Whether you are a recent college graduate just starting out in life or an experienced professional in the prime of your career, saving for retirement is always an important priority. Tax-incentivized dedicated savings accounts are a popular option. Many banks and financial institutions offer advantageous IRAs, or Individual Retirement Accounts, as well as other plans such as the 401(k). However, there is one significant potential problem with relying on an IRA for your retirement: by the time you need your funds, they may simply be no longer worth as much as they used to be. To guard against potential issues such as currency devaluation, some institutions offer gold IRA investment.
When you invest in a gold IRA with a reliable institution such as Regal Assets, your account’s value is tied to the physical possession of gold bullion or coin. According to the Taxpayer Relief Act, other precious metals may be used for this purpose, including platinum, silver and palladium. Gold, however, is the most commonly used material. The IRS also regulates the purity of the precious materials in order to ensure that value is maintained.
Gold Backs Your Account With Consistent Value
Gold IRA investments offer several significant advantages over regular IRAs, which are backed by paper assets. Inflation, which is always a major threat to the value of paper currency, will not affect precious metal holdings. The value of materials like gold generally depends on two factors: limited availability and utility.
A material can be essential for many industries and activities, but if it is easy to obtain, its value will not be very high. Thus, wood is an indispensable material that is crucial to construction and other industries, but it is not a scarce resource. Other necessary materials, like plastic, are also important but can be easily manufactured and are therefore widely available, limiting their value. Gold, on the other hand, cannot be produced artificially and is found in limited quantities.
Utility is also an important measure of value. While the cosmetic value of certain gems can be high, leading people to be willing to pay high prices for jewelry, if there is no further application it may not pay to rely on it, as fashions change and values of gems can decrease as they go out of style. Gold is used for many industrial applications, including consumer electronics as well as government installations. As worldwide reliance on digital technology continues to grow exponentially, the demand for gold can only be expected to increase.
Due to the stable value of gold, many governments throughout the world are buying it to bolster their economy and provide a solid basis for their currencies, making gold IRA investment an even more attractive option. In contrast, paper currency is extremely vulnerable to inflation and stock market crashes. If you do not want to risk seeing your savings demolished by incomprehensible market fluctuations, investing in a gold IRA can help you achieve your retirement goals with peace of mind.
Who Can Help You Set Up Your IRA?
When deciding where to set up your gold IRA, look for financial institutions like Regal Assets that are knowledgeable about applicable laws and IRS regulations and make compliance a priority. Investing with a company that disregards the rules can result in the loss or severe devaluation of your investment.
What Types of Gold May Be Used?
In addition to prescribing the types of precious materials that may be used to back an IRA, the IRS has also issued instructions as to the acceptable forms these materials may take. Generally, coins or bullion may used for a retirement account. Only coins that are found on the IRS list may be accepted, since they are the ones found to have met the governments standards for minimum purity and precious material content. In addition to certain gold, silver and platinum coins issues by the U.S., there are Austrian, Canadian, Swiss, Australian and Mexican coins that may be used. Proof coins, which are issued in highly limited quantities and are individually inspected and certified, can carry a value that is higher than that of their precious material content and may fluctuate less.
Bullion tends to be a less popular choice than coins for the purpose of IRA investment, due to several factors. The first strike against bullion is that is easier to counterfeit than coinage. In addition, its value can be diminished by the fact that is can be harder to sell because of its higher price point, weight and difficulty in transportation. Thus, an IRA backed by gold bullion may be more difficult to liquidate and you may not be able to access your funds quickly.
Security and Insurance Requirements
When you invest in a gold IRA, the actual gold is held by a custodian, pursuant to IRS regulations. The trustee or custodian in many cases is the institution that you are investing with, which must be approved by the IRS for this purpose. Approval for storing precious materials for IRAs is granted based on a finding of adequate security and insurance. Today, security installations use advanced technological features such as finely calibrated vibration detectors in order to safeguard your assets. A reliable institution like Regal Assets should be able to not just help you make the right investment but take all necessary steps to ensure proper security and compliance with insurance requirements.
If you already have an IRA plan, your financial institution can work with you to roll it over into a gold IRA and transfer your current assets to your new fund. When choosing a company for your gold IRA investment, look for professionals who are truly knowledgeable about navigating gold prices and can give you the information you need to make the right choices. When your goal is long-term stability, you should be investing in materials with intrinsic value, not chancy or high-risk speculations. Look for a proven track record of success, experience in the field and knowledge of the gold market as well as of relevant laws and regulations. Experienced investment professionals at Regal Assets can work with you to create an account with solid value backed by gold whose value will be consistent. Learn more at the Regal Assets website and find out how to get started with your gold IRA.