Migrating Gold into a Roth IRA

With mounting inflation, Medicare bailouts and Social Security limitations, the horizon is looking less than a secure place to invest and maintain savings for retirement. The national debt continues on the rise while wages lag lethargically behind. There is a growing feeling that the national debt may result in an unmanageable and unstable platform, possibly creating a financial panic. We can blame the continued devaluation of the American dollar (continuing to roll off the printing presses) and speculate that our retirement plans may be crippled because of it. There is a firm belief that to protect our wealth an alternative is needed, and so far that option looks like a Gold Roth IRA. Gold has been popularly viewed as an independent entity in market cycles, a hedge-type life preserver in a questionable economy.

The Jeopardy of Paper Assets

The economy has taken a beating since early 2008 as a result of voluminous mortgage foreclosures and bank failures. With the devaluation of the dollar the paper IRA assets have followed with a morbid regularity. This means Roth and conventional IRAs have taken a downward spiral in value, spurning a need for diversification for investors. At the time the question became “What assets were less risky that didn’t have such problems?” The overwhelming response was gold.

Compared to paper, gold shines as a more trusted and stable commodity that can withstand the downward trends and fluctuations in the market. In fact, gold has been considered a financial haven and savior against inflation. It’s a matter of simple math: paper assets which include cash, bonds and stocks have been on the decline whereas gold has steadily increased in value. It’s a no-brainer. Gold protects the big three: appreciation, safety and diversification, and these are important matters to consider for the average IRA, Roth IRA or 401k. Without a gold-backed IRA, a retirement plan may not have sufficient value to sustain its clients.

Why Gold as the Savior?

Retirement is a time when it’s too late to wonder if the money will be there. Gold has proven to be long term, stable and increasing in value. Adversely, the stock market has been and will be subject to wild and unpredictable fluctuations. Unfair or not, there is a notion that it could suffer a catastrophic crash or a dangerous and continuous downward trend. Let’s face it; the stock market hasn’t exactly exhibited a pristine history of financial gain and stability. Client portfolios have dipped and suffered right along with it. The proof is in the pudding when you consider that a 1-ounce gold coin and a $20 bill held the same value in 1920, but in today’s economy, the current worth of the gold coin could certainly purchase that suit but the paper bill would not. As an example, gold prices reaped a 450 percent increase since 2000 whereas the Dow Jones averaged a gain of 20 percent.

Converting to a Gold Roth IRA

A rollover to a Gold IRA is relatively easy for clients to accomplish. It entails nothing more complicated that adding gold (or other precious metals) to a current IRA plan. Clients have the option of transferring the entire amount or a portion of the amount into a self-directed gold IRA. This is termed a “direct rollover.” There are no tax penalties levied by the IRS for making the transfer. This only requires taking immediate possession of the gold assets or arrange to have them stored in a depository that is IRS-approved. One such depository is the Self Directed IRA Services resource. The process is quick and hassle-free. Today, this option is looking rosier to those who have everything to gain and nothing to lose.