Gold continues to play a pivotal role in today’s marketplace as the most appealing of precious metals. It remains a mark of prosperity and wealth due to its rarity and perceived value. The price of gold has more than quadrupled in relation to the US dollar since 2001, reaching $1,913.50 in 2011.
Why Invest in Gold?
Gold will continue to hit record highs for many
years to come when ANY of the following occurs:
- Stock Market Failure
- More Foreclosures & Unemployment
- Currencies Fail
- Inflation & National Debt Continue to Rise
Because of gold’s revitalized momentum, it is widely perceived as a sound investment medium in an age where paper currency has proven to be unstable. Gold is recognized as providing protection against paper currency devaluation and other adverse effects of government overspending and unsound policies. A gold IRA rollover is therefore becoming a more popular option among investors as a means of protecting their retirement accounts or those planning to diversify their portfolios.
Before you continue reading this gold IRA rollover guide, we highly recommend you to watch this video about the history of hyper inflation and the importance of gold…
Gold IRA Rollover Protection
The stock market provides further justification on choosing to invest in gold. Consider the recent trend of the New York Stock Exchange in evaluating the security provided by a gold IRA rollover. The Dow Jones Industrial Average, which indexes trading performance on the stock market, reached its peak in October of 2007, closing at 14,164. The Great Recession of 2008-2009 quickly followed, which caused it to hit 11,000 in April 2008. It continued to plummet, finally bottoming out at 7,552 in November 2008.
This was understandably painful for investors whose retirement funds were dependent on those stocks. Shareholders rushed to get out of the market. Many stockholders suffered total loss in the value of their investment. In contrast, those investors who opted for gold IRA investments were unaffected by the Dow’s decline.
Some experts are predicting another crash in the near future, which makes a gold IRA plan increasingly attractive. Reported warnings concerning the recent bull markets indicate that the end is near, suggesting that investors seek alternative vehicles, including precious metals such as 401k to gold IRA rollovers. This is particularly relevant to those nearing retirement, where a large drop in the value of their portfolio would be devastating.
Advantages of a Gold IRA Rollover
In relocating a 401K or other retirement instrument to a precious metal investment such as gold, you can protect the value of your portfolio against disastrous drops inherent to other investment vehicles. When gold prices rise, it reflects negatively on the overall health of economy and indicates there may be some threat to international economic stability, such as oil supply disruptions or wars. Choosing to invest in gold during these times makes sense because it involves very little risk and is unaffected by these factors.
The price of gold rose 32.8 in 2011, which was preceded by double-digit increases in each of the previous years beginning in 2008. This increase was primarily a result of investor activity on the precious metals market in the form of gold IRAs, in addition to other vehicles that maintain their value regardless of general currency supply. Continued investing of this kind eventually pushed the price of gold up by more than 50 percent in September 2011.
Gold reveals its true significance as a guard against devaluation in times of high inflation, producing returns of more than 130 percent. Compare this with the average stock market return, which is -12 percent. In times of inflation over the past 10 years, gold has more than doubled in value.
Top Benefits of a Gold IRA Rollover
|1||The ultimate protection against inflation and stock market losses|
|2||Tax free until it comes time to start taking your withdrawals|
|3||Having someone that will guarantee you that they will buy back the gold is a good insurance|
|4||Gold IRAs are self-directed. That means that they aren’t controlled by an employer|
|5||Gold IRAs do not require much maintenance|
Gold IRA investing is very similar to any other individual retirement account vehicle. The primary difference lies in the actual physical gold bars or coins held by the account, as opposed to paper currency. You must transfer your current IRA or 401K through a rollover procedure that the Internal Revenue Service has approved. It is tax-free. Your gold is stored in a secure facility until you decide to act upon it by either having it shipped to you or selling it for cash.
It is not difficult to use standard retirement funds in a gold IRA. When you have made the decision to shift your 401K or other retirement account, it is simply a matter of selecting the proper gold IRA company to perform the transfer and become trustee to your investments.
The company you select will be the custodian of your gold IRA retirement funds and will provide you a set of asset plans available for purchase. All that is required is for you to fill out the relevant paperwork to open your personal IRA with your chosen custodian. Write a letter to your chosen custodian informing them of your desire to have your existing IRA or 401K funds transferred into a new gold IRA account.
Standard IRA or Roth IRA
You can select either a standard IRA or a Roth IRA. In a standard IRA, you invest your funds in a tax-free manner until you choose to withdraw them. With a Roth IRA, the rollover is applied after taxes are assessed and can then be withdrawn tax-free. In either case, the transfer of funds must be complete within 60 calendar days of the funds being removed from your initial IRA to avoid large fees or fines imposed by the IRS.
Choosing the company to handle your 401K to gold IRA rollover
This part is crucial. Make sure you you have done a proper research before deciding on which gold IRA company you are going to trust. Click here to read about how to avoid hidden fees and how to minimize the risks involved when investing your retirement funds in gold. We also highly recommend that you download the FREE gold IRA investment guide from Regal Assets that you’ll find below.
Click Here to request your FREE gold IRA investment kit!