Gold IRA investing is one of the fastest and best ways to increase the growth of your retirement accounts. Many people realize that investing in gold, silver, platinum, and palladium is a smart idea. But what they fail to realize is the true importance of this investing strategy.
Today, I’d like to share many of my favorite reasons why it’s critical to invest in a gold IRA to help your retirement. Believe it or not, this investing strategy is about more than simple retirement growth. It’s about hedging your bets against inflation, investing in physical gold to protect against a faltering US dollar, and so much more.
Keep reading to discover exactly how gold IRA investing will help your retirement.
Gold IRA Retirement Advantages
- Portfolio diversification
- Gold’s tremendous track record
- Protection for paper assets
- Total investment control
- Tax benefits galore
Gold IRA Advantage #1: Add True Diversity to Your Portfolio
Plenty of investors think that having a diversified stock portfolio is the only thing needed to keep their investments safe. This is a logical fallacy because investing in different sectors seems like it’s adding diversity to your portfolio but it really isn’t.
How do you figure?
Think about every stock market crash that has happened in the last 150 years. Did one or two sectors experience an economic downturn? Or did the entire market get crushed?
I’d like to look at the economic downturn that took place during 2008. It’s a great example because the housing market and stock markets both got crushed at the same time.
The Dow Jones industrial average dropped like a rock starting in late 2007 and heading into the end of 2008. It reached an all-time high of 14,000 at that point. By early March 2009, the doubt was trading below 7,000 points at one time.
Not only did stock market investors lose, but they lost big. Many retirement portfolios were completely cut in half. And retirees suddenly had to go back to work because their portfolio couldn’t sustain them any longer.
Do you know what happened at the same time?
The value of gold began its meteoric rise. At one point in 2007-2008, gold traded for roughly $700 an ounce. After the crash and moving into 2009, the value of gold began to increase precipitously. In fact, by 2012-2013, the value of gold traded in the neighborhood of $2000 an ounce.
Do you see what happened there?
As the stock market got crushed, the value of gold nearly tripled. Those only invested in the stock market experienced pain from their failing investments. Those with a diversified portfolio had their gold investments balancing out their stock market losses. These smart investors didn’t have to go back to work because their gold investments kept them flush.
Gold IRA advantage #2: Gold Has One of the Best Investing Track Records Ever
Here’s an interesting fact:
Beginning in 1972, the value of gold has increased an average of 10% per year.
Please understand what I’m telling you. I’m not saying gold went up 10% per year for 50 years straight. It definitely had bad years mixed in with the good. But the overall average increase from 1972-2022 was 10% per year.
Here’s another interesting fact:
The S&P 500 entered into a selloff that lasted for two days beginning on February 25, 2020. During this time, this index lost $1.7 trillion.
Stock market investors lost their draws because of the negative fallout of the pandemic.
Here’s another interesting thing that happened:
Beginning on February 4, 2020 and lasting on March 7, 2020, gold saw an increase in value while the S&P 500 was getting killed. In fact, the value of gold increased by $160 per ounce.
Clearly, gold has a tremendous track record and it can offset the negative effects of other assets during tough economic times.
Gold IRA Advantage #3: Paper Asset Protection at Its Finest
Many investors enjoy purchasing precious metals in a gold IRA for lots of reasons. But one of the biggest reasons is the protection it provides against paper assets.
Right now, it’s a prime example of needing paper asset protection. The US economy is in complete shambles. And a lot of it has to do with inflation due to oil prices going through the roof.
Not that long ago, many of the items selling on grocery store shelves were 50%-100% or more last and they are currently selling for right now. It costs almost double the amount that it did a year and a half ago to fill up your gas tank. And many other expenses are increasing as companies raise their prices to offset the negative effects of inflation.
Companies can offset their inflationary expenses by raising their prices. How do regular people offset inflationary effects?
They do so by investing in gold, silver, platinum, and palladium. These gold IRA investments tend to increase in value during tough and difficult economic times. It may not happen today or may not happen tomorrow, but these investments will increase in good time.
Gold IRA Advantage #4: Gain Complete Investment Control
A gold IRA account is technically a self-directed IRA account with the ability to purchase precious physical precious metals. With this account, you control all of your investment purchases. There isn’t an administrator or account manager making these decisions for you.
Remember, nobody cares about your money as much as you do. You want full control of your investments, so a precious metals IRA is the right way to gain financial freedom.
Gold IRA Advantage #5: Immense Tax Benefits
As a gold IRA account holder, you have the ability to defer tax payments until you begin taking distributions at 59 ½ years old or older. This deferred income is deposited directly into your IRA account. You can use this money to invest without paying taxes on this income until you see fit.
This is a tremendous way to grow your wealth for retirement very quickly. Or if you prefer, you can fund your account with post-tax dollars and earn great wealth without ever having to pay taxes on this investment income.
At this stage of the game, you should definitely see how a gold IRA can help your retirement. This investment vehicle can grow your wealth, protect your wealth, help you save money on taxes, and so much more. Get started investing with a precious metals IRA sooner rather than later.