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7 times a gold IRA is worth it

Gold IRAs offer attractive tax advantages in addition to the general benefits of gold investments. /Getty Images

Saving for retirement is one of the biggest financial goals many people have. It's crucial to create a solid nest egg to fall back on when you stop working so you can enjoy your senior years comfortably.

After years of worrisome financial headlines, many investors are seeking reliable ways to grow their retirement savings and keep them safe until they need them. One way of doing this is with a gold IRA, a self-directed retirement account that allows you to invest in gold and other precious metals.

Gold IRAs offer attractive tax advantages in addition to the general benefits of gold investments. While these accounts are just one of many ways to invest in gold, there are several times they're particularly beneficial.

Find out if a gold IRA is right for you with a free information kit.

7 times a gold IRA is worth it

A gold IRA is worth opening in a number of scenarios, including:

When you want to create a secure retirement

A gold IRA can provide you with a stable source of retirement income. While gold may not offer quick returns, it's widely regarded as a safe-haven asset that retains its value over time, despite short-term fluctuations in the market.

This makes gold a great way to achieve any long-term investing goals, but especially retirement (which IRAs are specifically designed for).

When you want to take advantage of tax benefits

IRAs offer unique tax advantages to entice people to put money away for their retirement. And with a few different options to choose from, you can pick the IRA type that best suits your current and future needs.

With a traditional gold IRA, you contribute money tax-free and pay taxes on your withdrawals, which can reduce your tax burden if your retirement income is lower than your current income. 

With a Roth gold IRA, you pay taxes on your contributions and enjoy tax-free withdrawals, which can reduce your tax liability if you expect your income will be higher in retirement.

Or, if you're self-employed or own a small business, you can open a SEP gold IRA, which works like a traditional gold IRA.

Whichever type you choose, a gold IRA can enable you to keep more of your hard-earned money.

When you want to pass your wealth on to your heirs

A gold IRA can be an efficient way to leave a legacy for your loved ones. IRAs typically don't have to go through probate, a lengthy process in which a court analyzes your estate assets and decides how to distribute them.

By opening a gold IRA and designating your heirs as beneficiaries, you can ensure your wealth is transferred smoothly.

When you want to diversify your portfolio

Diversification is the key to success when managing your investments. By dividing your money among different asset classes, you can reduce the risk of losing money if one asset class performs poorly.

Gold has historically had a low correlation with other assets, such as stocks and bonds, making it a great way to balance your portfolio and protect your wealth when these assets falter. Experts recommend keeping about 5% to 10% of your investing dollars in gold for this reason.

Request a free gold investors kit to learn more today.

When the stock market is volatile

The stock market is highly volatile. Stocks are still worth investing in due to their high growth potential, but it's critical to cushion your portfolio with more conservative assets to prevent catastrophic losses. A gold IRA can be a great way to do that while enjoying some money-saving tax perks.

When you want to protect your wealth from inflation

Inflation can erode the value of your investments. During times of high inflation — like we're in now — the dollar's value depreciates as the Federal Reserve raises interest rates to combat inflation. Gold prices, however, remain steady or even increase at these times.

Gold can't be overproduced, as there's a finite supply to be mined. It's also always in demand, with uses as an asset, currency and key element in products like jewelry and electronics. When inflation is high, more investors turn to gold to preserve their purchasing power, pushing demand — and prices — even higher.

In times of economic or geopolitical turbulence

When the news is troubling, gold tends to shine. Whether that news is economic instability, political tensions or natural disasters, gold's steady value helps to weather these storms. That's why central banks worldwide hold gold reserves to mitigate risk and maintain stability in times of national and global uncertainty.

Between now and the day you retire, chances are we'll see one or more periods of this sort of uncertainty. By putting some of your money in a gold IRA, you can shield it from these periods.

The bottom line

Investing in a gold IRA can be a smart move for many reasons. From tax benefits to protection from economic turmoil, a gold IRA can provide both protection and growth potential for your retirement portfolio. 

However, before opening a gold IRA, it's important to know what to look for and avoid making some common mistakes. By doing your research and speaking with a financial advisor, you can make the most of a gold IRA to achieve your retirement goals.

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