The financial future hinges on gold and other precious metals (with gold having the most value out of the precious metals). Gold’s value has not diminished since it was first used as a commodity in the ancient times by ancient civilizations like the Greeks and Romans. Gold has become synonymous with the concept of wealth and abundance. The global financial crisis has left many people unsecured of their future and has crippled small and medium-scale businesses. People are slowly becoming unsure of their future even though they have made investments.
With all the craze surrounding precious metal IRA, it is hard not to be attracted to invest in gold, silver, and other precious metals. Investing in gold is not guaranteed to make your life better, but it will surely help you start having a secured one. Keep in mind that you need a good advisor and guide for this type of IRA to be set up. Also, always be reminded that this investment is not without risks, but that it is also not without its benefits. Investing and setting up a precious metal account is not for the faint of heart (in terms of finance and business) as it will definitely need your time and effort to bear fruit. If you have what it takes and if you are not afraid of taking risks, join a gold IRA affiliate program now! Invest in gold and open yourself up to more golden opportunities!