Are we in the midst of a global financial meltdown… an economic apocalypse? Is the U.S. dollar still a safe haven for your IRA?
The U.S. government is printing money at a record pace and the chance that your hard earned savings will retain its value in 10 to 20 years from now is slim to none. I would compare it to luck, but even with luck… sometimes you can get lucky. The chance of the dollar devaluing is all but inevitable.
We all need to protect our assets, especially those which we are counting on for retirement, with something in-corruptible. Something that cannot be tweaked or manipulated by power-blinded leaders and government.
Here is a good rule of thumb: The more “printed” money that gets circulated, the more diluted its purchasing power becomes. Hence, the widespread dollar devaluation.
Take this for example, today, an ounce of gold costs around $1420.00. Now imagine if an alchemist finds a way to generate an unlimited supply of gold at little or no cost.
What effect do you think this massive overproduction of gold would have on its current value?
Obviously, its value would be forced to plummet. Exactly what’s happening to the purchasing power of the U.S. Dollar as you read this. Now that, according to the Federal Reserve, there are $1.19 trillion U.S. Dollars in circulation… and counting.
With paper money, government can always cause inflation.
As of right now, due to inflation, a 2013 U.S. Dollar, when compared to a 1914 dollar, is only worth about four pennies in today’s economy.
Surviving the Apocalypse with Simple Diversification
The only way to survive the economic collapse is by diversifying your wealth across as many assets as possible, thus making your savings invulnerable.
What is the best asset to diversify with? Precious metals, like gold.
You see, gold cannot be “printed” or over produced. This quality has made it withstand decades of economic crashes. Even when the demand gets high, its supply cannot skyrocket. Thus, keeping its value always in check.
Emerging economic markets like India, China and now Russia have already realized this secret and are loading up on gold like never before. As an American, you can still reach your financial dream of living a peaceful and rich retirement. Moreover, you can still be wealthy amidst hyperinflation, stock market crashes and dollar debasement.
By hedging your investment portfolio with gold. Gold, along with other precious metals, is the only real asset that can survive a severe bear market.
Just like the old saying goes “Never keep all your eggs in one basket”, even though you might have different stocks and bonds, they are still all fiat currencies.
Investing in Gold – The Smart Way
Where real estate prices dribble, stock and bonds takes a plunge down south and where currencies like the dollar remain unpredictable, gold provides security and stability. It is the only asset that is almost guaranteed to net you a positive ROI in a troubled economy.
Now, there are many ways you can invest in gold. Some might choose to go out and buy gold bars and bullion, but perhaps the smartest way to invest in gold is through your Individual Retirement Account, or IRA. A Gold Backed IRA gives you tax benefits that you just can’t receive through other modes of gold investments.
What is a Gold IRA Custodian?
Finding a reliable gold IRA custodian is one of the most crucial steps to making this transformation process a successful one. A gold IRA custodian is usually a bank or brokerage who guides you through the Gold IRA Rollover process as well as securely safeguards your precious metals.
Along with that, a custodian also handles the transactions on the owner’s behalf while keeping track of all the required documentation and paperwork. Not all IRA custodians permit investments in non-traditional assets like precious metals, so it is the responsibility of the client to find an IRS approved custodian that can handle such investments.
Getting a self-directed IRA is the best way to get the power back into your own hands. It will give you the ability to choose the type of assets you want your funds to back. The custodian’s job will be to simply carry out your instructions. They will not profit from your assets, however they will charge you a fee for the services provided.
How Much Gold Should Your Gold IRA Contain?
This is a thought that has crossed the minds of many, but unfortunately there isn’t a one answer that fits all. Some experts feel that 10-20% of one’s retirement assets should be invested in precious metals. Since with a self-directed IRA you get the full control over your investment decisions, you are free to choose how much precious metals you would like to back your assets with.
In cases where you are looking to invest a small amount, it is typically recommended that you stick with the old favorites, gold and silver. On the other hand, if you are planning to make a larger investment, then, along with gold and silver, it will be best to diversify across several different precious metals like platinum and palladium as well.
That being said, for the best advice you need to speak to an expert. They will evaluate your current portfolio, calculate the risks, and advise you specifically as to what’s the best mix of precious metals that is needed to properly diversify your portfolio.