When the stock market crashed in 2008, the average worker lost about 25% of their savings. That’s the average. There were less prudent folks who lost 50% and more due to lack of diversification.
Now imagine that happened to you just before you entered your hard-earned retirement. 50% of your savings are gone and you have no time to recoup it. That’s the nightmare many soon-to-be retirees experienced when the markets crashed.
My point is, if your retirement savings are tied only to unstable financial markets, your nest egg is at risk. And no matter whether you are in your 20s or 60s, losing a big chunk of your savings is no fun.
As such, you have to hedge. And one of the best ways to do that is to own physical gold in your IRA account.
But before I explain what a gold IRA is, let me briefly tell you why gold is a must in your retirement fund in the first place.
How Bullion Can Benefit Your Retirement
When economic growth slows, nearly all investments lose value.
To protect your portfolio from a huge loss during a recession like the one we saw in 2008, you want to own some assets that tend to move in the opposite direction from most others.
And gold’s inverse relationship with stocks makes it one of the best financial safe havens known to man.
If every investor portfolio should contain physical gold, this is doubly true for retirement accounts. There are few scenarios worse than losing 50% of your life savings due to a stock market crash.
But even if a recession doesn’t destroy the value of your paper assets, the purchasing power of your nest egg can still be eaten away by inflation.
When your savings should last through retirement and expenses like health insurance and medical care are increasing, knowing how far your money will go in 30 years can become a life or death issue.
Think about this: Something that cost $10,000 in 1976 cost $22,028 in 2016.
What will it cost in 2046?
Meanwhile, gold has retained its value (in real terms) for thousands of years. As indebted governments print more money, I’m sure its value will only grow.
Did you know that gold has provided an average annual return of over 7% in the last 50 years—and that actually exceeded the growth of the S&P 500?
It is essential to consider inflation or currency debasement in your retirement planning… and dedicating a portion of your savings to physical gold is a great start.
Now, let me explain to you what a gold IRA is and the options you have…
How to Get Started with a Gold IRA
A gold IRA is simply an IRA that allows you to invest in precious metals.
There are two kinds of IRAs:
- In a Traditional IRA, you can make tax-deductible contributions if your income is below a certain limit. Your money can grow tax-free until you reach retirement age. By then, you’ll likely be in a lower tax bracket.
- A Roth IRA is almost the opposite. You don’t get a deduction when you put money into the account, but you won’t owe any tax at all when you reach retirement age and begin withdrawals.
Regardless of the IRA type, the buying process involves four parties: you, the IRA custodian, the gold dealer, and the storage facility.
Here’s how it works:
- You find a custodian and transfer your funds to it via IRA-to-IRA transfer, annual contribution, or by rolling over cash from another retirement account such as 401(k) or 403(b).
- You choose a precious metals dealer and place your order. The dealer contacts your custodian to verify funds; the custodian contacts you to confirm your order; then your dealer places the order on your behalf and notifies the custodian.
- You choose the storage facility you will use to hold your gold. Your dealer ships your order to the facility, and the facility verifies receipt of your metal.
- Once your gold is safely in storage, your custodian releases funds to your dealer and credits your metal to your IRA account.
This process requires a lot of paperwork, coordination among participants, and takes up to 4–6 weeks. Anytime you want to make a transaction, you have to do it all over again.
As you can see, it’s far from convenient and can be daunting to even the most seasoned investors.
The Ideal Gold IRA
If you wish to avoid the paperwork, time, and hassle of coordinating each part of the process, it’s worth it to find a fully integrated precious metals IRA program combining:
- an online custodial account
- access to a robust dealer network to buy and sell bullion 24 hours a day
- a secure purchasing and management platform
- domestic and international storage options
- ability to take a physical distribution of metal anytime without added fees (physical distributions may be taxable and subject to early withdrawal penalties, please consult your tax advisor before requesting a distribution)
- dedicated customer support
With everything under one roof, you can easily add physical precious metals to your IRA and manage the entire process online, anytime.
If you are looking for a gold IRA program, I invite you to consider the Hard Assets Alliance.
We run one of the most convenient and secure bullion platforms on the market. The platform connects you with a pool of wholesale bullion dealers that bid on your order, which ensures highly competitive pricing.
It’s also a sophisticated suite of services that includes precious metals IRA accounts, savings programs, dollar-cost-averaging solutions, and more.
If you buy for storage, the Hard Assets Alliance provides you with fully allocated storage at the vaults of first-class storage companies like Brinks or Loomis. These vault companies store metals owned by the world’s biggest institutional investors—a clear vote of confidence that tells you your gold will be safe there as well.
This kind of convenience and pricing in the precious metals industry were only available to large institutions not so long ago. The Hard Assets Alliance makes it available to you—and at a fraction of the cost.
Learn more about our platform and IRA program.
Regardless of your dealer choice, I strongly recommend adding gold to your IRA. History shows that this metal is the best hedge against any crisis—be it a stock market crash, a devastating hurricane, a political backlash, or a war.
And in volatile times like these, protecting your wealth is more important than ever.
Free ebook: Investing in Precious Metals 101: How to Buy and Store Physical Gold and Silver
Learn how to make asset correlation work for you, how to buy metal (plus how much you need), and which type of gold makes for the safest investment. You’ll also get tips for finding a dealer you can trust and discover what professional storage offers that the banking system can’t. It’s the definitive guide for investors new to the precious metals market. Get it now.
Olivier Garret is the founding Partner and CEO of Mauldin Economics, a leading publisher of financial research geared to individual investors and institutions.
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