BENEFITS OF A GOLD IRA
Before we cover the Gold IRA company comparisons for 2014, we want to identify a few of the many benefits of investing in a gold IRA.
Many factors play a role in shaping our society as a whole, and the economy ultimately plays a huge role determining the life styles of our society. Many people however know very little about what drives an economy; they strive to meet certain standards set by a society, but do they really understand how to attain and maintain wealth to make sure their family’s financial security is met?
Everyone seeks wealth and the pursuit of happiness, but with the struggling U.S. economy, many end up a victim of an economic depression or worse yet an economic disaster; an economic disaster many fear is imminent.
In 2008, the United States witnessed one of the worst economic recessions since the great depression. Gas prices were at an all-time high, foreclosure rates were through the roof, and more people were hitting the unemployment lines.
People began to rely on government assistance in mass numbers. And suddenly, the middle class of America no longer existed; you were either an upper class citizen, or you were suddenly classified as a lower class citizen. During this time, the U.S. dollar was devalued so much, that some feared it signaled the imminent end of the world’s currency standard. That’s a scary thought.
Do the American voters know that the unprecedented improvement in their standard of living that the last hundred years brought was the result of the steady rise in the per-head quota of capital invested? Do they realize that every measure leading to capital decumulation jeopardizes their prosperity? ~ Ludwig von Mises
The way some many prepare for these impending disaster is by investing in gold as a form of currency. A gold IRA is an individual retirement account that is backed by gold, which removes the drastic fluctuations paper currency has on the value of the asset.
Below are some of the benefits of investing in a gold IRA:
- Purchasing Power
- Protection Against Stock Market Loses
- Protect Against Inflation
- Tax Benefits
- Provides Long Term Stability
Gold is traded around the world, twenty four hours a day, seven days a week. It is very easy to make consistent profits that are immune to the currency devaluation. With the U.S. dollar and the euro value dropping like a ton of bricks, relying on paper currency is a recipe for disaster. However, gold value does not fluctuate and is a proven winner investment over time.
Once the decision is made to invest in a gold IRA, the overall process is quite easy. Finding a reputable, reliable and trustworthy custodian for your investment is the most important part of the process. However, we provide a thoroughly researched and scrutinized evaluation of the most trusted names in the business, carefully summarized in our **Gold IRA Comparison** shown below.
|Business Consumer Alliance Score||AAA||AAA||AAA||A||A||F||Not Available|
|BCA Compaints (3 years)||1||68||47||17||15||46||-|
|BBB Score||A+||No Rating||No Rating||A+||A||No Rating||A+|
|BBB Complaints since November 2013||0||Not Available||17||3||3||5||58|
|IRA Annual Fees||Flat (No Fee 1st Year)||Unknown||Scaled||Unknown||Scaled||Scaled||Varies|
|Website||Regal Assets||Merit Gold||Lear Capital||Rosland Capital||American Bullion||Goldline||Apmex|
|Full Review||Regal Assets Review||Merit Gold Review||Lear Capital Review||Rosland Capital Review||American Bullion Review||Goldline Review||Apmex Review|
Our goal with the Gold IRA Comparison chart is to provide education on exactly how and where to trust your hard-earned money. We explain the pros and cons for every company and continually update them as they become available.
PLEASE NOTE: We recommend avoiding any companies that sell numismatic or collector coins. Several numismatic sellers are currently under government investigation for fraud.
THE EFFECTS OF INFLATION ON A GOLD IRA
Because of the fluctuating economy and higher inflation rates, it is important to consider your financial security. This need becomes even more palpable if you are planning to retire since it calls for a need to invest in something that can give you higher returns in the future.
Inflation is the price increase in prices of commodities, and the decrease of the purchasing power of money. Inflation rates are constantly rising because there is less credit available, and the government prints more money to make up for the cash deficit. In addition, the value of paper money is highly dependent on the financial market, which is also constantly changing. For instance, people who have invested their money in stocks can loose their investments literally overnight.
Gold, on the other hand, has a high value and is becoming a dependable asset to invest in over the recent years. Despite the changing economy, the value of gold is not affected as currency, especially the U.S. dollar. Because of the stabilization effect of gold, one is less likely to experience a severe flop in their investment portfolio. The continuous depreciation of the dollar and other currencies due to economic problems is another reason to consider gold. The value of gold keeps on increasing, making it a viable investment that will give potential benefits over time.
Since gold is mined, it becomes scarcer, making it even more valuable as years pass. Also, the trends of gold over the years are consistently high performing, which serves as further proof of the advantage it can offer for the long term. Since gold does not rely on the performance of other assets, it is not drastically affected by the changes in the financial market, making it a more stable and profitable investment.
Since gold is tangible and it has a more stable place in the market, you are more likely to reap benefits over the long haul. Finally, seeking the help of a professional can help you in the decision process of gold IRA investment, so you can be more familiar with the marketing trends, and learn the benefit. By changing your plan to a self-directed IRA, you can start to roll over gold into your IRA. Because of the stability gold offers, an IRA backed with gold can be one of the best decisions you will make for you and your family’s security.
FEDERAL RESERVE’S ROLE ON GOLD IRA
As many people engage in active employment, retirement slowly creeps up on them. In such times, you can survive on what you previously saved over the course of your lifetime, and while you would wish to have the retirement you deserve without hassles and stress, inflation and other economic recessions can do heavy damage to your resources.
Inflation can reduce the purchasing power of your money, and even render your assets significantly devalued. Instances such as those witnessed between May 2012 and May 2013, when there was a 7.45% increase in dollar circulation, back this idea. Not to mention, the government is able to print as much paper money as it wishes, at no cost, as Ben Benanke, the Chairman of the Federal Reserve, says.
The issues of inflation and economic downturns raise the question, how can you protect your account from inflation and economic recessions? The best action to take is to open a gold IRA account and roll over your cash investments to gold-backed IRA. Gold is a precious metal with an intrinsic value that, over time, can shield your account against inflation pressure.
Records show that gold has survived numerous economic turmoil owing to many advantages it has over paper money and other investments. With its mark of power, wealth, and beauty, gold appreciates with time, and provides valuable economic returns; there are many advantages to having an IRA gold-backed account.
First, gold is one of the most traded assets among the precious metals, such as silver and others. Gold is very liquid, and many people trade it across the globe at any given time. Therefore, based on your buying and selling time, you can garner significant profits from the trade.
Secondly, it can protect your account from inflation. Compared to other IRA investment options, such as stocks, real estate, or liquid money, gold is not affected by inflation. While others fall below the average, or fail to pick up completely, gold remains stable economically, and this makes it invaluable during economic crunches.
The third reason for opening a gold-backed IRA account is to diversify your investment resources. Instead of having all your resources in one area, such as paper money or real estate assets, whose value can drop with time, diversifying your account with gold is a sure way to protect yourself from currency devaluation. Gold cannot be printed like paper money, and therefore it will continue appreciating in economic value.
The IRS has created opportunities for citizens like you to own gold in tax deferred accounts, like IRA’s. Take advantage of the opportunity by having an account, and protect your investment resources for the future.
If you’ve made it this far, you may be starting to see why you should include gold IRA in your portfolio.