One of the biggest mistakes you can make, especially if you’re the breadwinner, is failing to prepare for retirement.
Not only will it affect your future but also your whole family’s.
Without enough retirement savings, you can end up relying on your family to support you, making it difficult for them to save for their own future.
Investing your money is an excellent solution to this problem. The good news is you have several investment choices.
You just have to ensure a low capital risk so as not to put your money to waste.
Are gold IRAs a good idea?
This isn’t an uncommon question for those who want to safeguard their and their family’s future.
A gold individual retirement account (IRA) is one option that financial institutions, such as banks and companies like Augusta Precious Metals, offer to those who want to save for retirement.
What Are the Pros and Cons of Gold IRAs?
When you spend your hard-earned money on specific products, like gadgets and appliances, you take some time to research their features, specs, and overall quality.
If you do this, then you know it’s even more important to do the same before investing your hard-earned money in gold IRAs.
To know whether gold IRAs are perfect for you, we need to look into their benefits and drawbacks first.
Pros of Gold IRAs
Gold is one of the precious metals with a long history of being a form of investment, and for good reasons, including:
Inflation Hedge
In 2021, Bloomberg reported on the financial experts’ forecast of U.S. inflation in 2022 for many reasons, such as supply chain issues, which are now proven true.
Data shows that inflation as of October 2022 is still high at 7.7 percent.
The problem with this number isn’t just the weak purchasing power of your money but also the worst effects of inflation, which are recession and economic collapse.
The best hedge against inflation and its effects is gold because of its reliable store of value; in fact, gold prices usually increase during times of economic uncertainty.
Long-Term Security
Gold investments are a smart choice if you want to achieve financial security the moment you invest in IRA-approved gold for your retirement (and beyond).
Ingots and bars of gold and gold coins have been around for centuries and used as a medium of exchange, and it’s predicted to stay for thousands of years more.
That is because of the high appeal of gold in creating decors, jewels, electronics, and other products.
The medical industry also benefits greatly from gold, such as in the treatment of rheumatoid arthritis and the production of dental implants, other dental products, and medical devices.
Also, BBC reported, which a study also confirmed, that gold nanoparticles are among the most promising cancer treatments.
This increasing industrial use of gold and even as a form of currency means it’s a stable asset.
Diversification and Protection
IRA-approved gold investment is an excellent way to protect your retirement assets and your entire retirement portfolio.
For years, the performance of gold has proven that it doesn’t usually correlate with the variety of assets available, such as mutual funds, bond funds, and stocks.
Statistically, gold bullion has approximately 0.25 correlation (low) to the stock market.
So, if the stock market falls or collapses, it will only slightly affect your gold retirement assets or not affect them at all.
This ensures you’re protected from potential losses without sacrificing liquidity or returns.
In relation to that, self-directed gold IRAs will ensure your success because they allow you to diversify your retirement assets or portfolio.
With your IRA, you can invest in IRS-approved physical precious metal coins, cryptocurrency, real estate, and other alternative assets that will gain interest through the years.
Tax Benefits
With self-directed IRAs, you’ll enjoy tax-deferred or even tax-free profit gains.
Based on current gold IRA taxation rules, you’ll only usually get taxed for retirement fund withdrawals.
So, it goes without saying that taxes won’t eat away at your “savings,” ensuring the stable growth of your retirement nest egg.
Cons of Gold IRAs
Of course, gold IRAs aren’t perfect. There are also disadvantages that you need to make a note of, such as:
Multiple Fees to Pay
Based on gold IRA regulations, you can’t keep the physical gold you invested in inside your house or office and even in your safe deposit box.
You would need an IRS-approved custodian or a one-stop-shop company where you’ll sign up for an account and more.
They will keep your investment safe and secure, so you would need to pay insurance, annual maintenance, and storage fees.
Besides those, some companies also charge brokerage and seller fees. Also, a cash-out fee is required if you decide to close your account.
Like with other retirement accounts, there is a 10% penalty fee when you take your gold out from your IRA before the age of 59.5.
You are also required to pay an income tax based on the gold’s value at the time of early withdrawal.
More Difficult to Liquidate
When deciding whether your answer to “Are gold IRAs a good idea?” is a yes or a no, you need to consider if you’ll need it as a quick source of money.
Compared to stocks, bonds, ETFs (exchange traded funds), and mutual funds, you can’t liquidate your gold funds or assets with a simple click of a button.
That’s why ownership of gold bullion coin or bar assets is for the long-term.
Are Gold IRAs a Good Idea?
While gold prices also increase and decrease, it’s still considered the best safe-haven asset because of its history of long-term appreciation.
Also, the value usually bounces back to its original price or even higher a few months or so after it depreciates.
So, yes, gold IRAs are a good idea if you want long-term protection of your assets from inflation and stock market volatility or frequent market fluctuations.
You are assured you have enough money for your retirement years by the time you withdraw or liquidate your gains.
Where Should You Purchase Your Gold Investments?
With several gold IRA providers you’ll come across today, Augusta Precious Metals is one of the most trusted precious metals dealers.
It has strong financial backing, more than a decade of experience, BBB accreditation, and an A+ rating.
It is also a long-term partner of Kingdom Trust, a trust company that has been managing billions worth of assets for years.
Why Augusta Precious Metals?
As a third-party dealer, you can purchase gold investments, even silver, from its partner IRS-approved sellers.
The company will also give you the option to keep your investment in the Delaware Depository or other partner custodians.
Its partners are all well-respected in the industry and have the necessary licenses.
Security is also tight. Augusta Precious Metals uses state-of-the-art security technology and has stringent access guidelines and controls.
Once you decide to have your investment transferred to any of the storage facilities, you must inform Augusta.
They will ship and deliver it safely within seven to 10 days of your request, free of charge.
Not only that, but the company is also authorized to sell gold and silver coins, even the rarest types, with or without opening an IRA account.
This means you can diversify your retirement and investment portfolios under one roof.
Augusta Precious Metals also provides coin-collecting services you should take advantage of, whether you’re a collector or not.
After all, collector’s items are also great long-term investments.
Moreover, the company can help you determine the current value of your coins through its grading services.
Focusing on an education-focused approach, it has several educational resources on its website to help you learn more about precious metal investing.
You will also get assigned a personal account manager to help you choose the right products for your specific needs, plans, and goals.
The manager will guide you through the investment process, from start to finish and beyond, and answer all your questions about paperwork, fees, and procedures.
Other Prepper Investments Available
Your gold IRA investment can solve one of the common failures of working individuals.
However, you don’t want to withdraw it earlier than you need to due to health and other family emergencies.
COVID-19 is one proof of this.
Case in point: Around 62% of Americans spent some of their saved retirement funds during the pandemic on food, bills, and other basic monthly needs.
To protect your family and your retirement funds, you need to have other forms of investments to earn a passive income you can tap into during these situations:
Precious Metals
Apart from opening a self-directed individual retirement account to own gold assets, you can purchase other precious metals.
The best examples are silver coins, bars, or ingots, palladium, and platinum since they are scarce, beneficial assets. You can sell them as and when you need them.
Like gold IRAs, they are also long-term investments.
High Yield Savings Account
With proper research, you’ll find that some banks have high savings account interest rates you should take advantage of to prepare for your future needs and your family’s.
Although bank interest rates are usually affected by inflation, the purpose of having this kind of account is to have an easily accessible liquid fund for rainy days.
Make sure you only use it during real emergencies, such as losing a source of income and paying for hospital bills.
Also, don’t forget to replenish it as soon as you get back on your feet.
A bank savings account is as secure and safe as it can be because the only reason you lose your money is when the bank becomes bankrupt.
Nonetheless, insurance protects your money, amounting to around $250,000 per account holder.
Real Estate
What better way to protect your family and yourself even when the economy collapses than having a house of your own?
If you have enough or extra money to pay off your mortgage, make sure you prioritize it.
You and your family won’t have to worry about increasing rent prices or finding a cheaper place to stay when the price rises.
Your home is also a tangible, long-term investment from which your children or grandchildren can profit in the future. They may choose to rent it out or sell it.
Barterable Skills
Who says tangible items and money are the only forms of investments?
Investing your time to gain new knowledge and learn new skills can be one of your best safety nets during hyperinflation and recession.
In June 2022, CNN reported that as inflation continues to rise rapidly, the current trend in the increase of worker wages won’t be able to catch up.
As such, many working individuals still won’t be able to save enough or, worst, open a savings account.
A September 2022 survey proved this to be true. The numbers showed that 63% of Americans still live from paycheck to paycheck.
Consider a set of skills that most no longer try to learn or develop. You can then exchange that with food and other essential supplies in times when prices are too high.
Some great examples are sewing, auto repair, plumbing, and carpentry. Of course, you must also purchase the necessary tools and supplies to perform the job.
They are tangible investments because you can sell them in the future, especially since their prices also don’t usually decline.
While you still can, these skills will allow you to have an extra income you can save for future use or even use to purchase other investments or open a gold IRA.
When you start to build a good customer base, it can even become a family business that the next generation can benefit from as a primary or secondary source of income.
Invest Now To Ensure a Good Future!
Working five days (or more) a week isn’t a guarantee that we can save for our own and our family’s future, let alone for our retirement.
Employer-sponsored retirement plans are available, but you can’t solely rely on them because of inflation, job instability, business closure, or the possibility of companies like SSS running out of funds.
Having long-term investments, such as self-directed gold IRAs, that you can acquire from banks and IRS-approved companies won’t fail you in the future.
Since it allows you to purchase other short- and long-term alternative investments, you will also be able to protect your family’s future.
As a beginner, we recommend working with a company like Augusta Precious Metals. They are one of America’s fastest-growing gold IRA companies today.