There are a lot of benefits attached to a gold IRA, but this is dependent on what you seek to achieve with it. The benefits of a gold IRA would be examined below to help you make an informed decision.
• A Hedge Against Inflation
The fact that it provides a hedge against inflation is probably one of the top reasons why you should consider investing in a gold IRA. Gold does not fluctuate in value, if anything, it actually works against the US dollar. Thus, the value of gold increases as the value of the dollar drops. The US dollar decreases in value as a result of inflation, hence, investing in gold would definitely serve as a hedge against inflation. This serves as a very secure means to ensure your money does not lose value.
• Less Risk
Compared to a traditional 401k, the gold IRA comes with much less risk. Even though the 401k performs better when the markets are doing great, once the market tanks, your 401k will do the same. In the case of a gold IRA however, the price of gold has remained fairly even over the past decade, with a growth of about 3-4%.
• Portfolio Diversification
Diversifying your portfolio is definitely a great thing to look forward to doing, especially as you attain refinement. It has never been a good idea to put all your eggs in a single basket, and having a gold IRA is a great way to help you avoid that risk.
• Full Control
A gold IRA also gives you full control over your account. It is not the same story with 401k where you would have to leave the account to be managed by the person in charge of it. Even though going with a custodian is a very good option, a gold IRA can be of great value to you, provided you possess the know-how.
• Tax Benefits
The tax benefits of a gold IRA are the same compared to that of a 401k or a traditional IRA. What this implies is that as long as you do not surrender your funds too early, the fund grows tax deferred. Thus, a gold IRA will be a great option if you want to avoid paying upfront taxes on your gains, and in doing so, enjoy some extra tax benefits. If you want to know more about gold IRA, visit ebackers.com.
It should however be borne in mind that you do not have to rollover all of your 401k. You can decide to just move some of it into another account to invest in a gold IRA. If you are looking for a great means of diversifying your investments while at the same time, mitigating risk, then a gold IRA will always be a great option.