In the current downward state of our economy, it is even more imperative that we can have as much money saved up for retirement as possible. Between IRA’s and 401k’s, there are several different ways that you can grow your retirement fund. But, you do want to get the most value for your money without having to forfeit as much money for taxes, which is why you’re considering an IRA.
Physical Gold IRA
You’ve probably heard of and wondered about physical gold IRA’s, and more importantly, whether or not they’re a good idea. If you want the truth, it’s a personal decision. There are certain individuals who would benefit more from having solely cash in their IRA’s versus gold. There are still others who are much better off with having gold, but we’ll get to that later.
Now, gold is a commodity that has been through it all and has never decreased in value. It has been around since the beginning of mankind and has backed the US dollar for centuries. It has survived wars, the oil crisis, 911, the recession, and all of the other events that have caused strain on the economy. But, it has never lost its value; it has only increased in value. In fact, over the past decade, the value of gold has increased by 300%.
The US dollar on the other hand, is getting weaker day by day. It used to be backed by gold, but now that we’re printing off more money than we have enough gold, how can that be? What if all of that money that you so dutifully stored into your IRA loses its value? What if the day you decide to cash in your IRA, only to find that it has shrunk significantly in size? One way to avoid this event is by purchasing gold and putting the bars into your IRA.
That being said, gold cannot gain revenue by sitting in your IRA account, which is why having a gold-based IRA scares most people. It seems like the whole point of setting up a retirement fund is to gain interest, right? Since gold is an object and not money, you can’t gain interest on it for keeping it in your account for X number of years. As mentioned before, though, there are certain situations where having gold in your IRA will be more favorable to you than money.
If you have a no-income portfolio and don’t have any stocks or bonds that you foresee being profitable, or if your IRA is the only financial investment vessel that you have, having gold in your IRA is greatly beneficial to you. In addition, having physical gold AND cash-based IRA accounts are valuable. This is because your gold account can be liquidated and you will receive the cash from the gold for what it is worth, which will be more than what you paid for it.
While making the decision to base your IRA on physical gold or through other assets, it is up to you and what you feel more comfortable with. Keep in mind, though, that gold has only increased in value, while cash is being printed off on a daily basis with nothing necessarily backing it. On the same token, having money in your IRA will guarantee interest that will help your account to grow. In either case, you will be saving towards your future and creating a safety nest egg to live comfortably during retirement.]]>