As the world grapples with uncertainty, investors seek refuge in haven investments like never before. Times of economic instability has long spurred a shift to conservative asset classes as savers seek shelter from risk and volatility. So it’s no surprise that we’re observing this familiar trend resurfacing at an unprecedented rate.
As inflation and stock markets become increasingly volatile, many savvy investors are taking action to safeguard their retirement funds. One reliable option that has begun gaining traction once more is the timeless asset: gold.
With its consistent stability against loss, inflation, and currency devaluation, gold has long been a reliable asset for investors. In fact, throughout times of crisis after crisis, it has held strong while other investments falter.
Yet only some people know that investing in gold can be an effortless process – even if you understand the many benefits of this type of investment, taking action may appear intimidating at first glance.
Investing in gold is a surefire way to secure your retirement savings, and this guide provides everything you need to get started. With these tips on purchasing gold for long-term security, you can rest assured that your money will be there when the time comes!
Why Invest in Gold
Investing in gold can be a smart decision for protecting and growing your wealth. If you have yet to witness the benefits of owning gold, let us explain why this precious metal should become part of your investment portfolio.
Diversify Your Portfolio
By investing in gold, it is possible to diversify your overall portfolio. Many investors mistakenly believe they have created a well-diversified investment plan by purchasing various stocks and bonds.
However, when there is an economic crisis, as we saw during the 2008 recession, both can significantly lose value. True diversification comes from owning assets across multiple asset classes, such as real estate, agricultural commodities, and precious metals — including gold!
Hedge Against Inflation
Gold has served as a traditional safeguard against inflation, proving to keep up with inflation over the long run. During high-inflation periods, gold can be exceptionally beneficial; its performance is quite spectacular compared.
The US dollar’s value tends to deteriorate due to annual inflation, yet gold remains stable. Gold may be just what you need if you’re looking to safeguard your wealth amid high or increasing inflation.
During the 1970s, for example, when inflation soared to 11% and stock markets were essentially stagnant over that decade, gold still managed an impressive average annualized growth rate of more than 30%. It could offer the same level of stability in today’s ever-changing economy.
Protect Against Market Crash
Gold has a strong track record of outperforming when other markets fail and is also often referred to as an anti-cyclical asset. After the 2008 financial crisis, stocks struggled while gold tripled in value – and many investors took notice.
As a result, they vowed that if another market crash were on its way, they would be sure to invest in gold before any other asset class this time. Is now the right moment?
Grow Your Assets
Not just in times of financial downturns, gold can serve as a good investment vehicle. In the long run, it has frequently outperformed stock exchanges like the S&P 500 and Dow Jones Industrial Average with an annualized rate of 7.84% growth since 1971!
That’s 0.06% more than what you’d get from the S&P 500 and .36% greater than that from DJIA – quite impressive figures to say the least! Gold has consistently outperformed the S&P 500 and Dow Jones since 2001, with an average annual growth rate of 9.80%.
As stock markets seem weak and possibly about to undergo a big correction, gold’s performance could be even more noteworthy shortly – this is why increasing numbers of investors are selecting gold as their investment vehicle!
How to Invest in Gold
Are you considering investing in gold? There are two key methods available to do so. Firstly, consider a Gold IRA, an individual retirement account holding various physical gold coins and bars.
Secondly, buy the items online or at local coin shops, and store them safely in your bank or home vault. It’s that simple! Investing in gold offers many advantages – make sure you take advantage of it today for financial security tomorrow.
What Is a Gold IRA?
A gold IRA provides an incredibly viable way to protect your retirement savings. It offers the same tax advantages that come with a Traditional or Roth IRA and allows you to invest in physical gold coins and bars!
A gold IRA is regularly used by investors wishing to secure the assets they already hold within 401(k), 403(b), TSP, and other similar accounts. It’s also worth noting that this type of account needs adhere strictly to all applicable laws and regulations – just like any other traditional IRA account.
Gold IRA Rules
You must know the rules governing gold IRAs before making your first investment. Although a gold IRA is bound by regulations similar to other IRA accounts, some specific restrictions may be taxing or penalizing if not considered beforehand.
Speak to an experienced tax advisor and financial professional before making investment decisions to protect yourself from unfavorable consequences.
Types of Coins
Regarding gold IRAs, the types of coins you can invest in are limited. Like with any other IRA, though, collectibles cannot be held within a gold IRA – as per IRS regulations concerning what is defined as a collectible item.
Unfortunately, some golden coins, such as St. Gauden’s $20 gold pieces and South African Krugerrands, are not permitted in a gold IRA; if your account were to acquire these collectibles, it could be classified as a distribution which may create taxes and penalties. Luckily, there is no lack of alternative options for you!
According to the US Internal Revenue Code, multiple gold coins meet the criteria for investment in a Gold IRA – including the highly sought-after American Eagle and Canadian Maple Leaf. Impressively, even other mints worldwide have issued gold coins that fulfill these requirements, primarily of Australia’s Saltwater Crocodile.
Contribution Limits
If you’re under 50, the contribution limit for an IRA account is $6,000 in 2022. However, those over age 50 can contribute up to $7,000! Furthermore, investing in a gold IRA does not require an upfront payment.
Instead of paying out-of-pocket for your gold purchase, Gold investments into a Gold IRA can be made via rolling funds from existing 401(k)s and other tax advantages accounts.
Rollovers and Transfers
For those who have worked diligently to build up their retirement savings, a 401(k) or an IRA transfer can be the perfect solution for protecting and diversifying that wealth. Even if you’ve previously opened accounts at former employers, but they’re not making gains, this strategy allows you to roll over these funds into a gold IRA – so your money works harder for you!
No matter the kind of rollover or transfer you wish to execute, most can be done without any taxation. Mynt’s experts specialize in assisting those like yourself with their rollovers and transfers so that your retirement savings can remain safe while also being put towards productive use.
Tax Advantages
Regarding gold, IRAs offer the same tax benefits as any other IRA. If you establish a Traditional Gold IRA account, your investments are made with pre-tax money, and only taxation is applied once distributions occur.
A Roth Gold IRA enables contributions in post-tax dollars so that no taxes need to be paid when taking out funds from this type of account. Alternatively, you can do a Roth conversion by transferring or rolling over assets from an existing pre-tax account into this retirement plan!
Required Minimum Distributions
Regardless of your type of IRA, all Traditional IRAs require minimum distributions once the individual turns 72 years old. Taxes and penalties will incur if withdrawals are taken before 59 and a half years. This rule applies to gold IRAs as well.
Gold IRA Custodian and Depository
When investing in a gold IRA, Mynt has years of experience and works with the most trusted custodians in the precious metals industry. With us, you can be sure that your coins and bars will be stored securely at one of our prestigious depositories with decades of safe storage under their belts. When protecting your valuable assets, you won’t find another partner as reliable or experienced as Mynt!
Buying Gold Coins
If you seek to purchase gold coins beyond the scope of a gold IRA, your choices amplify in coin selection and payment options. Even without accessing potential tax benefits associated with an IRA account, investing in gold remains advantageous as it protects your cash or equivalent assets.
Advantages of Investing in Gold
A gold IRA allows you to diversify your current tax-advantaged investments easily. It provides an invaluable resource that enables you to tailor the perfect portfolio diversification without worrying about hefty pay taxes if any assets are sold within those retirement accounts. Access to this tool is like having another box of tools ready and waiting for whatever job arises.
Adjusting Risk Profile
As you move closer to retirement, your risk tolerance will likely diminish. Your focus shifts from accumulating wealth toward protecting the assets that you already have.
In other words, it’s time to defend and safeguard what has been earned rather than continuing an offensive investment strategy seeking further gains.
Suppose you are aiming to reduce the riskiness of your investment portfolio. In that case, gold is an excellent option – due to its immunity from the unpredictable market surges that stocks can be vulnerable to. As such, gold should play a critical role in your financial plan.
Protecting Tax-Advantaged Retirement Savings
Over the last few years, a surge of 401(k) millionaires has emerged in light of stock market performance.
As these new millionaires wish to stay as such, they may fear potential crashes like that seen in 2008 or worse – leaving them with either two choices: cash out their 401(k), resulting in a hefty tax penalty, or risk riding it out and hoping for a rapid recovery.
However, there are other solutions available! Using a gold IRA, you can safeguard your assets and wealth by transferring them from your 401(k). Gold has long been revered for its ability to protect during financial instability, so this is an ideal way to safeguard yourself and those close to you.
Indeed, even in weak markets, when other investments falter or plummet in value – gold will remain strong, helping preserve one’s hard-earned money.
3 Easy Steps to Start Investing in Gold
Investing in gold can be a challenging task. In three simple steps, you can start investing and begin reaping the rewards:
Step #1. Open an IRA or Sign an Agreement
When you open a gold IRA, your first action is to agree with Mynt. However, if you want to buy physical coins instead, sign the customer contract provided for that purpose.
Step #2. Fund Your Gold IRA or Your Mynt Account
After establishing a Mynt or gold IRA account, the next step is to fund it. For most customers, this will involve transferring funds from an existing retirement plan for which they receive tax privileges.
But speak with your financial advisor first to avoid any inconvenient taxation issues! Alternatively, check payments and bank wires are accepted funding methods if you purchase gold coins directly.
Step #3. Select and Purchase Your Precious Metals
After you have funded your account or gold IRA, it is time to select the coins and bars that suit your preferences. Mynt provides a vast range of choices from numerous international mints; an experienced representative can assist you in finding those perfect additions to your retirement portfolio. With these special investments, ensure they will bring purity and joy to their future owner!
If you’re investing in gold coins for an IRA, your coins will be shipped to the depository of your selection, where they’ll remain safeguarded and secure. However, if you buy directly from a retailer, choose between having them delivered to a storage facility or keeping them at home – whatever best fits your needs.
Is Gold the Right Choice for You?
Whether or not to purchase gold is entirely yours; however, if you’re seeking a haven for your finances in the face of inflation, dollar devaluation, and potential international strife, why not explore investing in gold?
You have put time and energy into creating your retirement fund over many years, so it would be unfortunate to watch it disappear. Gold has traditionally been used as an effective safeguard against economic turbulence – consider adding this valuable commodity to protect what matters most.
In 2008, numerous investors experienced the devastating effects of market losses. You don’t have to be one of them today! Every day your assets remain without protection is another chance for their value to plummet.
Should you experience losses in your retirement savings similar to those seen during the 2008 downturn, it could take years or even decades before you can make up for this financial setback.
Don’t leave yourself at risk any longer – contact Mynt’s experts immediately and learn how gold can shield your wealth from harm!
