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How a gold IRA can provide retirement income

Investing in a gold IRA is a smart way to ensure you have enough money to rely on in retirement.  Getty Images/iStockphoto

The traditional retirement dream is becoming less and less of a reality for many seniors. Rather than traveling or spending time with loved ones, many are returning to work to combat the rising cost of living. A recent Resume Builder report found that one in five retirees plan to "un-retire" to shore up their finances.

You can avoid this fate by building healthy retirement savings you can draw from for income. Social Security alone won't get you very far. As of February 2023, the average Social Security payment was $1,693.88, according to a Social Security Administration report. That's roughly $20,300 per year — enough to survive on if you budget carefully, but not enough to let you rest easy or thoroughly enjoy your retirement.

One way to increase your retirement income is by investing in a gold IRA. An IRA is a retirement account that provides attractive tax benefits. A gold IRA is a type of IRA that enables you to capitalize on the benefits of investing in gold, such as reliable returns and resistance to market fluctuations.

To find out if a gold IRA is right for you, request a free investors kit here.

How a gold IRA can provide retirement income

A gold IRA can provide you with a number of benefits. Here's how it can boost your income in retirement.

It protects your retirement savings from inflation

Inflation can cut into the value of your retirement savings by reducing your purchasing power. Gold has historically outperformed other assets during periods of inflation, making it an attractive option for retirees looking to protect their nest eggs. 

"Gold has been used as a store of value for thousands of years," says Doug Carey, CFA and president and owner of WealthTrace. "Unlike currency, which can be devalued or inflated, gold has a stable value over time. This makes it a good option for long-term investments."

By investing in a gold IRA, you can hedge against inflation and safeguard your retirement savings.

It reduces losses by diversifying your portfolio

When it comes to investing for your retirement, safety and stability are key. You want to get the best return possible on your money, but you don't want to take any big chances that could jeopardize your financial security. One way to reduce risk is by diversifying your investments.

"Diversification is a strategic way of managing your investment portfolio to include various types of investments to reach specific financial goals over the long term," explains gold investment company Goldco. "A well-diversified investment portfolio can offer you the potential for improving returns without subjecting yourself to high-risk investments that are limited in focus." 

A gold IRA can counterbalance losses from more volatile assets, such as stocks, reducing risk in your overall portfolio.

"Gold typically behaves in inverse correlation to the stock market," William Bevins, CFP, CTFA, previously told CBS News. "As a result, when the stock market takes a downturn, gold often increases in value. Investing in gold can be a great way to give your portfolio stability and diversity, offering some measure of protection against potential market events."

It offers tax advantages that stretch your money further

There are many ways to invest in gold. Gold IRAs in particular can help you keep more of your money thanks to the unique tax benefits they offer.

Depending on the type of gold IRA you choose, your money is taxed either when you contribute it or when you withdraw it. Whenever it's taxed, it's taxed at your then-current income tax rate. So, by considering how much you earn now and how much you expect to earn in retirement, you can minimize how much taxes you owe, giving you more to work with when you retire.

Explore your gold IRA options by requesting a free information kit today.

The bottom line

Investing in a gold IRA is a smart way to ensure you have enough money to rely on after you stop working. Gold IRAs can provide a steady, reliable stream of income that's protected against market volatility. In addition, they offer tax benefits that can help you stretch your retirement savings further.  If you're looking for a way to diversify your retirement portfolio, a gold IRA is a great option. 

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