Why Investing In A Gold IRA Could Give You Peace Of Mind After Retiring
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Are you worried about financial security in your retirement years? Are you concerned that you’ll become a burden on your children when you reach your 60s? If so, then you aren’t alone! Everyone likes to retire with a plan. We want the peace of mind that our future is secured.
As per the analysis in 2017 by the Government Accountability Office (GAO), the average retirement savings for Americans between the ages of 55 and 64 was $107,000. That’s not a lot of money, given how expensive healthcare and other living costs have gotten.
There are different types of investment strategies you can opt for to secure yourself out of which gold IRAs are a popular option. Here are all the reasons why you should consider buying a gold IRA account for your retirement.
Some people believe in investing in assets such as real estate or shares. However, such investments are prone to drastic depreciation and economic shocks. For instance, in case of a business loss, your stocks may become valueless. Gold, on the other hand, has never been and will never be.
According to statistics, gold has seen a significant rise since 1990 without any serious decrease in its value. Gold IRAs provide economic security and protect you against economic shocks and financial setbacks. They act as an insurance policy at the time of retirement.
Potential for Growth:
The prices of gold work in the opposite direction of stocks, bonds, and mutual funds. The factors that affect the value of stocks work in favor of the value of IRAs. A turbulent economic change can increase the profit potential for precious metals.
According to the World Gold Council (WGC), the value of gold has improved significantly, surpassing inflation and short-term bonds. Hence, it’s clear that not only does gold maintain its purchase, but it can actually result in a profitable investment. This makes gold IRAs more efficient than cash.
IRAs are savings accounts that offer a huge tax break to its owners, making it an ideal option to store wealth. IRA is taxed as collectibles. Any gain on collectibles held for more than one year is treated as ordinary income whereas the maximum tax rate is 28%.
Tax isn’t applicable to the profit received by selling gold within an IRA account until the money is distributed to the taxpayer. The cash distributed is then taxed depending on the tax rate of the owners.