Recent events have exemplified a volatile world economy. Currency problems in Asia, plunging oil prices, fears of inflation, and a roller coaster stock market have placed both institutional and individual investors on edge. Additionally, many investors are unsure of how upcoming presidential elections will affect their ability to invest and grow their wealth for retirement. Investors looking to solidify their positions should look no further that a self-directed IRA and precious metals. Precious metals have always offered investors opportunities to build and maintain wealth; with a self-directed IRA you can hold gold as part of your retirement plans with all the tax advantages and freedoms you deserve.
The Freedom to Buy & Sell
A self-directed gold IRA offers you the freedom to buy and sell physical precious metals as part of your retirement accounts. This approach is not the same as investing in mining stocks, futures, or ETFs; with a self-directed IRA you own the physical precious metals themselves. Using a self-directed IRA to own physical precious metals is a powerful way to diversify your retirement portfolio. Diversification is a key element in any portfolio and protects your savings by reducing overall risk.
Diversification is Protection
The biggest risk to any retirement account is inflation. As the dollar loses its strength, the value of your savings dips as well. By diversifying your retirement wealth into precious metals, which historically perform well in inflationary times, you protect your well-earned assets. Additionally, since precious metals are not paper-based assets, your ownership of an asset like gold is not affected governmental decisions regarding interest rates.
Without a self-directed IRA, your retirement account consists of just stocks and bonds; in such a scenario, all of your IRA investments are in paper assets, with all the associated risks of that scenario. The self-directed IRA offers a way to move beyond paper assets to real physical investments that offer growth opportunities.
Availability
A self-directed IRA with investments in precious metals is available to all investors. The self-directed IRA offers all the tax advantages of a typical IRA with the added bonus of giving you full control over how the money is invested. Imagine holding real physical gold as part of your retirement plan! The value of your investment grows and compounds tax free. Additionally, you gain the advantage in that you can shift your allocation of precious metals and not be taxed; for example, you can sell some gold to buy some silver all safely within your self-directed IRA.
Gold and other precious metals have been a traditional marker of wealth. Gold has been used as currency for thousands of years. Gold remains valuable because it is in limited supply. The historical role of gold and other precious metals as markers of wealth have put great demands of supply. As supply dwindles, the value of gold rises which is a good thing for those investors who have made the effort to add gold to their portfolios. Owning gold in your retirement account is a strategic portfolio move designed to offer you diversification and a hedge against inflation.
David Schultz is a knowledgeable and experienced financial advisor, with over 10 years of experience. On occasion, David likes to write informative articles to help people understand their own financial situation a little better. He believes that knowledge is the key to a better retirement.