Gold Investing: Should You Back Your Retirement with the Market, or with Gold and Silver?

Gold Investing: Should You Back Your Retirement with the Market, or with Gold and Silver?

July 16, 2018

So, you are making plans for retirement. What are you doing to secure your nest egg for your golden years? It’s never too early to start this process, and many investment options are available. Have you considered gold investing?

If you’re not familiar with this option, use the following guide to educate yourself about backing your retirement with gold and silver. It’s not something everyone considers, but many people could financially benefit from this type of investing. Here’s the scoop on using gold IRAs to fund your retirement.

What is an IRA?

To understand gold IRAs, you must first know about IRAs. An IRA is an individual retirement account. It is set up to save for retirement with either tax deferment or tax-free growth.

A traditional IRA allows the investor to invest the funds without paying taxes on them before they are put into the account. However, taxes must be paid when the money is withdrawn. A Roth IRA requires the investor to pay taxes on the income before contributions are made to the account. Then, no taxes are paid when withdrawals are made.

Both traditional and Roth IRAs have limits on annual contributions. For those under 50, individuals can invest up to $5,500 a year. Those over 50 can invest up to $6,500. To qualify for Roth IRAs, the individual must have a gross annual income of less than $120,000, or $189,900 for married couples.

Where are IRA funds invested?

Money placed in an IRA is invested in stocks and bonds. Most financial advisors suggest a diverse portfolio of small, large and international company investments. If an individual partners with a financial advising firm, these investing experts can either invest the funds for the individual or offer sound advice on where to invest.

What is a gold IRA?

Gold IRAs, also called precious metals IRAs, are simply individual retirement accounts that include IRS-approved precious metals, such as gold. When an individual invests in a gold IRA, a custodian (approved by the IRS) holds the contents of the gold IRA in custody for the owner of the account. A gold IRA offers similar functionality to other IRAs, except the investor can buy and own physical gold rather than holding paper assets.

Are gold-backed accounts better than other market options?

Being in control of physical assets rather than fluctuating paper currency can have its advantages. Investors can feel more secure knowing their retirement is backed by gold or other precious metals. The value of the investments can be more predictable than the rest of the volatile market. Various companies’ performance and myriad other factors can create chaos in the market, but gold can offer more stability.

Find Out More

Would you like to learn more about gold investing? Do you have a plan for your retirement? The experts at Gold Wealth Financial are ready to assist you. We will make sure that we find the right options for you. This is an investment in your future. Don’t wait for the financial unknown. Call today!

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