In these unstable times, the financial security of retirement funds is at the foremost of many people’s minds. Having an assurance of stability in the face of instability gives peace of mind to investors. The benefits of having gold or other IRA-approved precious metals as a part of a retirement plan are numerous and well-documented.
- Diversification – In adding diversification to a retirement portfolio, investors shore their investments against fluctuation in the market. Gold IRAs are one way to bring diversification to a retirement portfolio that would otherwise rely too heavily on traditional paper assets. Gold and other precious metals are part of a long-term, balanced investment approach and well-suited to a retirement portfolio.
- Stability – Gold acts as a measure of stability compared to other assets. Many investors believe in the permanent worth of gold. Throughout the history of civilization, humans have always valued and coveted gold. Keeping gold as part of your retirement investment lends that feeling of stability and permanence to wealth.
- Balance – Historically, gold has done well in periods of instability and economic or political turmoil. The worth of gold tends to follow an inverse relationship to the worth of paper assets. When traditional assets are struggling, gold does well in comparison. Similarly, the worth of gold doesn’t do as well when the market is booming. This balance, combined the the stable worth of gold, brings true balance to a retirement portfolio.
In addition to the benefits conferred upon a retirement portfolio by gold, the tax and control benefits of a self-directed IRA are also available to investors. Since the financial crisis of 2008 and the housing market crash, investors have shown an increasing interest in Gold IRAs for the stability and balance they lend a portfolio. In addition, many Gold IRAs can contain other types of assets beyond just gold and precious metals.
Investing in a Gold IRA is a good method of diversification and balance for a retirement portfolio. Savvy investors that are knowledgeable in the nuances of the gold and precious metal markets can greatly benefit from diversifying their retirement portfolio through a Gold IRA.