At Accuplan Benefits Services we love talking about how you can diversify your retirement portfolio to create a better retirement portfolio. Most financial planners and retirement specialists would agree that a diversified portfolio is a smart way to go about investing for the long haul. Because we at Accuplan Benefits Services focus on self-directed IRAs let’s talk about how you can go about investing in gold or silver to diversify your retirement portfolio with a self-directed IRA. This is often referred to as a gold backed IRA or gold IRA.
Why would you want to diversify in Gold?
Gold can play a role in diversifying your retirement portfolio. One of the strongest way to diversify is when there is no correlation between assets. The correlation between gold and stocks is almost zero. Because of this it makes gold a great way to diversify because it can protect your returns while reducing volatility. Another great thing about gold is that it can have a decent return. For instance, for the for the past 10 years. From June 5, 2005 until June 8, 2015 the average yearly return is just over 10%. That is a great return on investment over 10 years.
Many times gold has been views as a safe investment especially during times of geopolitical cirsis or political instability. Usually during these times the value of gold rises. Lots of people that invest in gold look at a gold backed IRA as insurance for your retirement portfolio. Insurance against market failure or problems of war.
Typically, gold rises during inflationary periods and as consumer prices increase. While the cost of living goes up, so does the value of gold. This is a great way to help protect your purchasing power. If you feel like inflation is in the near future which is a great possibility then a gold backed IRA is a smart way to protect your investments.
Many of these same principals with gold apply to silver and other precious metals. If you are looking for a gold backed IRA or other precious metals IRA contact us today. We can help you set up an account and invest in the medal of your choice.
Author: Nick Barker