A tough market. Foggy financial news. A world that seems like it’s standing on the edge of the knife. More investors flocking to gold. If you read the headlines, you might draw the same conclusion that millions have: that now is the time to invest in gold. But when it comes to your retirement plans, is this also the time to consider having gold in a Self-Directed IRA?
Because Self-Directed IRAs give you the option of having a more diversified portfolio, you can invest in gold for retirement purposes with the usual protections of retirement accounts. Many investors don’t know this and subsequently believe that their fortunes are tied to the stock market—and the stock market alone. That’s no way to go through life. And it’s certainly no way to go through your retirement strategy, either. Let’s take a closer look at what it takes to own gold in a Self-Directed IRA and whether or not now might be the ideal time for you to strike:
Self-Directed IRAs: A Better Vehicle for Gold Ownership
Many people who own gold don’t consider using an IRA to protect their holdings. They simply purchase gold or gold stocks and then hold. This might be okay as an overall hedge in your portfolio, but it misses out on the ample protections and opportunities present in using an IRA.
When you use an IRA to invest in precious metals, you can let the wealth grow tax-deferred or even tax-free. It’s the same as it applies to other retirement accounts, allowing you to hold gold in a way that gives you much more control over your investments. You’ll also have additional protections on that gold that you wouldn’t otherwise have.
And thanks to the freedom afforded to you with Self-Directed IRAs, you can think about other precious metals as well. Silver, platinum, and palladium are other investment vehicles that can help you diversify within the precious metals market to ensure that you aren’t tied to any one particular precious metal price.
Is Now the Time to Invest in Gold?
Investing in gold, like any other investment, is a risky proposition. There are potential drawbacks. The price of gold might go down. Historically, gold doesn’t have the stellar rate of return as equities do. However, this isn’t always the reason that many people invest in gold, either. Gold also has a tendency to retain its value over time—even going back to the days of the Roman Empire. If you own gold, there’s a good chance that the money you hold in gold will still be valuable a hundred years from now.
Of course, you might be more concerned with the short-term. There’s good news here, as well, as many investors flock to gold as a safe haven investment when they’re not sure about the returns available in the stock market. And since bonds have been returning less than many investors would like, they’re not considered the true “safe” investment that gives you a good return on your value, either.
If you think that gold is a good investment now, you likely think that it might be a good investment for the long-term as well. And that means you might want to consider investing in gold as part of your retirement strategy. To do this, you can self-direct your own IRA, purchase gold/silver, and allow your wealth to feel more secure, knowing that you aren’t so heavily dependent on the value of the stock market for your returns. If you want to know more, call us today at 828-257-4949 to learn about Self-Directed IRAs.