A Gold IRA is an individual retirement account in which some or all of the wealth set aside is in gold or other precious metals. The term Gold Ira is something of a catchall phrase. It does not necessarily mean the resources set aside are in the form of gold. Sometimes the IRA in question can have platinum, silver, or any other type of precious metal. Some people prefer to use this type of IRA because while the value of the dollar may fluctuate wildly, precious metals tend to hold their value or their value is more likely to increase over time.
Why Use A Gold IRA
The currency market is constantly in a state of flux. Uncertainty about whether the value of any particular currency is likely to drop precipitously on any given day is a real concern. Many people that are nearing retirement and want to make sure they will have the money they need to live comfortably in their golden years often opt to keep at least a portion of their retirement savings in precious metals IRAs. A growing number of financial advisors think gold, platinum, and other precious metals are an excellent hedge against inflation and volatility in the currency market over the long term.
Choosing A Financial Institution
Finding the right financial institution in which to establish a Gold IRA is very important. Financial laws require precious metals be held in facilities which provide an adequate level of security. Very specific types of vault and security measures are essential in order for the financial institution to be approved to offer Gold IRAs. Some financial institutions employ third party facilities to actually hold the precious metals used as part of the Gold IRA. However, those third party facilities are subject to very stringent requirements if they are to be considered a satisfactory repository for the precious metals.
Do Your Due Diligence
People considering putting gold in IRA must do their due diligence to ensure their savings will be safe. A reputable financial advisor can recommend several financial institutions which meet or exceed the government and industry security requirements. With security breaches so rampant today, it would be foolhardy for people interested in Gold IRAs to trust anything but the most secure facilities to hold their wealth. Failure to do so will defeat the purpose of investing in a Gold IRA to begin with. Taking the time to do the proper research can prevent heartache and nasty surprises in the long run.
Deciding if or how much of your retirement savings should be held in a Gold IRA is an important decision. It’s one that shouldn’t be undertaken without the help of a financial advisor you can trust.