Since the 2008 financial crisis, gold IRAs have become an increasingly popular investment option for people planning for their retirement. In fact, you yourself may have spent time pondering the benefits of delving into precious metals as an addition to your portfolio. If you have, here are some key benefits in adding a gold IRA to your retirement plans
Gold IRAs are an excellent way to diversify your portfolio. If you are like the average investor, your retirement portfolio primarily consists of stocks, bonds and cash. All paper assets. We are currently in the midst of the longest bull run in the history of our stock market and the value of paper money is constantly in flux. Since gold prices generally move inversely to paper assets, a gold IRA is the perfect hedge against a possible bear run or inflation.
The Gold Standard
Gold has proven to stand the test of time. All throughout history, gold has been a key financial cornerstone of trade. It has withstood the most turbulent of times and proven to be a fallback point as other means of currency and trade have faltered. Unlike the paper dollar, there is a limited supply of gold on the earth. This provides that intrinsic value which has made gold a mainstay across modern civilizations. A gold IRA is a great way to help you take advantage of that store of value.
As gold IRAs become more popular, your options for holding them are also increasingly substantially. You can choose to have the physical gold held by a custodian at an approved depository or work with a gold broker who will cater to your specific requests and handle the custodial process for you. Additionally if you anticipate a downturn in the gold market, you can liquidate your investment at any time while still maintaining your IRA tax benefits. It should be noted that holding your gold through a mutual fund rather than in its physical state is a much more practical method to be able to easily liquidate your gold IRA.
As you can see, there are several good reasons to take a gold IRA into consideration. A well diversified portfolio is one of the most important aspects of a sound investment strategy. Think of a gold IRA as your very own insurance policy against the risks of inflation and the constantly changing markets we see in today’s economy.