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Once you move beyond your 40s and get closer to your senior years, you should have the majority of your retirement wealth accumulated. While it will still be important to increase your wealth gradually, you no longer need to engage in high-risk investments. In fact, you have more to lose at this stage in your life, so it's better to employ a more moderate investing strategy.
Once you recognize that you need to adopt a lower-risk investing style, you may wonder what options are safer for you. The goal should be to protect the majority of your retirement savings while taking advantage of investments that will help you grow more wealth. The most popular type of investment that meets these requirements is investing in precious metals. Gold, in particular, will help you protect and grow your wealth under a variety of different economic situations.
Why Investing in a Self-Directed Gold IRA is the Best Option
If you have a 401k or traditional IRA, you're limited in your ability to invest in precious metals, such as gold. While you can invest in stocks, mutual funds, ETFs, and other paper investments that focus on gold, your investment account can't physically hold gold. This means you will be limited in enjoying all of the benefits that owning gold offers.
That's different when it comes to opening a self-directed IRA. This type of investment account allows you to hold physical assets that the IRS will permit, including real estate, cryptocurrency, and precious metals. Once you roll your funds over from a 401k or traditional IRA, you can use the money in your self-directed IRA to buy gold bullion and coins. As long as you meet the purity standards set out by the IRS, there's no limit to how much of your wealth can be stored in gold products.
Why is gold investing so important? There are actually several reasons to buy gold with your retirement savings. Some of those benefits are listed below.
Combat a Weakening Dollar
Even though the American dollar is among the strongest forms of currency throughout the world, it does lose value from time to time. This devaluation of our dollar was a consistent issue in the 10-year period between 1998 and 2008. At that same time, the value of gold significantly increased. By 2008, gold was valued at $1,000 per ounce. It continued to increase in value and, by 2012, the value of gold reached $2,000 per ounce.
Fight Against Inflation
When inflation occurs, prices soar and currency loses its buying power. If your wealth is stored in paper investments, such as stocks and funds, you'll lose money. This compels many investors to look to other types of assets, such as gold, as a means of protecting their savings. If you already own gold, it will become more valuable due to the increased demand. Since more people will want to invest in gold, your own inventory of precious metals will become more valuable.
Guard Against Political Unrest
Even conflicts in a distant country can affect the U.S. economy since supply chains may be disrupted. In many cases, political upheaval can generate mistrust in the government and a fear of economic collapse. Consumers will change their buying patterns, adversely affecting paper investments. If some of your wealth is stored in gold, you can protect it and ensure you won't lose that wealth. Throughout these situations, there will be greater trust in gold and that will drive up its value even further.
Know the Top Gold IRA Companies in Today's Market
If you're new to investing in precious metals, you may not know how to get started. One of your first steps is to research the gold IRA companies on the market to determine which one you will want to use. By looking at the top three choices, you can learn how to determine which company will best meet your needs.
When researching Augusta, you'll find that they maintain an A+ rating with the Better Business Bureau and high ratings on a variety of other consumer advocacy sites. You'll also be able to read the high number of positive reviews left by their past and present customers.
Boasting more than three decades of experience, it's not surprising that the company is able to serve investors in every state. Additionally, they work with IRS-approved depositories and Equity Trust (a top self-directed IRA service provider) to ensure they can meet all of their customer's needs.
They sell a variety of precious metals, including gold and silver bullion that meets the IRS' standards for purity. Similarly, they sell a wide range of silver and gold coins that can be added to your vault.
Their customer service representatives will work with you from the moment you open your account. They can help you with your rollover and advise you on which precious metals will help you to better reach your retirement goals. They offer a wide range of educational materials that you can use to learn more about investing in precious metals as well. For as long as you maintain an account with them, you can rely on their patient and helpful staff.
In addition to maintaining a consistent A+ rating with the Better Business Bureau and an AAAA rating with Business Consumer Alliance, Goldco has received national recognition and awards for their quality of service. They will assign a representative to work with you in rolling over your savings from any type of retirement account. Their knowledgeable staff can answer any concerns you have about the process.
Once your account is set up and funded, they will consult you about the best products for reaching your retirement goals. While other companies are motivated to make a sale, the Goldco staff is more interested in developing long-term relationships with their customers. This means you will always feel valued and important in your interactions with them.
Goldco sells a wide range of gold and silver bullion and coins. Some of their products may not be suitable for an IRS-approved self-directed IRA, so be sure to specify that you want to buy products for retirement investing purposes.
Like the other companies listed here, Goldco has a generous buyback program that makes it easy to liquidate your gold or silver at retirement age. The company guarantees that they will offer the highest buyback rates on the market so you won't have to worry about missing out on a better deal.
Every new customer will receive a free informational kit when they express interest in opening an account with them. The kit includes multimedia and printed guides that explore precious metals investing. You'll also have access to a wide library of educational materials after you open an account with them.
As a family-owned business that's based out of Los Angeles, CA, American Hartford Gold is also a source of IRS-approved gold and silver products. Inc. Magazine named them the #1 gold company in their review of 5,000 businesses for 2021. When you call their customer service line, one of their specialists will help you set up your account, roll over your 401k or IRA funds, and advise you on investing in precious metals.
To make it easier for their customers, American Hartford partners with three IRS-approved depositories. The depositories they work with are Brinks, Delaware Depository, and International Depository Services Group.
American Hartford Gold offers a free 25-page booklet to help potential customers learn more about investing in precious metals. They also offer a range of educational materials, including up-to-date research on the gold and silver markets. Their dedication to ongoing customer service helps them stand out.
A Few More Low-Risk Investing Options for Seniors
If you're not sure that a self-directed gold IRA is right for you, there are other ways to protect your retirement wealth. Here are a few more ideas to consider.
Buy Gold-Backed Stocks and Funds
If you still want to invest in gold but without the complexity of opening a self-directed IRA, you can concentrate your paper investments on gold-focused companies. There are mutual funds that focus on businesses that discover and mine gold. You can also buy individual stocks in these types of companies. You'll enjoy many of the same benefits that investing in precious metals provides without having to change your retirement plan.
Buy a Ladder of CDs
When you buy a certificate of deposit, you'll choose a lock-up rate or the period during which the CD can't be cashed. Throughout this period, your CD will earn annual interest on your initial deposit. Some CDs pay a rate as high as 2.7% annually. You can buy CDs with a range of different lock-up rates to create a ladder of income. As each CD matures, you can cash it out or reinvest it in a new CD.
Invest in U.S. Savings Bonds
These bonds serve as insurance against inflation by paying both semi-annual interest and variable-based interest that changes or increases with inflation. These investments, which are also called I bonds, will help preserve your initial investment while earning interest over time. As inflation rises, your yield will be higher.
While some types of investments offer lower risks, it's important to note that every investment comes with some degree of risk. Be sure to research every investment in advance to help mitigate those risks. Enough due diligence can help you make smarter investing choices so your retirement wealth will be protected as it grows.