Along with the many investments that are available today, investing in gold is still a popular investment for various reasons.
This shiny yellow substance is not only attractive, but it also can retain value when other asset classes fall in value such as stocks and real estate.
Want free money?Simply sign up for Aspiration, and the free banking app will give you cash for free, you just relax while it gives you $150 just for opening a new debit card. There’s no catch. This bank account is legit and only takes two minutes to sign up for an account. |
Adding some of this precious metal to your individual retirement account (IRA) may be just what you need for a more comfortable retirement and a great long term investment strategy.
Why You Should Invest in Gold
Gold has always been in demand and will continue to do so. It is admired greatly for its beauty and it has always been used for money for millennia. Gold has been the currency that moved the mark for hundreds of years — as far as 1,500 years ago.
Even today, this has not changed. People still rush to obtain gold when economies fluctuate. There are certain advantages of gold as an investment, here are some of the reasons you should consider:
1. A Hedge Against Inflation
Gold has historically risen in value as inflation increases. This means that when the dollar decreases in buying power, as well as the yield from Treasury notes, gold can still provide you with the stability your retirement account needs.
2. Gold Can Be Used as an Investment
Right now, gold is rather inexpensive. In 2008, it sold for $869.75 per ounce. It hit is high mark just three years later at $1,895 in 2011. With inflation, it is apt to keep on rising from where it is now. It is always advisable when investing to buy low and sell high for the greatest profit. This means gold can keep your investments solid and growing especially in a bear market.
3. Gold Is a Safe Haven
During various financial crises of the past, investors have quickly bought gold when they saw trouble coming. Many of them sold their stock and bought gold.
4. Political Uncertainty
As the world appears to become a more unsafe place, people become afraid of the collapse of their economy. This has earned gold the nickname of “crisis commodity.” During those occasions when things look bleak, gold will often do better than other types of investments.
5. Limited Supply
When the amount of gold available in the world becomes harder to get, the price of gold increases. In recent years, most of the gold made available has come from central banks. This reduction has occurred since 2000, and mines have produced less gold than usual in recent years.
Want free money?
|
These five reasons reveal why gold has been and still is a great investment. By adding some to your retirement account, you can grow your retirement faster and provide greater stability for it.
Different Types of IRA’s
When it comes to preparing for retirement, there are two primary types of IRAs. You can put your money into a traditional IRA or a Roth IRA.
- Traditional IRA – This kind of IRA lets you get a tax deduction (up to a limit) on the money you put into the account. No taxes are paid on the interest until it is withdrawn, but at that time, your taxes will likely be lower. You must start to withdraw money when you turn 70 1/2.
- Roth IRA – Money put into a Roth IRA is taxed – no deductions allowed. No taxes are paid on the interest as it builds, or when you withdraw it, up to certain limits. There is no mandatory age at which withdrawals must start.
How Does an IRA Work?
IRAs give you a way to save money for retirement and lets you build your savings without paying annual taxes. There is a limit on how much you can put into an IRA: $6,000 if you are under 55 and $7,000 if you are over 55. The interest is compounded, so if you start early, you can have a much larger retirement sum when you reach retirement age.
Precious Metal IRA
There is a way that you can invest in gold and use its stability as a way to reinforce your IRA and protect your retirement. Another kind of IRA, called a self-directed IRA, is capable of enabling you to take advantage of having gold in it. The value of the gold in it is affected by the gold price in the USA.
This type of IRA will let you put gold into it. The gold must be placed into an IRS-approved custodial account. Once you put gold into your account, you can track the value of it by looking at gold futures.
The Best Apps to Save You Real Money
We are on our phone a lot, right? Wouldn't it make sense to save money with the best money saving apps?
