Investing has always been a tough subject, where the risk of losing the hard-earned money often suppressed the temptation of enjoying the riches. It is even more difficult for those who are in the autumn of their lives to invest their retirement savings and simultaneously manage the daily expenses, since they will soon be out of a job. But, they must realize that the savings will eventually run out and that there has never been ‘enough’.
Everybody deserves a peaceful retirement and Individual Retirement Accounts (IRAs) are the best investments to ensure just that. Considering that the major global economies such as China, Japan, Eurozone and U.S. are barely managing to stay afloat while the favored asset classes such as stocks, bonds and real estate are being valued at a premium, it only seems wise to insure the savings with ‘worthy’ assets in case the financial system collapses and threatens to wipe out the lifesavings.
A Gold IRA is an option which has proved its efficacy in distress times while all other asset classes have faced the hammer. Like a regular IRA, it allows the holder to buy gold instead of the paper currency. But, what is it that makes a gold IRA the best retirement insurance? It’s because gold has always revalued itself to account for the excess fiat currency in the system (thanks to the Fed’s quantitative easing, there is a surplus of dollars in the system) and hence, protects the investments. The 2008-recession led to significant losses for many investors, but those invested in gold, came out without a scratch. An ounce of gold, which was approximately worth $400 in 2004 is now close to $1400 with the 2020 projections of over $5000 an ounce. Gold IRA-holders can also benefit from the lower-tax rates and easy conversion to cash at any time, leading to more money in the hands and better management of household expenses.
Retirement is indeed a well deserved period of life and one must enter this phase with pride rather than with financial woes. Therefore, it becomes imperative to start investing at the earliest in order to survive the old age with grace.
By: Nikhil Gupta, Financial markets Researcher/Analyst