Diversification is a vital part of any retirement plan. With the volatility of the stock market and foreign indexes, putting all your retirement eggs into one basket is far too risky. If you don`t have enough money set aside when you`re ready to retire, you will have to work far past the age you wanted to. Even if you did save enough, you may find yourself in trouble if your investment vehicles fail to perform or suffer great losses over the years.
Historically speaking, Social Security alone does not provide enough money for you to live on in your retirement years. The amounts of the benefits are not adjusted enough for inflation and the change in the value of the dollar. Since you can`t rely on Social Security to provide for you and your family in your later years, you must develop a solid back-up plan by saving for your retirement yourself.
You must have a retirement plan that is able to weather the impact of a weak economy and market instability while providing enough money to cover the Social Security shortfall. Adding gold to your retirement plan can help balance the effects of a rough economy and protect some of your nest egg. This way, if the market tanks, you won`t see all your retirement money disappear from your accounts.
A great way to add precious metals like gold to your IRA is to rollover IRA into precious metals ,this may help you to use your 401k or 403b or any IRA you are holding to buy gold and silver,but this process requires a third party ,which is the custodian allowed by you to handle the paperwork of the IRA transfer,always make sure to select your custodian on the basis of trust and reputation they have .
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Since gold is a precious metal with a solid attached value, gold value usually rises when other investment vehicles, such as stocks, bonds and mutual funds, fall. Gold value goes up as inflation rises and the dollar is weak, the two events that damage the investment market. Gold is able to hedge dollar-based investments, protecting you in tough economic times.
You don`t have to buy huge gold bars and hide them in your house to include the metal in your retirement plan. You may include gold in your IRA. The Tax Payer Relief Act of 1997 allowed for the inclusion of gold and some other precious metals into an IRA account. The act also allowed taxpayers to establish a new IRA account based on precious metal holdings.
Gold in an IRA must meet the government`s criteria. The act places rules on what precious metals can be held in an IRA. Permitted entries include the American Gold Eagle coins and gold bars with a grade of at least 99 percent. Make sure any gold you want to buy for your plan meets the government`s requirements for IRA inclusion.
There is also the issue of having to find a trustworthy precious metals custodian. This responsibility usually lays on the owner of the IRA,this is why investors should conduct serious research to locate the best dealers with who to trust their money,which usually requires time and dedication .
You`ll need to find a legitimate seller if you`re planning on buying the gold yourself. Some IRA custodians and information portals provide assistance with finding sellers and other gold IRA questions. Research sellers and gold types before you buy so you don`t end up with gold that doesn`t qualify.
Adding gold to your retirement plan is one way to ensure you`re not left struggling when it`s time for you to retire. Just a glance at market information from financial information portals, such as Simply Finance, is enough to confirm a completely investment-based retirement plan is a risky gamble.