Gold IRA May Just Be the Best Kept Secret
Everybody and their mothers know that 401ks and IRAs are some of the most important things to sort out when talking about long-term financial security. IRAs stand for Individual Retirement Accounts—and as the name implies, is one of the main ways a person can secure their future financially.
Traditionally—or indeed, Traditional IRAs work by putting your hard-earned money to work. A person puts a percentage of their income into the account, and that money will then be invested into mutual stocks, bonds, and various other investments that are deemed acceptable by the IRA custodians. Of course, you have full control over what you invest in.
Recently, a new type of investment opportunity has generated interest among those who want to be financially secure—Gold IRA. As the name implies, Gold IRA is notoriously simple. The funds that a person has initially put into Traditional IRA or Roth IRA will simply be moved into a Gold IRA, either with that person’s active participation via something called a rollover, or through a transfer, which is done automatically by your former IRA custodian to your new one.
So what makes Gold IRA different from the regular kind? It’s simple. Instead of investing in mutual funds or stocks—i.e. essentially paper notes, Gold IRA lets you invest your money by buying actual physical gold, and also silver and platinum. The ownership of these precious metals is solely the buyer’s, not the Gold IRA firm. What the firm does is provide the means of buying gold, storing it, and shipping it, if you wish.
The advantages you get from converting your IRA into a gold IRA are multifold. For starters, despite passing though one of the world’s most debilitating financial crises, the price of gold starting from 2001 has risen upwards over 700 percent—and that’s a conservative estimate. Investing in a gold IRA would net you the same gains, unlike in common stocks or bonds.
The most important thing is to look for a firm that is experienced with rollovers and transfers—a good firm typically completes the whole process in 24 to 48 hours. Also, try to find firms that offer their fees on a flat rate, instead of a percentage. You wouldn’t want your yearly fees growing along with your investments.