Gold IRA Rollover:
A gold IRA rollover is a special type of account where you can transfer an IRA to another account . IRA accounts are purely personal and private way to help you prepare for your retirement . Typical American jobholders are secured in retirement by Social Security and pension plan of their employers . Unfortunately , due to unstable and uncertain US economy , the employer’s pension scheme can no longer be relied upon when you are 65 and above .
Furthermore , there have been a current trend among US corporate to raid the pension plan of employees . Good old days are gone when your father or grandfather used to retire with a fat pension from their employers . You might not get a private pension plan at all .
On the other hand , Social Security can only protect you up to a certain extent . If you really want to protect your wealth after retirement , you must setup an IRA or 401k.
Rolling Over Your IRA to Precious Metals IRA:
A gold IRA rollover account is generally a non-gold IRA account rolled over to a gold IRA account . There are several investment options such as equities , stocks , bonds , real estate , precious metals and so on . Typical Americans usually invest in equities or stocks and bonds in their IRA . This is because the appreciation rate and growth explosion of these types of investments are very lucrative.
But gold IRA brings in some inherent traditional advantages into the play . So , the question is ……….
Why invest in a physical gold IRA?
You are in a rare company if you are thinking about investing in physical gold IRA . People do get tempted by the awesome returns of stock markets during a bull market . However , if you scrutinize the past stock market meltdowns , you will see that extreme growth and speculations was already there .
Taking this factor into considerations , now we can discuss how investing in physical gold IRA can help you protect your wealth.
1) Reduced Speculative Loads :
People have a tendency to borrow money to play stock market . When something does go wrong , the effect of these aggregate borrowings are felt by the overall economy . While speculating , people think that they are the only ones affected whereas actually their actions have an impact on the overall investment community and the marketplace due to multiplying factors . Many reports have indicted that this behavior is prevalent in global stock markets in recent times. And the option of having marginal investment opportunity creates a speculative overload. In this scenario, if an investor has one million dollar with a broker , he has an option to borrow as high as 50% more from the broker making his aggregate investment amount 1.5 million dollars. This leads the investor into all sorts of risky investments. People play with the borrowed money – the money that they do not own . They try to pay back the interest as quickly as possible leading to even more risky investments. Physical gold IRA accounts can save you from risky investments driven by irrational speculations .
2) Gold IRA is a Classic Insurance :
Investing in physical gold IRA can help you protect your protect your investment portfolio. It acts like an insurance . Even if the majority of your investment portfolio comprises of equities , stocks and corporate bonds , your 25-305 hedge with physical gold IRA can protect you from insolvency if the there is a severe market crash . How ? It has been proven that the harder the market crashes , the value of your physical gold IRA will spike higher . If the market crashes awfully enough and the price of gold spikes high enough , you might end up breaking even on a dollar-to-dollar basis for the year . Breaking even among surrounding financial carnage definitely a great deal .
3) Gold helps you recover from massive financial disaster :
It is when you sell your stock holdings that you really loose money in stock market . Most of the retail traders buy stock on margin . In case of a stock crash , they are forced to sell their stocks to clear their debt . However , disciplined traders only spend money that they actually have ( not borrowed money ) and hence they can afford to hang on to their stocks until the market reverses itself. People who suffered loss in 2008 but hung on to their stocks are still making money even six years later. Selling the stocks quickly after you suffered loss is a sure way to lose in stock market.
What gold IRA rollover does is that its inflated price gives you enough liquid cash after stock market crash to take advantage of stocks that are temporarily depressed in value. The use of gold thus not only ensures you against stock market losses but also you can use the gold to take advantage of the depressed stock market.