Do you need to diversify your investment portfolio? A great way to setup your retirement is investing through a gold IRA.
What is it?
It’s a self-directed IRA that allows you to invest in gold and other precious metals like silver, platinum, and palladium. These precious metals are purchased through a reputable gold broker. And they’re stored in a safe and protected depository of your choosing.
Today, I’d like to share five reasons why you should invest in a gold IRA. These valid reasons should really make you think about wealth in retirement differently.
Diversity is only one reason to add gold to your retirement portfolio as an investment. And it’s the first one that I’ll share more information about with you below.
1. Achieve Greater Levels of Portfolio Diversity
Future retirees should never keep all of their eggs in one basket, as the saying goes.
Why? You never know when one of your investments (or more) will fall into a negative downtrend.
The US stock market is a prime example.
In February 2020, the US stock market (and other world markets) took a nosedive for about six weeks straight. During the crash, the Dow Jones Industrial Average suffered through three black days. They are now known as Black Monday I, Black Thursday, and Black Monday II.
Take a look at the results of these massive crashes:
- Black Monday I – this took place on March 9, 2020 and the DJIA dropped 2013 points, which equates to a -7.79% loss.
- Black Thursday – this took place on March 12, 2020 and the DJIA dropped 2352 points, which equates to a -9.99% loss.
- Black Monday II – this took place on March 16, 2020 and the DJIA dropped 2997 points, which equates to a -12.93% loss.
These three days represent losing nearly 31% of your portfolio in an incredibly short amount of time. Are you prepared to take such a devastating loss toward your financial well-being?
Most people aren’t.
By adding gold to your retirement portfolio, you wouldn’t have suffered nearly as much as you did if you only invested in stocks.
Over the past year, the value of gold has risen by nearly 24%. If you owned an equal amount of gold compared to your stock investment, your portfolio would only have dropped by 7%. That’s a lot better than 31% in my opinion!
2. Gold Liquidity Is at an All-Time High
Investing is a fickle mistress as we all know. Sometimes your investments will rise high and make you a ton of money. Other times, they’ll struggle to deliver the returns that you want and need.
On the other hand, liquidity is necessary when it comes time to cash in on your big investments. Certain stocks have excellent liquidity. Other investments like real estate can take years to find a buyer willing to pay your price.
The same can be said about buying gold. Except that was all in the past. Now gold is one of the hottest commodities in the world. And everybody wants to get their hands on this precious metal.
Have you ever heard of Exter’s Pyramid? According to the pyramid, gold is more liquid than any other investment that exists. The levels of investment liquidity are as follows:
- Paper currency
- T-bills and government bonds
- Muni bonds, corporate bonds, stocks, and securitized debt
- Privately owned businesses, real estate, and nonmonetary commodities
- Derivatives and unfunded government liabilities
So, never worry about having a tough time finding a buyer for your gold investments. This investment is the most liquid asset of all. You’ll have no trouble selling it when the time is right to cash in on your big profits in retirement.
3. The Tax Benefits of a Gold IRA Are Stupendous
More than anything else, you should open a gold IRA account for the tremendous tax advantages. The IRS isn’t willing to provide benefits like this too often. And too many people fail to benefit from on this opportunity. I do not want you to be one of them.
The tax advantages of a gold IRA include:
- Grow your retirement account with tax-deferred investments.
- Grow your retirement account with tax-free investments.
- Lower your overall adjusted gross income.
- Accumulate wealth longer than other investments (up to 70 ½ years old)
- Pay the marginal tax rate on tax-deferred gold investments
Some pretty big advantages, right? Open a precious metals IRA account today to experience these huge tax breaks.
4. Gold Is a Hot Commodity Right Now
Not only has gold been around forever, but it’s making a huge comeback these days for various reasons.
Paper currencies always struggle eventually because governments print them with abandon. They recklessly add more money to the economy, and this ultimately devalues the existing currencies already in print.
The Federal Reserve is killing the US dollar as we speak.
Mitch McConnell and Nancy Pelosi are about to put through another round of stimulus. This means printing more money to prop up the ailing economy.
What does this have to do with gold?
Gold is experiencing the opposite of the US dollar and other paper currencies. Instead of losing value, investors are flocking to it and it’s becoming even more valuable.
They are pulling their money out of the US dollar and trusting gold and other precious metals.
They don’t want to get left holding the bag if the US dollar crumbles even further. They want their wealth to grow and flourish even in a difficult economic environment.
5. Consumer, Corporate, and Global Debt is Out-Of-Control
What does this mean?
It means that all of this debt is eventually going to snowball and create a doomsday scenario. It means the US dollar is in serious danger of collapsing someday.
Are you willing to take a chance with your wealth? Or are you smart enough to take the steps to protect it by investing in a gold IRA?
I think the answer is clear, don’t you? Invest in gold and minimize your exposure to the US dollar before it’s too late.
As you can see, things look grim for the world economy and the US dollar in general. But this doesn’t mean you have to go down with the sinking ship.
You can begin investing in gold for your retirement and protect your wealth all at the same time. You can take control of your financial destiny and preserve your wealth to the best of your ability.
Contact a reputable gold dealer now. And initiate a precious metals IRA rollover as soon as you can to get started with this investment.