When you are nearing retirement, it is good to start organizing your money to ensure you have enough money to live on once you retire. But many people do not know or will actually underestimate how much it takes to live after retirement. Most of the investment such as real estate or oil investments that were lucrative 5 years ago, may be more depleted than you think when it comes to live on it. After financial crisis of 2007 and 2008 that galloped many countries, you will find that many investments that seemed to be on trajectory for a good and easy life are no longer lucrative as they used to be.
Due to precious metals continuing to be scarce, and their value and demand increasing rapidly, it has become more and more popular to invest in gold. The fact that the value of precious metals and especially gold will continue to appreciate as it has been always in the past makes it the best investment you can think of.
There are two major reasons why you should choose to invest in a gold IRA;
Unlike other investments, gold investment is never volatile, it is not affected by economic, political, financial and environmental conditions. The price of gold will increase when there is financial and/or economic upheavals. This means that the monetary value of gold rises in all conditions. During inflation, the value of dollar will weaken and the value of gold shoots up. During war or increased gas and oil prices, gold prices tend to increase.
Gold is non-renewable natural resource, it will never be replaced once it has been exploited. Therefore, investing in gold is certainly one of the most outstanding investment.
There are many website in which you can open gold IRA account. In most cases, the custodian of the account is brokerage, bank or an investment firm that provides the account. It is always good to use experienced custodian. For gold coins to be approved by IRS and put into an IRA, they must be 99.5% pure. The 4 most common types of gold IRA accounts are.
Traditional IRA account.
This is the oldest type of IRA account. If you invest with this account, you will start contributing towards your account while receiving tax deduction benefits. The funds in the account are protected against any form of taxation until you withdraw.
The advantage of this account is that it will help you retain capital gains, gain interest, dividends among other benefits, without paying to the IRS, hence more money are directed to your retirement account.
The only shortcoming is that if you withdraw before the age of 59.5, you will be levied additional tax of 10%.
ROTH IRA account.
It was introduced in 1997, the major advantage of ROTH account is that you won’t receive any tax deductions against your contribution to retirement. The returns to investment are always tax free.
Simplified Employee Pension Individual Retirement Account, (SEPRA IRA).
This account ideal for people who are self-employed or business persons with few or no employees. It is ideal for people with high income ranging from $250,000 to $500,000 in a year.
If you own small business or you have small salary, this the best account for you.