A gold individual retirement account (IRA) is similar to any IRA you currently have, including your 401k, except that it lets you diversify your retirement savings into physical assets. Gold IRAs can hold gold, while similar IRAs can tackle silver and other precious metals. Throwing, or I should say rolling over, a gold IRA into your retirement mix means that you aren’t just investing your savings into a single type of asset. You are able to capture IRS-approved gold bars and coins as a way to save for your retirement.
Gold IRAs are essentially a type of hedge investment against the American dollar. You no longer have to bet on the stability of the US economy to ensure your retirement safety. So long as gold prospers, you will be able to live comfortably. If gold becomes the primary measurement of currency, as a result of global financial meltdown, then you will hold significantly larger bargaining power.
What Are Gold IRA Rollovers?
Simply put, a gold IRA rollover is the transfer from one of your IRA savings accounts, or your 401k, into a gold IRA. These funds are transferred and you hold the rights to physical gold equivalent to the value of your investment, excluding any relevant fees.
How Much Can You Invest in a Gold IRA Rollover?
Talk to your tax or financial ad visor. You can decide to contribute more or less to your gold IRA from your traditional IRA. Invest as you feel comfortable and increase your tolerance to risk when your savings grow. It’s as simple as that, and you will have a flourishing gold IRA savings.
Why Invest in a Gold IRA Rollover?
Gold IRA rollovers are not a one-time investment, but rather an appropriate long-term savings plan. They should be treated as an alternative to traditional IRAs. However, we believe it is currently a good time to transfer your retirement savings into gold. The world’s economy may be surviving for now, but the gold hype will return in great style as soon as a major shift occurs. All it takes is one country to turn to gold as a safe haven and you can effectively multiply your retirement savings.
How Much Can a Gold IRA Rollover Earn You?
The maximum earning potential for a gold IRA savings is hard to cap. It all depends on how high the gold price can soar after you invest your money. For example, anyone who threw $35,000 into gold back in 2002 will have seen a peak on their investment above $200,000, with many profitable opportunities to cash out along the way. Of course, as with any investment, past results can never be predictors of future performance.
The tax code determines what items you can hold in your gold IRA. Only certain coins are acceptable, such as the Maple Leaf coins in Canada and the Buffalo and Eagle coins in the United States. Also, only the finest level of purity can be deposited. For instance, gold coins must be .995 pure to be accessible in a gold IRA rollover investment. Talk to your tax or financial adviser for more information on current regulations.
Conclusion: Is a Gold IRA Rollover the Way to Go?
We believe the gold IRA rollover is certainly a good technique for anyone looking to increase their retirement savings. In our opinion, the right time to invest in a gold IRA is either when you are young, or at any point when you have a lot of retirement savings to move around and diversify, while the gold market is near its bottom.
Investing in a gold IRA rollover should be treated similarly to investing directly into gold. You will be buying and selling your investment based on the value of gold, so you are essentially investing in gold. Learn more about the gold market, how it has changed since reaching the last all-time high price, and decide whether its an investment vehicle you can trust.