What is a Gold IRA?
An IRA stands for Individual Retirement Account. An IRA is an account set up by a financial organization that allows an individual to save for his or her retirement without being taxed on the money/funds. The US Government allows for tax-free growth on the account because it is for an individuals retirement. The United States government sort of gives the individual a break by not taxing them on this account. There are three categories or types of IRAs: Traditional IRA, Roth IRA, and an IRA Rollover. A Gold IRA is simply any Individual Retirement Account that consists of gold as it’s asset instead of paper currency. It functions exactly as the IRA of distinction but the assets in a Gold IRA is physical gold bullion, gold coins or bars of gold or all three, but not cash money.
What is the benefit of having a Gold IRA versus cash besides it’s non-taxable status?
Besides the advantage of not having to pay taxes on the account there are two other main benefits of a Gold IRA: security and rate of return. Gold is the safest purchase on the planet in relation to retaining value and/or the increasing value of the metal. It has been seen as an item of value for thousands of years. Gold is considered actual wealth anywhere on the planet. There is no other asset so versatile or universal. The value (price) of gold has been consistently growing for thousands of years, literally. It was not long ago many were saying gold had capped out at $800.00 per ounce. Today it is holding steady at around $1300.00 and it will continue to increase as the years pass.
Gold has outperformed many other investments including the Dow Jones industrial, The Nasdaq, and it’s right on par with the consistently strong Standard and Poors (S & P 500 ) over the past decade (yet it is much safer). Including gold within an existing retirement account or creating an account such a Gold IRA is a decision that’s not only wise, but in many ways practical. Considering the facts that gold resists inflation more than any other asset, the tax benefit of a gold IRA, it’s more than adequate performance and the international safety/security of such an investment instrument having at least a portion of one’s portfolio or retirement in some sort of Gold IRA is an a wise call.
Who sets up a Gold Backed IRA?
There are investment firms that will handle this for you. Some actually specialize in this type of protocol. We recommend one that “specializes” in Gold IRA and precious metal investments. The firm will do the paperwork, obtain the gold, verify it’s integrity and some firms will even store the gold for you. See our review section or our Choosing A Metals Firm link for a guide line on ten items that should be investigated before seriously considering a firm.