Precious Metals in an Individual Retirement Account – A Smart Idea?
Over the years, the economic climate has become extremely volatile and unpredictable. In fact, it is getting hard for most individuals to achieve financial stability. Markets keep fluctuating without warning. However, no one would prefer jeopardizing their retirement savings in such an uncertain market. There are several ways of saving up for retirement. One of them is through a Gold IRA. It is a special investment strategy that allows individuals to add real physical gold, platinum, silver or palladium to their portfolio. It has been considered a valuable asset investment strategy for centuries. However, the method is open to questions as most people are emotional about it.
Is investing in a gold IRA a smart decicion?
The answer to this question lies in the hands of the individual seeking to invest. However, when deciding whether to invest or not, here are the facts, tips, and tricks to note.
- Precious metals are much more stable and consistent compared to paper money. In fact, they move in the opposite direction to that of paper assets. Therefore, in case the whole financial market overturns, the value of precious metals would rise dramatically. An investor of precious metals is protected against stock market losses and inflations.
- The strategy is free from tax unless the investor makes withdrawals.
- Precious metals are self-directed. It means it is not subjected to control from any employer. They are only stored in pure states and accordance with the conditions set by the IRS. An investor has to find a custodian with proper storage facilities.
- They don’t need any special form of maintenance. All that an investor need is to invest in them and forget till later. They are protected from any form of utter disaster.
- Finding a reliable company for safe storage is essential. Precious metals are secured in vaults and records. It is not recommended to store them at home because of their high value. Most insurance firms won’t insure precious metals stored at home.
Times have changed. It is now easy to invest in precious metals unlike in the past when it was hard to find a custodian who can store precious metals. Several custodians offer simple procedures and transfers of precious metals. The decision to invest depends on the individual but is vital to consider the benefits and drawbacks that come with it.