Retire with an IRA Gold Coin Investment
A gold coin investment retirement account can be one of the best ways to insure your financial future. There are many kinds of investments that can yield excellent results.
There Are Risks in Gold Investment
However, they often come with significant risks. This does not happen if you invest in the right type of precious metal. Here is additional information to consider. Most people choose precious metals for investing for good reason. There is very little risk. In fact, it is one of the safest ways to invest your hard earned income. The value of precious metals fluctuates very little and they cannot be manufactured. There is only so much on the planet. You have absolutely no chance of a market saturation which would bottom out the value. Precious metal coins are a safe all around way to invest your money. For example, if your assets are sitting in US dollars, their value is subject to a lot of fluctuations. It is almost impossible to determine how the dollar will perform in the distant future, when you need it most.
Options for Gold Coin Investment
When you decide to open a gold coin investment retirement account, you have only a few selections. This is assuming that you wish to invest in an IRA. Investing in an IRA provides important tax benefits, and is one reason why they are so popular. Gold coins that the US government accepts for IRA accounts include the Canadian Maple Leaf, Australian Philharmonic and Kangaroo. You also can use the United States Buffalo and Eagle.
Rollover 401k or IRA to Gold Investment
If you wish to transfer or rollover your existing IRA to one of precious metal coins, it is not too difficult. You also may use other accounts like the 401K for your rollover. In most cases, you need to start a self directed IRA. However, this is not always possible if you are still with the same employer with your original 401K or IRA. A self directed IRA means that you exercise control over the investing. However, if you are buying coins you cannot keep them at home or even at a safe place. They must remain in the possession of your IRA trustee. This includes ROTH and traditional IRA accounts. If you are thinking of your future, a gold coin investment retirement account is an excellent choice.
Price of Gold
Gold is Safe
Gold is perhaps one of the safest and surest investments that you can make. However, be sure that you are aware of all the rules and requirements, and talk to your local financial professional for sound advice.
In Uncertainty – Choose the Right Investment
In these uncertain times, your retirement plan may go belly up if the ailing government has anything to say about it. You may already be feeling the crunch as inflation, falling market rates and uncertain employment rates set in making it next to impossible to save for those ‘golden’ years. This is why investing in precious metals is considered to be the longest lasting commodity for many middle aged and nearly retiring individuals (click here for more information). Compared to stocks, they have proven to be greater in value due to the following reasons:
Even though investing in precious metals (such as gold coins for 401k/IRA) is not subject to trends in the market, it cannot be affected by economic factors. In fact, most professional investors suggest that any long-term investment goal should encapsulate 10% of gold and silver investments (such as gold bullion, gold coins, rare gold, silver bars, silver ignots) in as many mediums as possible for a wholesome and long lasting tenure.
Stocks, on the other hand, are not considered reliable in this regard. Since they are classified as ‘equities’, the stockholder actually owns a part of the company that introduces one in the first place. (Precious metals are ‘commodities’, which means that if you own some, you are actually the owner of a particular physical product). They can only make money if that stock experiences an increase in profits or if their business expands. Investors interested in precious metals benefit when their demand increases since their spot price rises as a result irrespective of market trends.
Besides this, the profit you make will be entirely dependent on the kind of stocks you invest in. You might even have to wait a while before you can resell them. Plus, selling your stocks even when they are at an all time high might prove disastrous, while letting them go when there is no demand for them might be a wise decision.
This kind of uncertainty is visibly absent in precious metals which are basically ALWAYS in high demand even if their costs aren’t all that high. The reason for their unmitigated popularity lies in their scarcity which is especially true for platinum and gold. However, prime profits can only be achieved if you find buyers (who are always available for this sort of investment) who are willing to pay well for them.
Stocks also have an unfortunate tendency of losing their value completely if the company that offered them goes bankrupt. On the other hand, since precious metals don’t belong to a particular entity or enterprise, they rarely if ever lose their value. Take gold for instance. If you plan on setting up a 401k gold investment or an IRA gold investment plan, you can rest easy because unless interest drops radically that demand falls for it, you WILL be able to profit even if you decide to sell it early. Plus, even if stocks fall considerably, the value of gold, silver and platinum either remains stable or spikes significantly simply because the people across the globe rely on them during such economic downturns.
Creating Your Retirement Nest Egg
Creating a small nest egg for yourself to last you in your retirement years may well be the new American dream. Not only do you have to make sure that you save enough, but you also need to manage your retirement accounts to ensure your investments remain in the green and do not actually lose value – ie you need it to grow at least at the rate of inflation to retain the same buying power each year. Two of the most prevalent retirement plans in the nation include the 401(k) and the IRA or Individual Retirement Arrangement retirement plans. If you want to invest in precious metals or in gold coins for 401k/IRA, you have to be aware of a few things:
The 401(k) Retirement Plan
The 401(k) retirement plan is normally provided by large conglomerates to their employees. A specific amount is deducted from each worker’s paycheck and deposited into the company’s account, which can be accessed as soon as he/she retires. You have three main types to choose from namely:
The Safe Harbor
This allows employees to contribute the greatest amount allowed in the 401(k) provided that the employer agrees to match that amount.
The Traditional 401(k)
This ‘traditional’401(k) retirement planallows employers more options when it comes to employee accounts. In other words, they can choose not to match employee contributions and can even alter the sum the latter deposits if they want to.
Advanced Profit Sharing
These are popular with legal organizations and partnerships since they allow companies to target prominent groups within their structure and reward those employees by giving them different profit shares. In other words, each employee receives a particular payout structure as part of their individual 401(k) plan.
In order to maximize profit, pick plan options that fit your own requirements and upload employee information as well. This includes incorporating loans, automatic worker enrolment, their applicability along with details regarding matching contributions.
IRA Retirement Savings Account
An IRA or Individual Retirement Arrangement retirement savings account is typically offered by companies that have less than 100 employees. The term refers to the set up of an individual retirement account that provides its owner and his/her beneficiaries’ tax benefits that can help them save more and pay less annually. An IRA account can be opened via three means namely:
This is best for those who are not sure where they should place their money and for those who don’t have a substantial amount of funds to invest.
Mutual funds are best for novice IRA investors since they are the simplest options available. You can let professionals pick the best stocks for you and participate in as many investments. You may be required to deposit an initial investment of $1,000 or more to start this account. Use expense ratios to evaluate current management costs for each fund in your possession.
If you are an experienced investor, you can open your IRA at a brokerage company where you can customize your securities or have your pick from thousands of mutual funds. You may be charged a fee for each fund you set up which includes an all charge cost for a low IRA balance along with costs for administering your IRA. You can also include gold, gold coins and other precious metals such as silver in the form of silver ingots, silver bars, silver coins) as part of your investment portfolio.
The World Economy and Your Retirement Plan
Consistent financial inconsistencies and high unemployment rates have placed the entire world on tenterhooks. US economy stagnant. China’s economy slowing. India’s economy slowing. Europe. Well falling into a hole from which it is struggling to climb out of with the assistance of other countries.
Many prepare and wait with bated breath for the next big economic crisis to rain down upon them by looking to their current retirement savings plans along with their particular 401k gold investment and IRA gold investment schemes. Some choose to be conservative with their spending by cutting back on consumer buying and investing in gold coins for 401k/IRA and paying due attention to their retirement plans.
Retirement Plan Setups Face Decline
According to a survey, from 2009 to 2011, the number of workers applying for savings plans fell from 60% to 47%. It was discovered that losses from economic crises such as the European debt crisis on equities, lasted longer for employees who are about to retire rather than for younger workers. Astonishingly, individuals with DB (defined benefit) pension plans experienced steeper downturns and more significant impacts on their own savings plans.
The financial and real estate industries in particular are not in favor of older employees with DC (defined contribution) plans while those with DB schemes are faring better in comparison. In other words, financial crises have cost high wage workers more due to the significant sum their retirement accounts hold.
Precedence Given To Savings
It was also discovered that employees of all ages are now seriously re-thinking their retirement strategies. Three years ago in 2009, the steep market declines compelled many to update their savings accounts even though the higher savings rates dropped as equity returns increased. However, in 2011, the same number of workers decided to save more for retirement, even when equity rates dropped further than they ever had before.
Experts believe that this might have been the consequence of prolonged exposure to consistent economic downfalls. Similarly, mid-career employees with DC plans believe they might also need to enhance their nest eggs with more funds compared to their younger counterparts. On the other hand, due to recent pension cuts, younger DB participants believe they might not have a retirement plan to depend on once they retire if they don’t start hoarding more.
Retirement Delays at All time High
It has also been discovered that older employees are starting to delay retirement plans due to the high and consistently rising costs of health care and even of bare necessities. 64% aged 50 or older stick with their jobs to avail the health coverage their employers offer rather than retire and face an uncertain medical bill in their dotage. Incidentally, The Patient Protection and Affordable Care Act along with its health insurance exchanges might benefit the older working generation by making reasonable health care within their reach.
Besides this, employees nearing retirement claim losses to their savings accounts, personal nest eggs and home values as some of the reasons why they prefer to wait before leaving their jobs.
What it means for you
If you are a participant in a 401 (k) plan, you need to check it to evaluate the amount you may have lost during the recent economic crisis. If you are a contributor, it might be better to change your present contribution rates if you are depositing 100% in Variable A (stocks, bonds, mutual funds) or mixing your contribution for both A and B totaling 100%. Similarly, changing to Variable B can ensure a fixed return in interest on your contributions valuing at more than 8.25%. You might also look to turning part of your investment into gold in one form or another (or silver such as silver coins, silver bars and other precious metals) to hedge against falls in stocks, bonds or mutual funds.