Posts Tagged ‘gold ira’

Responsible Investing While the Economy is Booming

Wednesday, June 6th, 2018

Timing the market is usually a pretty bad idea. The market continues to hit new highs, which usually leads to even more money heading toward stocks. No one knows when the next bear market will start, nor do they know when it will hit its bottom. This means that it’s a pretty good idea to diversify across several different asset classes to minimize the pain that the inevitability of the next recession will bring to many. Here are some assets that are good ideas as the current bull market starts to get a bit long in the tooth.

Stocks

Getting rid of all stocks is not a good idea, because the bull market could continue to run. Additionally, not all sectors will necessarily get hit during a bear market. Consumer staples, for example, tend to do better than other sectors in down markets. People still need to buy toilet paper and bleach. While it’s not a good idea to exit stocks altogether, it is probably a good idea to take some profits and look into other asset classes to mitigate the possibility of a crash.

Cash

Stashing all excess cash under a mattress or in a low-interest savings account is not really a good idea. Inflation will make this cash worthless in terms of buying power over time. This does not mean, however, that you should have no cash on hand. When the next recession hits, it’s likely that many people will lose their jobs. An emergency fund can provide a buffer between jobs. For those who do not lose their jobs, the cash could buy stocks at fire-sale prices. This cash can be held in a higher-interest savings account or a certificate of deposit to at least earn a little bit of interest in the interim.

Bonds

Government bonds do not pay much in the way of interest at this point, but they are considered stable investments. Also, they pay out the interest that can provide a bit of income on a monthly basis. This interest can help offset some lost income that might be a consequence of the next recession.

Gold and Precious Metals

While gold might not be a productive asset like the stock of a company or a plot of farmland, it does tend to preserve capital in down markets. In fact, as people start to panic and sell off stocks at any price they can get, precious metals can actually appreciate. This has been the case in the last two major recessions. Those invested in gold did much better than those in stocks.

Real Estate

The value of real estate can fluctuate pretty extensively during an economic cycle. However, this does not mean that real estate is not worth holding as an investment. As long as real estate remains occupied, it can provide a nice cash flow. Sometimes this cash flow can return as much as 8 to 10 percent of the initial investment on an annualized basis.

As the market melts up, it is probably not a good idea to hold 100 percent of a portfolio in stocks. There are other asset classes that should provide a bit of cover when the inevitability of the next recession becomes a reality. The time for investors to prepare for this decline in stock prices is now. It’s possible to take some profits and diversify to preserve more capital over the long run.

How a Gold IRA can Help you Diversify your Retirement Account

Tuesday, May 1st, 2018

We love talking about how a self-directed IRA can benefit your retirement. Most investment professionals suggest that a diversified portfolio (like a gold IRA) is the smartest way to go and that is exactly what a self-directed IRA does. It gives you a more diversified portfolio because you can invest in other things outside of the regular stocks and bonds. These non-traditional investments can be in things like real estate, gold or more.

If you have wondered why investing in gold or silver may be a great option for you, check out our video below. We talk about a gold IRA, also known as a self-directed IRA that is invested in gold.

When storing your gold in this vault you will be charged a small minimal fee. The monthly storage fees are below.

Monthly Storage Fees:

The asset value of metals: gold only, silver only, both metals
Less than $25,000: $8, $10, $10
More than $25,000: $12, $18, $18

It’s important to remember that one of the great reasons for having some of your retirement assets in gold is that it’s a great way to diversify your portfolio. The other great thing is that gold is looked at as being a standard of value across the globe. It is highly unlikely that gold will ever be worth nothing. If it happened to be worth nothing one day then you still have the saving grace that you will own the actual gold. If the stocks you own ever become worth nothing what do you have to show for it?

These are just a few reasons why a gold IRA could be a great option for you to invest in with your retirement account.

If you would like to know more about a gold IRA or how to set one up then contact us today.

Four Questions and Answers: Precious Metals IRA

Monday, January 22nd, 2018

Investing in a precious metals IRA can seem quite opaque at times. Moreso than investing in an asset more common like real estate, simply because it’s quite a rare investment type. Understanding how a precious metals IRA works, the rules, and what to avoid is essential for every successful investor.

Can I buy and store the metal myself?

Unfortunately no. In order for the IRA to be qualified by the IRS, it must be held by the custodian. The custodian will have a handful of metal dealers that they work with, that store the metals accordingly, have low storage fees, and are full IRS compliant.

What metals are allowed?

Within gold, silver, platinum, and palladium, there are several types of metals that are allowed. Popular bars or proof coins include American Eagle, Australian Kangaroo or Nugget, Austrian Philharmonic, Canadian Maple Leaf, Credit Suisse – Pamp Suisse Bars 0.999 fineness, U.S. Buffalo Gold Uncirculated coins with no proof, plus more. These selections change depending on the metal type you choose.

What fees am I likely to incur?

Accuplan Benefits Services strives to help our customers keep as much of their retirement funds as possible, so we keep our fees appropriately low. See the graphs below for more information on our fee structure for precious metals IRAs.

 

How does adding precious metals to my IRA benefit me?

There are a handful of reasons that precious metals are beneficial in a retirement account. To highlight a few, diversification, liquidity, preservation of wealth, and hedging against inflation. Precious metals have a value that is tangible, that you can touch and hold, so in that regard, it offers peace of mind in that you can see your investment. Unlike paper assets like stocks and bonds, gold traditionally performs well even when the economy is trending downward. It holds its value despite threats of inflation, rising national debt, and market instability or crashes.

 

What Alternative Investment Asset Types are for you?

Monday, September 4th, 2017

When most people think of investing, they might think of the stock market. Some people may even think of stocks AND bonds. All in all, most think of something that’s inaccessible to them, and that only the professionals can dabble in.

Owning an alternative investment can be a way to diversify a portfolio because they are non-correlated assets to most other assets. These types of assets are also commonly invested using a self-directed IRA. Let’s go over a handful of our favorites.

Real estate

The range of types of real estate you can invest in is wide. Most will automatically think of either single family homes or commercial real estate, but it goes beyond that. To name a couple, raw land, apartment complexes, farmland, storefronts, storage units, and many, many more.

Private placements

Simply put, a private placement is an offering of a company’s securities that is not registered with the SEC (Securities and Exchange Commission), and is not offered publicly for purchase. Only a few select individuals are offered private placements, so they’re difficult to find in that regard.

Precious metals

The reason that gold, silver, platinum, and palladium are considered precious metals is because they’re rare. Their value is intrinsically tied to their rarity, and in turn, is tied to how they’re priced.  Investors hold precious metals as an alternative investment and to, ideally, hedge against inflation and financial turmoil.

How a Gold IRA Improves your Retirement Account

Monday, May 22nd, 2017

Not a whole lot of people know you can invest in gold, nonetheless, invest in gold with a gold IRA. But you can and for some retirement savers, it’s the answer they’ve been waiting for. If you’re the type that likes to invest in commodities or hard assets, then a gold IRA might have what you’re looking for. Here are a few examples of how a precious metal IRA benefits everyday savers like you and me.

Hedging against U.S. dollar

A lot of investors, in times of economic instability, turn to commodities as an investment. The reason for this is that generally, hard assets like gold, oil and natural gas retain their value when the dollar does not.
Usually, gold’s price per ounce rises during inflationary periods, or as consumer prices go up. So as the cost of day-to-day living increase, so in turn does gold’s value. This is how you help protect your purchasing power.

Portfolio diversification

Precious metals historically have a weak correlation to price movements in the financial markets. Especially the stock market, which give you the advantage of avoiding market volatility. Best advice is to get your retirement account solely out of the stock market, with a gold IRA. To place your bets on only one investment type can be dangerous. With foresight and a trusted investment advisor, you can carefully diversify and avoid a potential crisis.

Steadfastness

One of the biggest reasons that investors choose gold and other precious metals is stability. Precious metals get a reputation for being a “doomsday” investment, the type of investments that you make if you’re uncertain of the economic future. There’s a great reason for this. Number one would be that gold has been around for as long as anything else on earth, and it’s still used in our everyday life. Number two might be that there’s a finite amount available, thus making it valuable, just by its existence.