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Gold IRA rollover. The term gold IRA rollover refers to the rolling over of retirement accounts from other assets, like stocks and bonds, into gold or gold-based investments. While not all investment companies are certified to handle these types of transactions, if you can find one that is, it’s an opportunity worth exploring if you want to diversify your retirement portfolio. This article will cover five reasons why you should consider a gold IRA rollover.
1) Gold Is Priced in Dollars
Since 1971, when President Nixon canceled gold’s convertibility to cash and brokered deals with foreign governments to peg their currencies to ours, gold has been priced in dollars. When you buy something that is priced in dollars, like a car or house, you earn interest in dollars (if you finance it). When you invest your money, you want it to work for you.
When you buy an ounce of gold for $1,300 and then sell it for $1,400 at some point in time, you will make money. But since it is priced in dollars, when those prices move up or down due to inflation and interest rates, you need to factor that into your profit.
By investing in gold bullion coins or bars instead of holding cash in your retirement account:
How do I rollover my existing traditional IRA into a gold IRA?
It is recommended that you hire an independent, third-party custodian to do your gold IRA rollover. A trusted metals dealer can open a self-directed IRA for you with most of these companies. It’s like any other retirement account and will be handled in exactly the same way, but it will also allow you to hold gold or silver as part of your investment portfolio.
Make sure to do some research before you start investing in gold or other precious metals as part of your retirement portfolio. This way, you’ll make informed decisions and maximize your profits. Investigate which gold IRA rollover option is best for you: There are three major types of gold IRAs: unallocated, allocated and self-directed. Each one has its own benefits.
An unallocated gold IRA allows you to buy any type of gold (bullion, coins or certificates) from any source and take title to it. While there are advantages to having freedom of choice, in practice your account could get too complex.
2. Gold is a Hedge Against Inflation
Gold IRA Rollover
There’s no better way to protect your retirement savings against inflation than with gold. With paper currency and other assets, you can see your purchasing power erode over time. But if you own gold, even when there is inflation in an economy, you will still be able to retain some of your wealth.
Gold is an alternative to stocks and bonds: Holding gold is one way to diversify your portfolio. Many people who are looking for more from their retirement savings than just being able to maintain their standard of living may consider investing in gold. If you have stocks or bonds in your portfolio, adding gold can help smooth out your investments and give you extra security as you invest.
Get more of your money in gold: It can be hard to keep your retirement savings growing when you’re limited by rules that only allow you to put a small amount into precious metals. If you own gold, it may be possible to roll over your current plan into one where you have more access to investing in precious metals. That way, instead of keeping just part of your money in precious metals, all of it will be invested in gold and other metals.
Gold prices have soared in recent years: While paper currency has lost much of its value to inflation, gold prices have increased in value. Some of those who are looking for retirement options that will help them maintain their wealth without losing purchasing power over time may be excited by how quickly gold has grown in value. Those who were able to invest before gold really took off have reaped some major rewards.
3. Gold Doesn’t Correlate With Other Assets
Investing in gold can help diversify your portfolio, which means you won’t be as vulnerable to volatility caused by swings in stocks and bonds. Since gold typically doesn’t move in tandem with other asset classes (such as stocks and bonds), it can serve as an effective diversifier when added to a portfolio. Gold also tends to perform well during times of geopolitical uncertainty.
For example, when stocks fell sharply in 2008 and 2009, gold not only didn’t fall during that period; it actually increased significantly in value. When asset prices dropped in Europe during 2011, similar to what happened here in late 2008 and early 2009, gold didn’t follow suit. In fact, gold has averaged an annual return of 10% since 2001 – above most other investment classes.
Its low correlation to other assets means that, when stocks and bonds are down, gold typically isn’t. And when stocks and bonds are up, you can still earn an attractive return by investing in gold. Some may even call it divine intervention!
How much is your retirement plan worth?
How well is your portfolio diversified? Have you added alternative investments such as gold or real estate to balance out your holdings? The answer to these questions could be eye-opening. As one of our clients recently said, I had no idea I was so heavily invested in stocks and bonds. He’s not alone; many investors are exposed to much more volatility than they realize because they don’t realize how much of their portfolio is allocated toward more volatile assets such as stocks and bonds.
Gold IRA Rollover
4. Gold Won’t Lose Value in a Stock Market Crash
t’s generally agreed that gold is an investment with little or no risk of losing value. That’s because gold has intrinsic value—meaning you can melt it down, sell it, and buy yourself something with the proceeds. Gold can’t lose its intrinsic value. The dollar on the other hand has no intrinsic value: what do you get when you burn a dollar bill? Nothing! And don’t say heat. Burning your cash will just make you warm.
I always chuckle when I hear that gold has lost value over recent years. What investors are saying is that they would rather have $1,000 in cash instead of an ounce of gold. They’re entitled to their opinion, but I say they’re kidding themselves! Why settle for something as paltry as cash when you can have real value?
If you think cash is risk-free, ask someone in Cyprus how secure their bank deposits are. The world’s banking system is teetering on collapse and central banks can print as much paper money as they like. Cash isn’t so safe anymore! Who knows what will happen to your cash if hyperinflation gets out of control? It won’t be worth anything at all… except for its intrinsic value as kindling for your fire. And even then you could probably get more cash for free at any gas station or convenience store if that’s what floats your boat!
Just ask yourself if you’d rather have $1,000 worth of gold or $1,000 in cash. Then ask yourself which one is safer? Cash or gold? If you can come up with any reason why cash is safer than gold I would love to hear it! All I know is that when my dollar bill gets burned, all I get is a pile of ash. When my gold bar gets burned… I get another bar of pure 24 karat gold!
5. A Gold IRA Rollover Minimizes Your Risk While Helping You Sleep at Night
A study from Cambridge University found that gold’s performance during economic crises may be linked to its role as a hedge against inflation and other systemic risks. Because of its low correlation with traditional financial assets like stocks and bonds, investing in gold could help diversify your portfolio and boost long-term returns. A gold IRA rollover offers you tax advantages: Traditional IRAs are pre-tax accounts, meaning all contributions you make are eligible for deduction on your tax return.
Because gold has low correlation with stocks and bonds, you can use it to help diversify your portfolio. That will protect you from volatility in other assets and offer better returns over time. A gold IRA rollover gives you easy access to your money: If you ever need access to your retirement savings, a gold account makes it easy for you to liquidate some or all of your holdings without penalties or taxes.
A gold account gives you more control over your future: When you choose a gold IRA rollover, you can have full ownership of your assets and claim them when you’re ready. Whether that means cash payments from your investments or ownership of physical gold, you’ll have many options to choose from for how to access your retirement savings.
A gold account offers tax-deferred growth and protection from inflation: Not only will you be eligible for lower taxes when you invest in a gold IRA rollover, but your investments can grow much faster than they would in other accounts. Over time, you’ll also be protected from inflation because gold has historically been very effective at protecting against economic downturns.
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Our #1 Company Pick, Goldco
If you have an existing Individual Retirement Account (IRA), and want to convert it into physical gold, you can roll over your assets from a financial institution into a Precious Metals account. You will still be able to enjoy tax-deferred growth of your investment, but in order for your gold holdings to qualify as an asset in your self-directed retirement account, they must be physically delivered.
In addition, you can invest in silver and other precious metals products with your IRA. Goldco has been a trusted leader in the gold space since 2006, and has the highest level of customer service ratings with all the major ratings services including: Trustlink, BBB, Trustpilot, and more.
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0ur #2 Company Pick: Augusta Precious Metals
Augusta Precious Metals makes buying physical gold and silver bullion a breeze with its buy-and-store program. Customers simply open an IRA or Self-Directed 401(k) account, fill out some paperwork, transfer their existing retirement account over, buy a storage plan, and—done!—they’re set up with a physical precious metals portfolio they can call their own. Prices on investment-grade gold and silver bullion are always competitive, too.
After deciding that you want a physical precious metals portfolio, then figuring out how and where to buy physical gold and silver is probably next on your list. Fortunately, Augusta Precious Metals makes buying gold easy. Click the banner below, request info, and one of Augusta’s helpful representatives will be in touch with you promptly!