What does retirement look like to you? Do you envision yourself travelling around the world? Do you just want to relax on your front porch doing whatever you want when you want? It doesn't matter what your imagining when you think of retirement, what matters is you have enough money to make your dream a reality.
To have enough money to retirement, most people need at least 70% of the income they received while working each year. If you're thinking you'll just turn to social security, think again. According to Fidelity, people will use at least 61 percent of their social security on just healthcare expenses. That doesn't leave much behind for those relaxing trips across the states, does it?
So how will you save the 70% of your working income before you have to retire? Gold IRA investing, of course!
Out of all the commodities in the world, gold is the most valuable. The price of gold has been increasing for over 40 years, and it's projected by analysts to continue rising.
This isn't the only time that people have looked to gold for investing, it's been a safe haven investment for thousands of years. Investors have seen how well it does during times of economic instability. With a possible tapering of the Federal Reserve stimulus program, gold has never looked so good.
Gold IRA Rollover for Retirement
While many people think that gold is just an asset that can be worn of traded as an asset, it's actually a viable retirement option. Gold can be used to back retirement savings, which has proved to be quite lucrative for many retirees.
With a faltering 401(k), many people have decided to take advantage of The 1997 Tax Payer Relief Act. This act says that anyone with a 401(k) can perform a gold IRA rollover. This allows participants to take their money out of their retirement account and place it in one backed by gold without penalty, as long it's taken care of under an IRA custodian.
A gold IRA comprises of physical gold and other precious metals. The reason why millions of Americans have chosen a gold IRA for their retirement plan is that it holds value. When you think of currency, it doesn't have any value to it, unless the economy gives it value. Gold isn't like that. Gold's value is determined by supply and demand, and there is always a demand for gold.
Currently, central banks are being stingy with their gold because they fear what will happen if the Federal Reserve starts tapering funding. Gold is money, and that money can be used if exchange rates become volatile. Mining companies aren't producing as much gold as they used to because they can't find it and the cost of exploration is more than they can afford in an instable economy. Industries are further fueling the demand for gold for jewelry, electronics, cell phones, and televisions. Along with the central banks hoarding gold, demand is up, which is what is driving prices sky high.
A gold IRA rollover is a perfect way to diversify your portfolio. You won't have to worry about inflation, which is in the forecast for the United States right now. You can be rest assured that the economic woes of the world will not have an effect on your gold IRA.
What if you want to sell? No problem!
Gold in your gold IRA is sellable. You can receive cash for it, and only have to pay income tax. What's even better is that the tax isn't too expensive. Since it's a capital asset, you pay a lower tax amount compared to other income.
If you need to use the money from your gold IRA before you retire, don't worry about penalties. In many circumstances, you can get the penalties waived. For example, if you suffer from medical problems, and have healthcare bills or buy a home.
Gold IRAs are Transferable
If you end up dying before you get a chance to use your gold IRA, you can transfer it to someone as inheritance. By speaking to a gold IRA consultant, you can find out how to set this up without causing the recipient to have to pay inheritance taxes.
Speaking of taxes, if you need to store or clean the gold that is part of your retirement fund, you can deduct the amount in your taxes. This also includes any maintenance fees.
If you're sitting there thinking about how grand retirement will be, you need to start thinking about how you're going to make it that way with a good retirement plan. Your 401(k) is likely not giving you the return you were expecting, so diversify your retirement investment portfolio with a gold IRA rollover. It doesn't cost you anything, and it could be the move that ends up giving you the retirement you deserve after many hard working years.
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