Investors, are you looking for the Best 5 Gold IRA Companies on the market? Look no further than The Plugs review that was recently posted as it provides an in-depth overview of five companies that you can purchase precious metals from in your self-directed IRA or with CASH.
I’m turning 50 and starting to think about my investments and conserving my money for retirement. I’m not looking to lose any more principal before I retire. The difficulty today with the stock market, S&P 500, individual companies, and mutual funds is the market is not stable. In 2022, we are dealing with a recession, and inflation and I’m dealing with indecision because the investment is not showing immediate promise. I’m not looking for overnight 30% returns. I’m just looking to stabilize my portfolio so the next recession doesn’t knock me out.
Diversifying my portfolio means taking some of my stock out of my retirement accounts and placing the money in alternative investments. I have a 401K from a previous employer that I am thinking about converting into a self-directed IRA. In this IRA, I’m able to purchase assets and reap any reward of appreciation till I retire, and then I can take my money at a lower tax rate. With the Gold IRA, I can transfer all or part of my 401K and then hold money as cash. Having the money in a liquid form, I can make gold purchases over time without liquidating investments. Also, with a self-directed IRA, I’m able to purchase assets including real estate investment properties, and racehorses, and I can even invest in business directly with my retirement funds. There are so many options with a self-directed IRA gold is just one that I believe I can buy, hold, and wait without much concern over the specific actions of individuals, businesses, or my own doing.
The question I have been thinking about is do I Strike Gold with my investments. Meaning, do I place some of my retirement now in Gold as a more stable investment with some upside appreciation opportunity, or do I choose another investment option? I do know I can make interest on my cash in a self-directed IRA, I can hold cash for investments, and I can even lend my money to other investors. Gold though is a shiny object. I like the look, the feel, and even the prestige of owning physical gold.
My research shows that if I were to have used physical gold as an investment option starting in 1996 when I was first married, I would have bought gold at $387.73 per ounce. In 2008, my investment would have more than doubled when the stock market crashed and we as a nation went into recession. The price in 2008 was $872.37 per ounce and when all my other mutual funds and stocks were tanking, if I owned gold, I know now, that the value would not have declined and it was steadily appreciating. Today in 2022, the price for an ounce of gold is $1,764.92, and what a return I would have had if I were to have started investing in 1996.
From 1996 till today my investment would have increased by over 355% in 26 years. Now I might have a degree in finance, but what I know more than anything is any increase in value over 10% per year for any investment is a great investment.
Hindsight is a good way to look at the past and say “shoot I should have done that”. I don’t have a crystal ball, so my dilemma today is will Gold increase another 300% over the next 25 years, will it stay around $1700-$1800 per ounce, or will the value of the dollar increase and the value of gold go down?
Let’s consider all three potential scenarios;
If the price of Gold increases 300% over the next 25 years and I don’t invest today or over time, I will have missed out again on the value of Gold appreciating. In 25 years, if I’m still alive, I’ll be 75 and if I’m in good health I may have another 10-15 years. If I know one thing so far in my life, nothing goes back to what I would call normal prices. Gas prices haven’t decreased, the cost to deliver mail hasn’t decreased, the fees for investments haven’t decreased, the stock market isn’t lower than when I was 18, and the price of food and entertainment hasn’t decreased. Going on that thought, then the price of gold will not decrease.
If the price of Gold stays between $1700-$2000 per ounce. In this scenario, I would not lose my principal investment. No, I wouldn’t get any appreciation in value but not losing principal is my concern. When stock markets crash, we find ourselves losing the appreciation, the problem is we need to look at prices declining so much that we lose the initial investment. Buying over time, dollar-cost-averaging is key to fluctuating price points. So if the price never changes over 25 years, I would be in the same position then as I am now with owning gold at a good price.
If the price of Gold decreases, now what? Well, I’d still own physical gold. I would still have the option to hold or sell. And as a savvy investor, I would most likely be buying gold over the 25 years and not in one lump sum. This would indicate I would be holding gold at a lower average price and that gives me more opportunity to have positive gains in the future.
Talking things out I believe I have come to the sensible decision to invest in Gold through my New Gold IRA with Augusta Precious Metals. Thanks to The Plug for referring me to this company. They are true believers in customer service and provided me with the information necessary to make a sound investment decision. I have also decided not to invest my full rollover in Gold. I’m diversifying my portfolio with 10% gold immediately and will, over the next 3 years, increase my holdings to 20% of my portfolio. Going forward as my investment portfolio increases I expect my Gold holdings will stay in the 18-22% range. That number is significant to me as it is what I would need to live off of for 5 years. Assuming that my other investments tank, I could liquidate my physical gold and take distributions every 6 months and still have principal and some appreciation of the asset.
Making decisions takes investigation, so I went with The Plug’s #1 suggestion. I believe every person has an opportunity to invest in Gold through their IRA. Now, you might be better than me. I am not good at holding cash, so having an asset that can appreciate like gold allows me to be more comfortable with my future.