Why Put Your Retirement Money into Gold?
Did you know that you can actually use tax-advantaged retirement accounts like the IRA and the 401k to invest in gold? Why, you might be wondering, would anyone want to do that in the first place? Some people think of gold as a rather archaic, outdated investment in the times of real estate, stocks, and bonds. However, gold can be an excellent investment option, especially for retirement accounts.
We’re not saying that you should put every penny of your allotted retirement cash into gold, but investing at least a certain percentage into this type of thing can be an excellent idea. The main reason for this is that gold goes against the grain of other investments. When the market in general is falling, gold almost always rises – sometimes its price positively skyrockets.
A lot of retirement investors who are getting close to the age where they wanted to retire are now having to delay retirement because all of their stocks and bonds took major hits over the past few months. If these same investors had had some money in gold, they wouldn’t have to delay retirement. The extra rise in the price of gold would have let them remain financially stable until some of their other investments started to rebound.
So, if you’re interested in using precious metals as a retirement investment, you should talk to someone who knows how to run these accounts today. Like other tax-advantaged investments, there are lots of rules to follow, but it is generally easy to jump through all the right hoops with a little help.