Intelligent investors recognize the value of buying gold. They see the writing on the wall with the US dollar and the struggles we’re having because of massive inflation.
They see it every day when they go to the store and pay more money for groceries and gasoline. And it’s just as prevalent when purchasing other goods and services too.
How do you protect yourself from a struggling economic climate? And at the same time, how do you grow your nest egg for retirement?
These questions are on everyone’s mind these days because things are looking very grim. But there is a light at the end of the tunnel. And every cloud has a silver lining.
Your best bet is to begin investing in a self-directed gold IRA. You’ll gain access to many wonderful benefits including tax breaks, inflation protection, and much more.
Care to discover the reasons why it’s so important to open a gold IRA? Keep reading to learn more of the amazing advantages of this once-in-a-lifetime opportunity.
Reason #1: A Self-Directed Gold IRA Offers Portfolio Protection
The market has been burning hot as of late. At least it was until very recently. But the NASDAQ is at the beginning of a major correction and the other markets will soon follow.
Are you protected from the inevitable downturn? Stocks can only stay red-hot for so long before they pull back to more expected levels.
Institutional investors and hedge funds have to take profits every once in a while. So, stock prices tumble from time to time. And let’s not forget about the difficult economic environment we happen to be in right now.
How does a self-directed gold IRA help with portfolio protection?
For starters, at this point everyone should know that gold is a safe haven investment. It’s powerful because it can minimize the financial damage that inflation wreaks on the world every so often. And it’s a great way to protect your portfolio from economic troubles, political unrest, and financial downturns.
How so?
Did you see what happened during the Great Recession in 2008? The financial markets got crushed. The Dow Jones lost more than 50% of its value in about a year. And the NASDAQ and the S&P 500 didn’t fare much better.
While all of this financial turmoil was taking place in the markets, one investment really withstood the economic devastation. And even better, it thrived during this difficult fiscal climate.
The value of gold increased from roughly $700 an ounce in 2008 to nearly $2000 an ounce by 2012. This is a monster percentage increase and everyone smart enough to own this powerful investment made out like bandits.
If you were to look at all of the major financial downturns throughout history, you’d notice a similar pattern. You’d see that during tough economic times, the value of gold increased exponentially during the same period.
Reason #2: A Self-Directed Gold IRA Provides the Account Holder with Full Control Over Their Investments
I don’t know about you, but I personally cannot stand having somebody else in charge of my investments. I know deep down from the bottom of my heart that they do not care if I make money or not.
Your mutual fund manager doesn’t give a hoot about your success or failure. He or she only cares about collecting their hefty fee. If the market happens to go up at the time, they’ll sing from the heavens and rejoice. Even if the account value only increases by 1% or 2%.
That’s why I love having a self-directed gold IRA. I get to take full control over my investments and nobody has any input but me.
There is no account manager breathing down my neck telling me saying I have to invest in XYZ. I get to make every investment choice by myself without anyone’s input if I do not want it.
This makes it possible to invest in some of the best gold coins and other precious metals that money can buy. In fact, since I’ve had full control over my account, I’ve had the opportunity to invest my money my way.
Some of my favorite precious metals investments include:
- Gold American Eagle
- Gold Canadian Maple Leaf
- Gold American Buffalo
- Gold Mexican Libertad
- Gold Chinese Panda
- Silver American Eagle
- Silver Canadian Maple Leaf
- Silver American Buffalo
- Silver Mexican Libertad
- Silver Chinese Panda
- and other exciting gold, silver, platinum, and palladium investments
This is what taking full control over your investments is all about. You have the power to pick and choose your investments wisely. And it’s a great feeling watching these investments mature and earn healthy sums. You’ll really appreciate it when you have a chance to enjoy it in retirement.
Find out about opening a self-directed gold IRA by reading my detailed review of the top companies in this space.
Reason #3: A Self-Directed Gold IRA Offers Immense Tax Benefits
I can only speak for myself but I have a feeling you’re just like me. I always take every opportunity I can to avoid paying as much taxes as possible. It’s the way of the world and it’s the best way to preserve and protect your personal wealth.
Everybody’s always going on about paying their fair share. And that is absolutely what you should do. But if the IRS provides a tax loophole, you have to jump at the opportunity every freaking time!
And that’s exactly what you get when you open a self-directed gold IRA. You get to take advantage of tremendous tax breaks that seem like opportunities that only come around every so often.
How do these tax advantages work?
It all depends on how you open your account. You have the opportunity to open a traditional self-directed gold IRA or a Roth self-directed gold IRA. Each type of account has its own benefits.
Example Benefits of Opening a Traditional or Roth Self-Directed Gold IRA
As an example:
A self-directed traditional IRA means you get to lower your yearly tax burden by depositing income into your account. Let’s say you earn $90,000 this year. Instead of paying taxes on $90,000, you’re only going to pay taxes on $84,000.
How so?
Well, $6000 of your income was deposited directly into your self-directed traditional gold IRA. By depositing the money in this account and then investing it, you’re free of your tax burden but just temporarily. At least until you reach 59 ½ years old. Because at that point, you can begin taking distributions and that’s when you’ll pay your taxes.
Here’s another example:
You decide it’s best to open a self-directed Roth gold IRA to build your wealth in retirement. This is a good idea because the money deposited into this account has already been taxed. So, all the proceeds earned within a self-directed Roth IRA are yours to keep.
Did I hear that right? Yes, you did my friend! Everything earned in this account is yours to keep as long as you follow the rules set forth by the IRS.
What’s the main rule? You are not allowed to withdraw money from this account until you reach 59 ½ years old. If you take money earlier, you’re subject to paying your taxes and paying a 10% early withdrawal penalty.
So, the big benefit is to deposit money into this account and invest it until you reach the proper designated age.
Learn about the top gold IRA companies by reading my detailed review.
Reason #4: A Self-Directed Gold IRA Harnesses the Power of Long-Term Investing
So many people foolishly try to time the market. And more often than not, these irrational individuals get burned and end up losing money. Hasn’t anyone paid attention to Warren Buffett and Berkshire Hathaway for the past 50 years?
Warren Buffett has truly learned the value of investing for the long term. He bought shares of Coca-Cola around 33 years ago and he still owns this investment today. Guess what? It’s made him more than 2000% on his investment. And that’s not even counting all of the dividends he’s earned.
He’s also purchased shares of Wells Fargo Bank, which he started buying in 1989. More than 30 years have passed. His original $289.4 million investment is currently worth $21.3 billion.
Most people aren’t going to earn returns like Warren Buffett. That’s a given. But they have to realize the value of investing for the long term.
By opening a self-directed gold IRA account, you have no choice but to invest for the long term. Otherwise, you’ll take out your money early and suffer from a 10% early withdrawal penalty which is a fool’s game.
Bottom Line
By now, I hope you truly see the value of opening and funding a self-directed gold IRA. This type of retirement account has so many benefits that it’s hard to keep track of them all. But my favorite benefits of all include:
- Massive tax breaks
- Long-term investing
- Complete portfolio control
- Portfolio protection
Are you ready to finally take the plunge and grow your wealth for retirement? Read about the top gold IRA companies in business right now. This information will help you discover the best company to get started on your self-directed gold IRA journey.
