The Social Security was created for the welfare of the employees. It gives employees peace of mind knowing that by the time of their retirement they will have money to spend. Pretty awesome, right? Well, not really. The future of Social Security is getting shakier every single day. It is important for you to make sure that your retirement savings is protected. One way of doing so is by adding gold to your retirement plan.
What is an IRA?
The Individual Retirement Account or IRA is a retirement plan that enables you to make tax-free contributions. As an account holder, you have the option to invest in various investment platforms as long as it is supported by the IRA. In 2013, the investor should have $5,500 annual investment cap for account owners below 50 years old. If you are over 50 years old, your annual cap is $6,500. Your IRA contributions can be invested in different ways and it includes gold and precious metals alike. Investing in gold is a good decision because gold is one of the best performing assets. In times of economic crisis, gold has the ability to retain its value.
Follow these tips when investing in a gold IRA
• Not all retirement plan allows you to add precious metals in it. If your current IRA does not allow you to add gold, then don’t worry. You just have to rollover your account to gold IRA. From there, you can start adding gold and any precious metals supported by the IRS and IRA.
• You have to carefully choose an IRA custodian or so known as the precious metal company. Make sure that you deal with a highly reputable company, someone who can look after the best interest of your investment. On top of that, you have to carefully choose the types of gold you add to your account. Take into account your current financial position and your retirement goals. If possible, ask for opinion of a financial expert.
• When adding gold to your IRA, you have to be aware of the limitations. You cannot just add any types of gold you want. The IRA has a strict requirement when it comes to the quality of gold and other valuable metals. As with the gold coins, they must be the finest. The gold should be considered legal tender in the country of origin. Some of the accepted gold coins include the American Gold Eagle, Australian Gold Kangaroo, and Canadian Maple Leaf.
• It will be an advantage on your part if you are going to diversify your investment. A gold IRA is one of the best ways to diversify your investment portfolio. However, you should not focus on gold alone. You can get the most of your retirement plan if you are going to spread your investments across various portfolio. When it comes to adding gold though, you will have peace of mind knowing that in times of economic crisis, your hard-earned savings is protected. Aside from gold, you can also add other metals like silver, platinum, and palladium.