As someone looking to build a retirement nest egg, it’s best to accumulate wealth comfortably using the best assets. You can’t rely on the meager amount of money given to you by the Social Security Administration. And you can’t count on other people to help take care of your retirement future.
Today, I’d like to tell you why buying gold for retirement is a good idea. As soon as you begin investing in a gold IRA, you’ll be on the path to achieving real success. And you’ll also minimize your exposure to the US dollar while growing your retirement account exponentially.
Are you trying to figure out the main reasons why buying gold for retirement is a good idea? Keep reading to discover the truth in plain English.
Opening a Gold IRA Is an Amazing Way to Add Diversity to Your Portfolio
Investors truly understand the value of diversity during times of economic struggle. Hopefully, you’ll learn to diversify your portfolio by learning from other people’s mistakes. Other investors tend to lose money in stocks, bonds, and mutual funds all at the same time. Why? Their portfolio wasn’t properly diversified.
Real diversity requires more than just separating your stocks and bonds into different business sectors. It’s about adding diversified assets to your portfolio including gold, silver, platinum, and palladium. You might want to even consider adding Bitcoin and other cryptocurrencies.
What happens when the US dollar struggles? During times of inflation, the value of gold and other precious metals tends to increase.
As an investor, this means your precious metals will gain value as the US dollar loses value. This is a great way to offset the damage caused by inflation. And it’s a wonderful way to preserve your wealth for the future.
Guess what else? The value of precious metals tends to increase when the stock market falters. In 2008, when the stock market crashed along with the real estate market, people were really scared. But smart investors began putting their money in gold and other precious metals. The value of these metals took off like a rocket and increased tremendously by hundreds of dollars an ounce.
I’m not sure how you feel, but I’m always a big fan of owning the hottest commodities on the market. This is especially true when the stock market and real estate struggle. To acquire a true measure of portfolio diversity, it’s time to open a gold IRA account. Learn about the top gold companies by clicking here to read my detailed review.
Gold’s Overall Performance Is Absolutely Outstanding
This may not seem right for an investment, but the value of gold has steadily increased for the past 50 years. As a matter of fact, since 1971, the value of gold has increased on average by 10% per year. Let me say that again so that it really sinks in. The value of gold has increased by 10% per year on average for the last 51 years.
Did you get that? This may seem like an impossible situation but it’s the truth. Now I’m not going to tell you that gold is going to go up 10% every year. But when you take the average of all 50 years and divide it out, investors earned about 10% per year.
More than likely, the value of gold will trade within a specific trend. And then a major event like a coronavirus shutdown will cause the value of gold to skyrocket. It doesn’t have to be a shutdown to stimulate the price. The housing market crash, a financial market crash, or other negative sentiment could cause the value of gold to rise.
I just want to impress upon you that the value of gold has increased exponentially over the years. I do not want you to miss out on this amazing investment trend. Because the truth is, it’s much more than a trend. It’s a way for future retirees to beat lifestyle inflation, every day inflation, and other economic events that typically sap your wealth.
I don’t know about you, but I find it impossible to consistently make 10% returns year-over-year. It’s practically unheard of and most people do not realize that gold is putting out this level of returns.
Do yourself a favor and get started investing in precious metals right away. You should do so within a precious metals IRA account. To find out more about these incredible retirement assets, please click here to read my review of the best of breed.
The Demand for Gold Has Never Been Bigger
The reason why buying gold is important is because there is a huge demand for this incredible commodity. This great demand means the value and price will continue to increase as long as it’s needed.
Many of the biggest countries in the world purchase gold by the metric ton. These countries are stockpiling this commodity to protect themselves in case they need it. You never know if or when a particular currency may fail. Having all of this gold on hand helps to preserve the United States’ wealth over the long term.
What countries are heavily stockpiling gold at the moment? Some of the biggest and best nations across the land are involved and they include:
- China
- France
- Germany
- India
- Italy
- Japan
- Netherlands
- Russia
- Switzerland
- United States
It’s no surprise to learn that so many companies are investing in gold and other precious metals. There is a great demand for gold because it’s becoming scarcer with each passing year. And silver and other precious metals are used in important commodities like medical devices, computers, and cell phones. So, their value is continuing to increase over the years as well.
Learn about the top gold IRA companies by reading my detailed review.
The Tax Benefits Are Tremendous When You Open a Gold IRA Account
Some people call these tax benefits IRS loopholes. This technically isn’t true although it feels like you’re pulling the wool over the IRS’s eyes. In fact, they’ve created these tax benefits for future retirees just like you when they created IRA accounts.
There are basically two types of self-directed gold IRA accounts that you can open. You can open a traditional gold IRA or a Roth gold IRA.
What’s the difference?
You’ll find your traditional IRA account using tax-deferred income. This is income you generate throughout the year at work, running a side hustle, or producing in your family business. This money comes directly off of your yearly income as long as you deposit it into your self-directed IRA account.
As an example, if you make $70,000 this year, but you deposit $5000 into your self-directed IRA, you’ll only pay taxes on $65,000. This benefit is tremendous because it lowers your yearly adjusted gross income and lets you use this money to grow your wealth and retirement.
A Roth self-directed IRA account is funded with post-tax dollars. You’ve already paid taxes on this income, which means it’s yours to keep. And the IRS truly means that it’s yours to keep. Because anything earned in a tax-free account is yours to keep.
As an example, let’s say you deposit $250,000 into your self-directed Roth IRA. You invest this money heavily in gold, silver, platinum, and palladium. Over the course of the next 20 years, this account doubles in size. It’s now worth $500,000.
Guess what? Because it’s a tax-free account, you get to keep every penny that you earned within it. You do not have to pay taxes on any of this income because the taxes were paid in advance.
This may not be an IRS loophole as some people like to say. But it’s definitely a major tax advantage for the little guy. This is amazing because the little guy needs this kind of tax break more than ever in today’s difficult economy.
Sleep Safely at Night As a Gold IRA Account Holder
You may not know this yet, but this is important information to understand. As a gold IRA account holder, you must keep your precious metals stored in a certified vault.
Many people are under the false impression that they can store their precious metals IRA investments at home. Nothing could be further from the truth because the IRS mandates that these precious metals are stalled in a designated IRS-approved facility.
On average, this will cost the typical investor between $100-$150 per year. This may seem like a steep investment to some of you. But in truth, it’s a small price to pay to sleep soundly at night.
What do I mean? You would never feel comfortable keeping hundreds of thousands of dollars’ worth of precious metals stored in your home. You’d always have to worry about getting robbed or burglarized when least expected.
This added protection means your precious metals are being stored in a thick theft proof vault at all times. And you’ll sleep comfortably at night knowing that your wealth is protected.
Bottom Line
Hopefully you understand the value of this proposition. And you may even know why buying gold for retirement is so important.
I highly recommend opening up a gold IRA account as soon as possible. But not just any old account. You need to connect with one of the best precious metals brokers to help you with the process.
Click here to read my detailed review of the top precious metals brokers operating in this space. Trust me when I say you’ll be glad that you did!
