One of the most important financial factors to consider as a young adult is a retirement fund. This is to ensure that you have some money stored away to enjoy in your twilight years. However, with the economic recession taking its toll worldwide this has become something difficult to do. In order to make a retirement fund last, many people can’t rely on stuffing money under the bed anymore and are looking to keeping investments. One of these investments is the gold IRA rollover investment option.
Paper-based IRAs vs. Precious Metal IRAs
In previous years the majority of individuals would take out paper-based IRAs; however, various problems began arising with these and many seniors were required to obtain full-time employment to support themselves due to the risky and volatile investment. While banks and financial organizations promised security with paper-based IRAs, the truth is that the stock market will fluctuate and a recession can deplete retirement funds completely.
In comparison to the paper-based IRAs, one has the option of a precious metal IRA which will also fluctuate in price, but is more stable due to its vehicle. For example, gold as a commodity is far more stable and viable an investment than paper-based IRAs. Furthermore, gold IRA rollovers will increase in value consistently for decades to come. This means that your retirement fund will grow over the coming years allowing you to enjoy your senior age without having to obtain further employment.
Unlike paper-based IRAs, gold IRA rollovers have another advantage in that there are limited quantities and evergreen uses. Paper-based IRAs are unlimited which means more stocks can be created and your individual investments may decrease in value dramatically. Some people have lost all their capital because they invested in niches that were trending at one moment, but then rapidly declined the next.
How to Change Your IRA
IRAs are generally set up by employers, and if you hold this type of IRA then it is more than likely a paper-based format. This paper-based option is the default used by financial firms for employees, but it is simple to move from paper-based to a precious metal investment if you so desire. This change is usually made upon leaving employment, but change can also be made whilst still working by speaking with your employer. It is recommended you discuss with the financial adviser about moving from a paper-based investment to gold ira rollover. He/she will give you the forms to complete and may assist you with the process.
What Metals Can I Use?
The majority of IRAs will limit the precious metals being held as these are the most stable and valuable metals available. The most common investments are silver, platinum and gold; but they must be of high quality. Superior gold must have a 24 karat caliber with an approved refiner hallmark. One exception to this rule is US Gold Eagle coins which hold a 22 karat caliber.
As can be seen, paper-based IRAs can be risky and may lead to a loss of all your investment capital. By changing to gold IRA rollovers you can be sure of beneficial investment return over a longer period allowing you to enjoy your retirement fund.