Investors Buy Gold Bars to Help Diversify Retirement Assets

In today’s uncertain economy, investors who are fast approaching retirement are highly concerned that their investment portfolios may or may not last throughout the long term. With life spans that are lasting longer than ever before, savings are being stretched  to the brink – and it is up to the individual investor to ensure that they last indefinitely.

Gone are the days of the company pension that lasted throughout one’s lifetime. Likewise, the stability of Social Security is equally uncertain. With all of this in mind, investors must do all that they possibly can to make sure that their long term funds are placed in the best possible growth vehicles, while at the same time being protected from any potential current or future market downturns.

Diversifying Long Term Assets Using Precious Metals

Until recently, many investors felt secure in that their portfolios were diversified by picking a nice mix of different stocks or mutual funds. Today, however, that technique is not considered to be a strong enough method to provide the diversification that is truly needed by most investors.

The old “buy and hold” equities strategy is now being replaced with more of a diversified technique – one that includes gold and other precious metals into the investor’s overall asset mix.

Why consider gold? There are several good reasons. First, gold is considered to be one of the most negatively correlated assets to stocks. This means that when the price of stocks goes down, the price of gold goes up. Therefore, this asset can serve many investors well in a bear market – or even in a turbulent stock market environment.

Gold is also seen as an excellent hedge against inflation. In this regard, gold is primarily purchased and sold in U.S. dollars. Therefore, a decline in the value of the dollar can cause the price of gold to go up – and vice versa. Even better, though, the price of gold typically rises when the cost of living goes up. So, when an investor places gold into his or her portfolio, it can help in keeping pace with the rising cost of goods and services over time. For a retiree, this can be highly beneficial.

Incorporating Metals Into a Self Directed IRA Account

When purchasing metals in a retirement account, it is important to note that they must be placed inside of a self directed IRA account. Unlike a regular traditional or Roth IRA, a self directed IRA account will provide an investor with a great deal more control over what types of assets go into the account.

Because of this, these types of IRAs allow the opportunity for much more diversification – which can essentially help investors to both grow and protect assets, while also obtaining tax benefits through deduction, deferral of gains, or both.

Where to Buy Gold Bars, Coins, and Bullion for Investment

While in the past investors would be required to visit a brick and mortar establishment in order to purchase gold bars and other tangible metals assets, today there is a large – and growing – number of precious metals dealers that can be found online. Many of these metals dealers offer a variety of different metals that may be purchased directly via the company’s website, or by contacting the firm via toll-free phone line.

In addition, many of these metals dealers also offer precious metals IRA accounts – and in so doing, provide the paperwork that is necessary to begin the account opening process directly from the company’s website. This can make the process fast, easy, and convenient for investors.

Typically, customer service representatives are available if investors have questions or concerns about an IRA account, the account funding procedures, or which type of metals would be best for purchase based on specific financial goals.

How to Choose the Best Precious Metals IRA Company

When choosing the best precious metals IRA company, there are several factors that investors should consider. First, it is important to check the company’s rating with independent rating agencies such as the Better Business Bureau, TrustLink, and the Business Consumer Alliance.

These agencies will provide either a letter grade or a per-star ranking that is typically based either on customer reviews, number of complaints filed, or certain other factors. It is always good to read over the ratings, as well as the reasons for the reviews.

If a company has received a large number of complaints, it is a good idea to read over the reasons for such complaints. Normally, these are categorized into various segments such as advertising, shipping, or products and services. This can give investors a better idea of where a company’s strengths and weaknesses may lie.

Another important criteria is customer service. Because precious metals IRAs are not a common topic, most investors will have questions about how these types of accounts work and how to go about opening and funding such an account. With this in mind, it is essential that a precious metals dealer have knowledgeable, informative, and helpful customer service reps who will help investors through the process of opening, funding, and investing in their IRA accounts.

Product selection is also a big factor to consider. This is important because when dealing with self directed IRA accounts, the IRS (Internal Revenue Service) mandates that there are only certain types of metals that are allowed to be placed inside of such accounts. So, it is important that the precious metals dealer that is chosen carries at least some of the IRS allowable metals.

The Bottom Line

Today, investors cannot afford to make mistakes with their investment funds. Many have already lived through the recession of 2008 and 2009 – and they want to hold on to the assets they have left throughout their retirement years.

By buying gold bars, coins, and other types of precious metals and placing them into a self directed retirement account, investors can obtain all the benefits of metals investing, while at the same time also benefitting from all of the many tax advantages that IRA investing has to offer.

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