Protect Your Retirement Assets with a Gold IRA

gold IRA

Are you beginning to worry about the future of your retirement assets? Have you considered researching and comparing different types of retirement IRA accounts to ensure you’re optimizing your finances? As the pandemic continues, the chance of your investments losing value greatly increases. How can you prevent this though?

Protect Your Retirement Assets with a Gold IRA

As an example, between January 2021 and February 2021, foreclosures in the United States rose by 16%. If this trend continues because the pandemic is keeping people out of work, the results could potentially be devastating.

In 2008-2009, after the housing crisis hit, many homeowners lost 50%-60% or more of the value of their homes.

Guess what else happened?

In October 2007, the Dow Jones hit an all-time high of 14,164. By March 2009, the Dow Jones reached a low of 6594. Overall, the index lost more than 50% of its value in a year and a half.

And it took until 2013 to begin breaking new highs again. That’s 4 years to get back to even.

How a Gold IRA Protects Retirement Assets

An interesting thing happened during the 2007-2008 stock market and housing market crashes. Do you know what I’m referring to?

The value of gold rose dramatically during this timeframe. And anyone who invested in this hot commodity made a tidy profit during financial chaos.

In October 2007, the gold spot price was valued at roughly $650 per ounce. Because of the economic turmoil that was beginning, it rose nearly $200 in value by the end of the year.

And it was only just getting started.

From that point on, the value of gold rose precipitously for the next few years. By the end of 2009, gold was worth $1100 an ounce. And at the end of 2010, gold was worth $1400 an ounce. In December 2011, gold was worth $1750 an ounce.

It was at this point that the meteoric rise came to an end. But only for the time being.

Why am I sharing this historic data with you?

I’m sharing it to show you that during the worst recession in US history since the Great Depression, gold reigned as king. It was the safest and best investment to own while the economy was on shaky ground.

Investing in Gold to Protect Your Retirement Assets Today

Guess what? The world economy is facing another major recession. The economic stimulus can only go so far. Eventually, the other shoe is going to drop and the economy is going to take a major turn for the worse.

Are you prepared? Most people aren’t, so try not to stress too much if you aren’t ready for the inevitable downfall.

But there are steps you can take to mitigate the negative effects of the current worsening recession. And it’s a lot easier to get started than you may have thought.

Opening a Precious Metals IRA Account

The best way to protect your retirement assets is by opening a gold IRA account. This account gives you the ability to invest in precious metals like gold, silver, platinum, and palladium.

The big advantage of this type of account is that it offers you amazing tax benefits and other exciting bonuses.

First, let’s look at the tax breaks that you’ll receive as a gold IRA account holder.

They include:

  • Tax-deferred investing – in this case, you’ve invested using the traditional IRA tax model. The money invested in this account is pretax dollars. You aren’t required to pay taxes until you begin taking distributions at 59 ½ years of age. If you take distributions early, you are subject to paying ordinary income tax plus a 10% early withdrawal penalty. The other benefit is every deposit in this account lowers your yearly taxable income by the deposited amount.
  • Tax-free investing – in this situation, you’re using the Roth IRA tax model. It’s very similar with one major exception. Since you’ve already paid taxes on your deposits, you get to keep all of the proceeds of your investments.
  • The IRS will not force you to pay taxes on the income earned within this account.

As you can see, these tax advantages are tremendous. They not only make it easier for you to invest in your retirement, but they make it possible to keep the bulk of your income.

I don’t know about you, but that certainly sounds exciting to me.

Other Benefits of Opening a Gold IRA Account

There are many other reasons why a gold IRA account is superior to buying gold coins or bars to keep at home.

Some of my favorite reasons include:

  • It’s like a wealth insurance policy – as a tangible asset, it’s nice to have the option to hold your investment in the palm of your hands. And this physical asset protects you from financial ruin if the US dollar ever crashed. Gold is a well-respected commodity accepted all around the world. You could use gold to buy goods and services when others will not possess the same ability. This physical investment ensures that you retain whatever wealth you have invested in gold during the direst economic circumstances.
  • It’s the best way to create a diversified portfolio – portfolio diversification is more important than ever. The stock market, bond market, and other investments like real estate have risen in value by a wide margin. These investments are poised for a correction or can get worse at any moment. Some skeptics believe the stock market is on the verge of crashing again due to economic uncertainty. Either way, by investing a portion of your portfolio in gold, you’re protecting your overall portfolio from a potential crash. Even better, gold performs admirably during the most ominous economic crises.
  • Maintain full control of your investment – you likely have portfolio managers and account representatives handling your stock market-related investments. A self-directed gold IRA puts you in the driver’s seat. You manage all aspects of this investment. All you have to do is tell your account custodian what to do and they will act on your behalf.

Bottom Line

At this stage, you likely recognize the value of protecting your retirement assets. The best way to do so is with a precious metals IRA a.k.a. a gold IRA.

This account offers tremendous benefits like the ones mentioned above. Get started sooner rather than later to achieve portfolio diversity and much-needed protection.