ADVANTAGES OF GOLD IRA OVER NORMAL IRA
IRA which is short form for Individual Retirement Account is a method of retirement plan for an individual provided by many financial institutions that make provision for tax returns for retirement savings in the United States. It is an account set up at a financial institution that helps a person save for retirement with a tax-free growth.
- TYPES OF IRA
- Traditional IRA
Contributions made in a traditional IRA are usually tax-deductible, and they are only subject to income taxes when you want to withdraw. The good thing about the traditional IRA is you have the ability to save on your taxes by postponing them until retirement.
This is an individual savings account whereby taxes are not deducted from your contributions. Even though you are not paying taxes on it while depositing, you still won’t pay any taxes when you are ready to withdraw.
Simplified Employee Pension Plan (SEP) IRA
This is specially designed for individuals who are self-employed. It gives them the opportunity to save while helping to reduce the amount they have to pay on tax.
Simple IRA: the simple IRA also known as Savings Incentive Match Plan helps small businesses contribute to their employees’ retirement while also putting into plan their own retirement.
THE GOLD IRA
Usually, these contributions are done with money, but there is another option available which is the gold IRA. A gold IRA account is an individual retirement account whereby gold or other valuable metals are kept in custody for the profit of the account owner.
It allows you to own precious metals like Gold, silver, palladium.in place of the normal paper cash, we are used to. The custodians are usually banks, trust companies, credit unions, etc. These places have to be approved by the federal or state agencies before they can be qualified to be a custodian of your gold IRA.
Investing with Gold has its numerous advantages. Here is a few of its advantages.
It has the potential to grow. Weakness in stock and paper investments usually increase the demand for gold and silver.
- It has the edge over Inflation: No matter how much the paper currency inflates or becomes useless the metals stand firm.
- It is undeniably stable. The dollar keeps rising and falling but this doesn’t happen with gold.
- It helps preserve your wealth. There is no better way to preserve those riches than in gold.
- Long before the paper currencies, Gold has been in the business of exchange. It is a reasonable way to invest your wealth.