A gold IRA may just offer one of the most reliable, profitable, and financially-smart options to help you prepare for your retirement. Why not check out some of the amazing plans below to get started, or read on to learn more about how it all works.
Countless people have faced the terrible reality of losing the savings they worked for all their lives as a result of our unstable economy. These people have been left with nothing and are often forced to work well past their retirement age just to make ends meet.
With threats like hyperinflation and the falling US dollar to contend with, there are increasingly few safe options for keeping your assets secured. Fortunately, one good choice still exists: which is to put your money into a gold IRA.
Gold IRAs offer probably the most secure option for keeping your money safe, but it’s important to familiarize yourself with what they are and how they work before you go ahead. Read on and we’ll take a look at some of the important things you need to know about gold IRAs before you start your investment.
Is a Gold IRA Really Secure?
You’ve probably heard that gold IRAs are the most secure form of investment for your retirement funds but is this really true?
The good news is that your money really is safer when you put it into a gold IRA1. The reason for this is that gold is immune to many of the factors that make financial investments so unstable.
Financial investments include currency, stock and bond investments, and more. Unfortunately, these are greatly affected by things like hyperinflation, devaluation, and economic difficulties. This means they will often rise and fall in value. The same is true for some physical assets too – including property.
When investing in gold however, your money is much more likely to remain safe and secure.
This is because gold maintains its value even during economic turmoil. In fact, gold often rises in value during these times. This gives gold a huge advantage as an investment option, particularly when the economy is struggling.
Can You Make Money From a Gold IRA?
Many people choose gold IRAs because they want to keep their money safe. As with other forms of investment however, gold IRAs can also give you good returns over time2.
This is because gold doesn’t just retain its value, but also often increases in value. This makes it absolutely possible to make a profit when you invest your money in gold.
For instance, when the recession began during 2008, the value of gold increased significantly. Those who had invested in stocks and bonds lost a lot of money during this time, while those with gold IRAs were making profits!
The fact that gold goes up in value during economic downturns is one of the best advantages of choosing a gold IRA.
Can You Rollover Existing IRAs Into a Gold IRA?
Another important factor to think about is the fact that existing IRAs can be “rolled over” into gold IRAs.
While precise situations vary, in the vast majority of cases your money can easily be moved from an account such as a 401k into a gold IRA. Unlike transferring money between financial accounts however, rolling over into a gold IRA doesn’t incur any tax penalties when done correctly.
For this to work though it’s very important that the process be handled correctly by a competent organization. For instance, the process must be completed within 60 days of starting3.
How to Transfer 401k to Gold IRA
But why would you want to do this? As implied earlier, if your savings are in a 401k, then they may not be safe.
Unfortunately, 401ks are no longer a secure option for savings and there have been countless cases of hard working Americans losing money invested in this way due to recession.
There are many issues with 401ks that make them unsecure options. Including:
Vulnerability: 401ks are highly vulnerable to factors that are outside of your control, such as hyperinflation and the falling US dollar.
Administrative Costs: It is very expensive for employers to provide 401ks and often they will pass these costs on to you in the form of various fees.
Risky Investment Options: 401ks offer you a variety of investment options but these are typically all somewhat risky. All these options are vulnerable to factors influencing the economy and the dollar as described above. Ask yourself, do you feel as though we’re moving into a period of political (and therefore economic) certainty? Me neither.
Complex Tax Laws: 401ks come with a number of complicated tax laws and when you combine the taxes you’ll pay with fees, they become significantly less viable.
For all these reasons, 401ks are often not the best choice for your investments. Fortunately, there are better and safer options out there: such as gold IRAs.
Why Transfer 401k to Gold IRA?
There are lots of advantages to having a gold IRA that make it a far better option compared with 401ks. Here are some examples:
Protection from Hyperinflation: Gold is resistant to hyperinflation and even if the government prints more money, it won’t affect your investment.
Increases in Value During Recessions: While financial assets and many physical assets will suffer during harsh economic times, gold actually tends to do the exact opposite and has been proven to increase in value in most cases.
Deferred Taxes: Taxes are much simpler and more affordable with gold IRAs. When you use these accounts you will get a tax deferred status until you decide to withdraw.
Transfer vs. Rollover
The best way to transfer your money from a 401k to a gold IRA is to do what’s called a ‘rollover’. The option to do this is actually another advantage that sets gold IRAs apart. Here’s the difference:
Transfer
When transferring money between savings accounts you will often do so directly using check or similar. Unfortunately, this process also often means you lose your tax deferred status.
Rollover
When you move your money into a gold IRA however, the process is different. Here the money will go from your current IRA, to you, and then to your new custodian (the company handling your gold IRA). This might sound more complicated but the big advantage is that you don’t lose your tax deferred status so there is nothing extra to pay.
This makes a rollover significantly better than a transfer as you don’t risk having to pay hefty taxes.
There are some regulations to consider though.
Rollover Regulations
When rolling over money from a 401k to a gold IRA, there are some stipulations you need to be aware of:
60 Day Window
When performing your rollover, you need to ensure that it is completed within 60 days of the starting time.
12 Month Limit
The same assets can only be rolled over once a year.
The best gold custodians will handle this process for you while making sure that you meet all these requirements and avoid any tax penalties. Shop around to find a company that offers rollover services and your life will be made significantly easier!
Closing Comments
As you can see then, gold is a savvy investment for many people and a Gold IRA presents a great way to prepare for your retirement. There are detractors that suggest that investing in gold is more volatile than its traditional reputation as a “safe haven” seems to imply. But even taking that into account, there are ways to invest in gold that are tied to its smaller fluctuations. If you prefer this option, you can still choose tangible assets.
And moreover, in a world that is increasingly intangible and based on commonly held beliefs, there is something reassuring about having a vat of cold, hard gold somewhere with your name on it. You won’t change our minds that a Gold IRA is one of the safest ways to prepare for the future.
Why not check out some of the links below to get started, and to future proof your own retirement plan?