Introduction to a Gold IRA Rollover
and Some Interesting Facts about Gold
We all know that gold is considered one of the most precious metals on Earth, but some less known facts about gold include:
- People have discovered gold on every continent on earth – including Antarctica!
- The Earth pours more steel per hour than it has poured gold since recorded history.
- Gold conducts both heat and electricity – and never rusts!
- One cubic foot of gold equals approximately 1/2 ton in weight.
- The ancient Inca referred to gold as “tears of the sun”.
- Gold is an excellent hedge against inflation, and unlike paper money, gold cannot be printed!
What is an IRA?
An Individual Retirement Account (“IRA”) is an excellent way to build a nest egg for your retirement by allowing you to save for the future while both avoiding taxes on and earning interest on those savings. Investing in an IRA is almost always a good idea given the enormous benefits. After all, you want to be sure that you can afford to vacation, play golf, and retire in a nice community during your retirement. Perhaps even more important is that the right IRA plan should allow you to also leave some funds behind to help children and grandchildren, and possibly even future generations of your family!
Regardless of whether or not both the husband and wife are employed, each individual is allowed to own and invest in an IRA. However, the amount you are able to save each year varies based on both your total taxable compensation for any given year, or if that amount is too great, by contributions limits specified by the IRS. However, the government does not place any minimum on the amount you are able to invest in an IRA, although several brokerage companies and IRA custodian companies do have minimum investment limits.Moreover, IRA investments are not taxed until withdrawn (and depending upon the type of IRA and period of withdrawal, the investment may never be taxed). While we generally never recommend withdrawing funds from an IRA early (unless there is an absolute emergency), you certainly do have the option to take out funds whenever you wish. Individuals with IRA investments are required, however, to begin withdrawing funds shortly after their 70th birthdays; withdrawing funds prior to their 59th birthdays will result in penalties unless an exception applies (certain disabilities, first-time home purchases, medical expense reimbursements, and more.)
Types of IRAs
Also keep in mind that there are many different IRA options. In fact, there are eleven! They are as follows:
- Individual Retirement Account
- Traditional IRA
- Roth IRA
- Education IRA (EIRA)
- Individual Retirement Annuity
- Employer and Employee Association Trust Account
- Simplified Employee Pension (SEP)
- Spousal IRA
- Inherited IRA
- Savings Incentive Match Plan for Employees IRA (SIMPLE-IRA)
- IRA Rollover
Introducing the Gold IRA
One of the most compelling reasons to shift towards a gold-backed retirement plan is that gold acts as a safety net and a hedge against inflation. After the economic crash in late 2007, and even the years leading up to the crash, gold values more than quadrupled versus the value of the U.S. dollar. This dramatic increase in the value of gold can largely be attributed to the fact that, unlike paper currency, gold cannot be printed. There will always be a finite amount of gold bullion on the planet, providing more stability in retirement savings than in other investments. Moreover, gold has consistently been the standard used by nations throughout the globe when faced with worldwide currency declines. Considering a national debt of over $16 trillion, and social security on the path to bankruptcy, an IRA is an appealing alternative for many planning for retirement. Although politicians have cited the current economic climate as being reminiscent of the Great Depression, with an IRA you no longer have to worry about socking your money under your mattress or burying it your backyard for financial security!
The Power of the Gold IRA Rollover
As mentioned previously, the power of a gold backed self-directed IRA is that an investor can direct his financial institution to simply write a check for gold, or for any other precious metal investment. The versatility of this form of IRA is simply unmatched, and often affords investors better control over their retirement portfolio than other IRAs.
What are the Benefits of a Gold IRA Rollover?
One of the greatest benefits to a gold IRA rollover is that gold has consistently been a bulwark of financial stability throughout recorded history. The inability to print or create caps its accessibility in the marketplace and helps act as a hedge against inflation. The free market can be volatile, as witnessed in the recent economic collapse, and IRAs not backed by gold or other tangible precious metal assets are subject to those volatile fluctuations. If the economic crisis is large enough and inflation runs rampant (take Greece as an example), cash backed IRAs may become all but worthless.
Invest With Gold
The peace of mind that the stability of a self-directed and gold-backed IRA brings is priceless, and even more comfort comes from knowing that the retirement account is managed by a financial institution with experience, credibility and a proven track record of customer satisfaction and success. Investing in gold is an important decision and anyone diversifying his or her retirement portfolio to include gold should ensure that he or she has the right account management company to back the investment.
Investing in gold could truly change your life and your retirement plans, but make sure you have the right account management company caring for your assets.
Please read reviews of specific companies by clicking below: