Setting up an IRA (Individual Retirement Account) is a secure way to garner a steady retirement nest egg over the span of your career.
There are many types of IRA’s; which one is right for you is determined based on your assets, including: stocks, bonds, and mutual funds. While these are all linked to the economy, a gold-backed IRA, as you may have suspected, is valued based on gold rather than stocks.
To create a gold-backed IRA, you need to physically own gold, and store it for safe-keeping with an investment firm, referred to as a trustee or custodian. Gold reserves must come in the form of 24-karat gold bullion bars with weights between 1 ounce and 400 ounces. Gold coins, foreign and American, are also accepted. See the full list of all eligible precious metals for IRA investment here.
Why invest in a gold-backed IRA?
The physical value of gold and other precious metals (silver, platinum) adds stability to your investment and makes accounts less vulnerable to market fluctuations in the global economy. Lear Capital reports that, “Gold has outperformed the Dow by over 400% over the past decade.” As the economy fluctuates, the value of gold tends to hold constant.
While gold-backed IRA’s carry less risk, there are fewer opportunities for growth compared to stock-based investments. However, in unpredictable economic times, a gold-backed IRA is one of the most secure investments you can make.
That being said, the best route to take when it comes to investing is diversifying your portfolio. Stocks, bonds, or mutual funds can help you build a comfortable retirement fund, while a gold-backed IRA will provide stability when the market takes a turn.
Looing to set-up or diversify an IRA account? Contact Millan and Co to schedule an appointment. Email: email@example.com or call us at: 512-479-6819.