Putting money into an Individual Retirement Account (IRA) is one way to effectively plan for your golden years. Then again, simply putting money into an IRA account is not an automatically “effective” strategy. An IRA that draws its value from stock investments is going to suffer when the market drops. Although the stock market has shown booms at times, seriously drops have also been common. This is true even when the market is supposedly doing extremely well. Just look at China’s recent foibles.
The Chinese stock market lost upwards of 35% of its value in an extremely short period of time. The market had been over-valued and suffered a massive crash. While such major occurrences are rare, they do happen. A major crash is not all that is required for people’s investments to suffer ill effects. Losing 10% of one’s portfolio could have dire consequences. An IRA that loses a significant amount of its worth is not going to be of much benefit to someone who is relying upon its value.
Gold as a Hedge
This is why the best gold IRA companies are worth looking a bit closer at. Gold’s value has its ups and downs as well, but gold is often in demand when markets and currencies suffer losses. Gold and, to an extent, silver, provide hedges to currency and stock market woes. If the value of traditional stocks goes down, the rising price of gold could help a retiree avoid suffering fiscal losses. After all, this is the very nature of a hedge investment. Now, if the price of gold ends up skyrocketed, the overall value of the portfolio could increase beyond previous expectations.
No one can predict what the value of gold will be in the future. That said, we all do know gold has value and need in every nation on earth. Gold is never going to become “passe” from an intrinsic value perspective. For this reason alone, people planning for retirement should at least think about owning some gold.
The Ease of Investing
Putting gold into an IRA is not all that difficult. Working with the right precious metals IRA company is all you need to do in order to ensure your retirement account is diversified and protected from the market’s unpredictable troubles.