American workers look forward to their retirement for decades. People want to be able to spend those golden years enjoying the fruits of their labor, but they can only do that if they have enough money. Unfortunately, inflation can have a significant impact on how well retirees can afford to live. Here’s how investing in a gold IRA can prevent inflation from ruining retirement.
The Inflation Problem
Some amount of inflation is natural, but it can also be unpredictable. There’s no way to tell how much inflation will go up next year, let alone ten years from now. That’s one of the most compelling reasons to diversify. If none of a retiree’s accounts are protected against inflation, the functional effect is to take money out of their pockets since the cost of living will go up but the amount of cash, they have on hand will stay the same.
How a Gold IRA Can Help
Gold is a tangible asset that won’t lose its value. If the cost-of-living skyrockets, the price of gold will go up alongside it, which makes this precious metal an excellent hedge against inflation. To sweeten the deal even more, the value of gold tends to be inversely correlated with stock market performance. Having a gold IRA can thus be seen as a way not just to hedge against inflation but also to diversify a portfolio to account for potential stock market downturns.
Steps to Invest
Investing in gold is a little more complicated than setting up a traditional retirement account, but investors shouldn’t let that put them off. Just follow these steps to get started:
- Create a self-directed IRA to enable alternative investments.
- Choose a custodian for the account that will hold the gold assets.
- Open an account with a reputable precious metals dealer.
- Purchase gold for the IRA through the custodian from the dealer.
- Keep track of the gold’s value and rebalance the portfolio as needed.
How to Access Funds
As with a traditional IRA, the account holder won’t be able to access the gold until after the age of 59.5 without incurring penalties. Once they reach retirement age, accessing the money held in gold as a physical asset is as simple as asking the custodian to sell the gold for its current market price and withdrawing the money from the account.
The Best Way to Set Up a Gold IRA
The best advice anyone can get when it comes to setting up a gold IRA is to work with an expert in the field. A gold IRA service can offer financial guidance and assistance with setting up the account so that the investor can make the most of their retirement resources.
The process of setting up a gold IRA can be complicated for those who don’t have experience. Working with a specialist removes barriers and helps to ensure that all of the paperwork gets completed correctly to prevent delays. Get started by reaching out to a reputable company today.