Dispelling Common Myths About The Gold IRA
Retirement planning isn’t easy for a lot of folks—in fact, the waters can be murky. Roth IRA, Traditional IRA, 401(k)—these terms, even when familiar, can be fraught with a lot of confusion and especially myths. Perhaps the most prominent retirement plan about which there are myths? The Gold IRA.
To make sense of these myths and find out the truth about what a Gold IRA can do for you, let’s dispel some of the most common things you’ll hear:
“Gold Doesn’t Beat The Returns Of The Market”
While this is true—gold doesn’t average the same returns as the stock market—there is a lot of deception around this idea. The truth is that gold isn’t supposed to provide the returns that growing companies on the stock market provide. Gold isn’t even supposed to behave like a stock in the slightest. Expecting it to give you 10% returns year after year is simply the wrong way to think about it.
The right way to think about gold is that it is a commodity with its own intrinsic value. And this value tends to stand to the test of time, which means even when stock markets are down, gold will still hold that value.
Some people say that gold is outdated and has no intrinsic value. If that were true, perhaps you should try to convince a gold seller to give you their gold for free. The truth about gold is that it is an essential backbone to the economy—and has been for thousands of years.
“IRAs Are For Stocks, Funds And Similar Investments”
Says who? Certainly not the US government, which allows investors the leeway to invest in Gold-backed IRAs. You can even do self-directed IRAs in which you invest in real estate. This is a myth, plain and simple, and believing in it forces many people to continue thinking “inside the box.”
You’re certainly free to include investments in the stock market, funds, and bonds as part of an overall quality retirement plan. But to believe you’re automatically limited to those options because “that’s what most people do”? A different story altogether.
“A Gold IRA Won’t Let Me Maximize My Retirement”
If you’re chasing returns, then you have to have a long-term strategy. Even though the stock market produces a high rate of return for investors, that tends to only apply on the long-term scale. Certainly anyone who retired in 2009 saw how dangerous it can be to have all your eggs in one basket.
With a Gold IRA, on the other hand, you can maximize your retirement by including diversification. Diversification of assets is an essential strategy that even many so-called experts forget when they advise people about gold.
Precious metals are one type of asset among many—but they can be a crucial asset that provides a security blanket against economic disaster.
To learn more about how a Gold IRA might make a great addition to your retirement portfolio, or simply to learn more about how it works, visit our Gold IRA guide.