If you’ve been following the financial markets, you’re probably more than a bit worried about your retirement savings. The stock market rises and falls at scary levels and who knows if the U.S. economy is really in good shape.
With trillions of dollars of government debt – and increasing by billions even while you are reading this – there is no way that our economy can be anything other than a gigantic Ponzi scheme. And we all know what happens to Ponzi schemes in the end.
So what investment class is looked to when things get dicey in the world economy? Gold…
Investing In Retirement Gold
Most people today do not think of gold as one of the options for retirement. Most believe that a retirement plan should just be in the form of money and good saving plans. They just don’t have any idea about what we call retirement gold. They don’t have any idea that gold can be a very great investment for retirement.
Why invest in retirement gold?
Gold has been considered to be not only a currency, but a store of value, aka money for thousands of years. Governments can debase currencies through over printing (sound familiar?) and inflation is generally the result. Gold is money maintains its value in times of inflation.
If your investments are strictly paper, that is stocks, mutual funds, bonds etc. they can suffer the ravages of inflation or be wiped out over night.
Gold, throughout the centuries has held a special place with man. The yellow metal has been used as money for 5000 years and unlike currencies, has held value the whole time.
The US Dollar on the other hand is a fiat currency and loses more of its value every day. The paper in your wallet has no intrinsic value and since 1971 is not backed by gold. The dollar is only backed by the credit of the US Government. Doesn’t that make you confident?
Now the dollar is not the first fiat currency doomed to failure. Every fiat currency ever devised has failed. Why? Because governments though out time could not resist the urge to print more currency. When a currency is not backed by gold for example, a government feels free to create more “money” out of thin air.
The problem is that the more currency a government prints, the more devalued the paper becomes. And at some point, the public loses confidence and flees from it. This is the precursor to hyperinflation and when even more massive currency printing takes place as the government tries to keep itself afloat. While hyperinflation is by no means a certainty, many experts say that it is a very good possibility.
Hyperinflation effectively destroys your purchasing power and the value of your savings and investments. Virtually anything valued in the fiat currency becomes worthless. Only those who own real assets, hard currencies and precious metals will avoid major losses.
This brings us back to gold. A devalued dollar increases the value of gold and other commodities by increasing the purchase power of non-dollar using countries. Gold also increases in value with a weak dollar as investors drive the price up looking for a new store of value.
Even billionaires and money managers including Jim Rogers, Thomas Kaplan, David Einhorn, Seth Klarman are stocking up on gold as we speak. Do they know something you don’t know?
- Gold is money.
- Gold is tangible.
- Gold has real world uses
- Gold cannot be manufactured
- Gold cannot be deleted from a computer
- Gold is a hedge against inflation and economic collapse
Historically, gold has moved counter to the direction of stocks, bonds and mutual funds. Gold is the ultimate asset and is the purest form of money. We’re no talking about just another paper asset, but actual physical gold that’s held on your behalf.
Governments can’t devalue it and it has no board of directors, politicians or central bankers to tinker with its value. That’s why gold has preserved investors’ purchasing power over the last 5000 years, surviving every economic crisis.
How about inflation?
Retirees are often left at the mercy of inflation. The same money they worked hard for 20 years ago has already lost much of its value now!
Good news! There have been many times when gold increased while the dollar decreased in value. Inflation makes the monetary value of gold even bigger… partly because of the erosion of the dollar’s value.
But beware. Like many other investments, gold also fluctuates.
The prices for gold will vary from time to time, sometimes, gold will be worth some money and some other times, it will be worth ten times more than what it was paid for. When the prices are good to buy gold, it will be best to look into this investment option. However, it is the same when it comes to selling the gold in the future because the prices will vary and sometimes, the prices will be better than at other times.
How much should you invest in retirement gold?
Here is a simple answer. Gold retirement investment varies from 5% for conservative investors to 30% for gold bears.
One thing is important to know, gold, is a great investment option for the future especially for retirement. It could even have a great pay off and could lead to an early retirement! It just depends on the circumstances and many other things. It really is worth everybody’s times to think about investing in retirement gold.
How to invest in gold for your retirement.
Short of stocking up precious metal coins and bars stored in your home safe or pickle jar, there is an other excellent option.
A Gold IRA
A Gold IRA is simply a retirement account that holds approved precious metal bullion and coins instead of “paper” investments. The metals are held by a third party in a secure facility on your behalf. Currently Gold, Silver and Platinum American Eagle coins, Australian Kookaburra coins, Canadian Maple Leaf coins, as well approved bars and rounds are IRS approved for a Self Directed Gold Coins IRA.
Gold IRA 101:
There are rules that have to be followed to set up a tax compliant gold IRA. But it’s not that difficult to do. Some gold investment companies will help you with the set-up, and a few will even do it for you.There are some restrictions on the forms of gold and other precious metals that you are allowed to have in your IRA, but the allowed types include most of the common bullion bars and coins. The exceptions are mostly the rare collectible coins, and I don’t recommend you invest in these anyway, unless you really know what you are doing.
To get the tax benefits of an IRA, you can’t physically hold the gold or other precious metals yourself, because the government considers these as cash. You have to store your precious metals in a government approved private depository of your choice. But – as long as you choose an IRA custodian which offers segregated storage – you own your own specific chunks of metal, as coins or bars, and you can access them physically as soon as you reach 59 ½ years old, if you want.
If you have a traditional or a Roth IRA, or a 401(K) plan from a previous employer, you can arrange to have some of your IRA assets transferred from that plan directly into your new precious metals IRA. You can also arrange a rollover of funds, opting to receive a check for part or all of your current IRA and using this money to fund your new gold IRA.
One of the best gold IRA companies to help your with this, is Regal Assets. They will arrange the entire transfer process with your existing IRA custodian, setting up your precious metals IRA with the metals of your choice. Regal Assets also offer segregated storage (meaning that your gold and other metals are designated in your name and not just mixed up with the investments of a lot of other people), and everything is fully insured for extra safety.
You can learn a lot more from Regal Assets’ gold investment kit (it’s free) which you can get here.
Why not get the gold investment kit anyway – it’s full of useful information about gold and precious metals investment, as well as about setting up your precious metals IRA. Regal Assets are specialists in this area and they have experienced advisers who can answer your questions and help you work out the best investment mix for your own needs and the current economic climate.