Some of the people here at tometa software are in their late 50s and retirement is not that far away. There are many options to secure a safe and secure retirement and we want to share one that has caught our attention. Since the financial collapse in 2008 prices of precious metals were negatively correlated to the paper currency. This is one of the main reason we are considering a gold IRA. If you are not familiar with precious metals IRAs read on.
This is a short overview of precious metals IRAs in case you don’t know what it is.
Retirement Investments In Gold: Gold IRAs
Thinking of your retirement investments as a nest egg is a common conceit. You might even picture that egg as a golden one. A lot of people are making that image more literal than metaphorical these days by making gold IRAs part of their retirement planning. Gold hit a long-term high by passing the $1,300 per ounce mark in May of 2016, and these historic prices attracted a lot of interest from new investors. Is opening up a gold IRA a move you should consider yourself? – source: mineweb.net – Gold IRA Rollover
First of all, calling these accounts “gold” IRAs is actually just shorthand. They allow for investment in all forms of commonly-traded precious metals. This includes silver, platinum, and palladium as well as gold. You can find the full list at mineweb.net. Gold IRAs were enabled by a congressional act in 1997. Edmund C. Moy, former director of the US Mint and current strategist for Fortress Gold, shares some useful background information on these accounts.
Precious metals suitable for IRA holding have to conform to strict standards. According to many investors, the metals must be in the form of bars or coins that meet the IRS’s standards for fineness. The metals also have to be held by a trustee, not by the account owner him or herself. The metals must physically reside in a depository approved by the IRS. In other words, this form of account isn’t compatible with burying gold bullion in your backyard.
May also noted that the metals in a gold IRA are subject to all of the standard rules about contributions, disbursements, and taxes that apply to other IRAs.
Why Open A Gold IRA?
The chief advantage that a gold IRA has to offer to the retirement investor is portfolio diversification.
Both traditional and Roth IRAs – which hold stocks or mutual fund investments – are subject to the whims of inflation. A gold IRA acts as a check against inflation because the price of gold habitually moves away from that of paper assets. A partial investment in gold is an excellent way to reduce long-term inflationary risk. This is why gold is particularly suited for retirement investing.
According to many, the adoption of gold IRAs was initially stalled by the stringent transactional requirements involved. It took a great deal of persistence to overcome the hurdles placed between the investor and long-term gold ownership. Challenges included finding an appropriate trustee and an approved depository. Buyers also had to deal with the hassle of transferring purchased metal into the depository in a recorded and trackable fashion. – Mineweb.net