Although improvement has been seen in the global economy, many investors remain hesitant to invest in the stock market as they worry about another downturn. For this reason, many are looking to find new ways to invest, ones that offer solid returns over a period of time. Gold continues to be a solid investment, one that individuals know they can count on in the short and long run. Why are so many opting to change their 401k to gold IRA? Here are a few of the benefits seen when one chooses to make this move.
Gold allows one to protect their wealth from inflation. When stocks and bonds decrease in value, gold and other precious metals tend to rise. If one adds gold to their investment portfolio, they never have to worry about it losing all value because the intrinsic value of gold ensures this doesn’t happen. Gold continues to be a popular item in many consumer goods, adding to its value, and it may be used as currency if the dollar loses all value, offering consumers another way to pay for needed items.
Opening a gold IRA isn’t difficult. Most precious metals investment firms offer a number of funding methods for this type of account. One may choose to roll funds from an existing account to a gold IRA or transfer an existing account to a gold one, although investors must be aware that a limit has been placed on the number of transfers that can be completed during one calendar year. Another option open to investors is an annual cash contribution although investors are also limited in how much they can contribute on a yearly basis.
Before choosing to open an IRA of this type, one needs to find a precious metals company to work with. How should one go about doing so? Investors need to consider the track record and reputation of any company they are thinking about using and should also look into product offerings. Customer service remains of importance when choosing a company of this type, and investors should look to see if they offer educational materials for those who are experienced and those who are beginners. Finally, one must understand what items may be included in a precious metals IRA. This investment vehicle is wonderful for those who wish to diversify, but care must be taken to follow all rules and regulations.