Friday, May 11, 2012

Why should you choose Gold IRA over traditional IRA?


It is already established that alternative options than traditional IRA accounts are more profitable. People who know about this have already transferred their accounts to other forms. Especially the gold backed accounts are way more profitable than any other accounts because of the value of gold. It does not depend on factors that can change suddenly and therefore is a lot safer than high risk high yield options.


Factors like economic crisis and stock market failure do not affect gold value and make it better than traditional investment options that carry higher risks of losing value in future. There are other benefits of choosing IRA gold like the potential of less tax fees. If done in the correct way, this type of transfer will pay for the cost itself within a really short time. Especially with gold mining stocks, the profits can be substantially higher than regular investment options.

 Those who have done the conversion are enjoying their retirement without any risk and are really happy about it. Traditional IRA has not done much good since the last recession as market factors have not been in favor and therefore, are not returning much profit. Scams and frauds have also made it a high risk option for those who do not have a lot of money in their accounts.

By transferring existing funds to a gold backed plan, one can rest assured that sudden market condition changes will not affect their assets. Most of the economic conditions and factors do not cause the price of gold to drop. As a matter of fact, the gold price actually increases if there is any kind of fluctuation in the stock market.

This happens because investors soon find it less risky to sell their stocks and buy gold to secure their investments. As a result, the increased demand causes the price of gold to increase and the decreased demand causes the stock market to fall sharply. None of this is desirable though but it does happen and will continue to happen. Gold therefore is a safer bet than high risk stocks.

The transfer process is not too complicated and is totally legal. Any traditional IRA account holder can transfer funds to a gold backed account at will. There are experienced consultants who can help with the whole process and the companies that offer management of precious metal accounts are more than happy to provide this consultancy for free. So the costs associated with the process are not going to be a burden for most people. Upon approval and confirmation from the traditional fund manager, the funds can be transferred for buying gold coins and bars.

These have to be kept in a safe and secure place. Companies that offer precious metal services will have an insured depository ready for this purpose. There are some costs for the safekeeping but it is quite negligible when compared to the potential risks of other investment options. The consultant will also help with ways of reducing taxes.

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