What is a Gold Annuity?

What is a gold annuity

Gold is an integral component of many electronic devices like televisions, smartphones and cars; additionally it’s an attractive investment option.

Gold annuities, also known as precious metals IRAs, provide you with the option to add physical gold bars and coins to your retirement savings portfolio for diversification purposes and as an inflation hedge. They provide added advantages in protecting against inflation.

Investing in Gold

Gold has long been seen as an investment vehicle that provides protection from economic uncertainty and volatility, like cash or real estate investments. Gold also tends to increase in value during periods of volatility while acting as an inflation-protector unlike cash or real estate.

Gold investing can be a complex decision; therefore it is wise to consult a financial advisor in making the appropriate choice for your unique circumstances.

Finding a qualified financial advisor doesn’t need to be a difficult process. SmartAsset’s free tool connects you with advisors in your area and enables you to interview them free of charge before selecting one to work with. Click now! Brightscope allows for further background checking on potential advisors as well as performing an instant performance review for those interested. Although investing in gold may be beneficial for some individuals, not everyone finds its appeal compelling enough.

Tax-Deferred Growth

American Equity Bonus Gold deferred income annuity provides the chance to amass significant sums through tax-deferred growth of premium and interest, giving your funds plenty of time to grow before any tax liabilities come due when withdrawing the money, typically around retirement age or at age 59 1/2.

However, it’s essential to understand that annuities are not guaranteed investments and may not provide the 6%+ returns advertised by some agents selling this product.

Consider an index annuity with a long surrender period as it provides you with an attractive combination of low risk investment returns and no probate costs upon death. Furthermore, such an annuity should appeal to investors looking for something secure but with single digit returns; just ensure your use a free annuity calculator which takes your situation and timeline into account before making your final decision.

Inflation Hedging

Hedging against inflation is an integral component of protecting investments, and there are various inflation-hedged asset classes such as gold and utility stocks available that offer protection.

These assets typically perform well when inflation rises and interest rates remain low, yet also demonstrate strong performance under other environments – for instance, gold has long been considered an effective hedge against inflation.

Due to supply constraints and storage costs, physical gold may not be a suitable inflation hedge. That’s where an indexed annuity like American Equity Bonus Gold comes into play – its flexible crediting methods make it tailorable to individual goals while its steady stream of income makes it suitable for retirement or pre-retirees seeking reliable income sources with mid-single-digit returns – this makes it suitable for conservative retirees or pre-retirees looking for guaranteed income streams that won’t decline significantly over time if taken advantage of.


Liquidity is an integral factor of investing, particularly with precious metals such as diamonds. If your diamond ring is worth thousands but only worth 25 cents to you in cash terms, its potential “worth” won’t help cover rent payments any time soon.

An annuity can be an ideal way to diversify your retirement portfolio with physical metal assets, but be wary of any partner that charges additional fees like one-time account set-up fees, maintenance costs and storage fees as well as seller’s commission or cash-out charges.

American Equity Bonus Gold fixed annuities have a 10-year surrender charge period and offer penalty-free withdrawals of up to 10% after their first contract anniversary date. Furthermore, they come equipped with riders that allow withdrawal in cases such as terminal illness diagnosis or nursing home confinement.

Raymond Banks Administrator
Raymond Banks is a published author in the commodity world. He has written extensively about gold and silver investments, and his work has been featured in some of the most respected financial journals in the industry. Raymond\\\'s expertise in the commodities market is highly sought-after, and he regularly delivers presentations on behalf of various investment firms. He is also a regular guest on financial news programmes, where he offers his expert insights into the latest commodity trends.

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