Top 3 Tips for IRA Investors
When Social Security was first established in 1935, the life expectancy for the average American was about 61. Since then, it has grown to about 78—and your likelihood of living to 81 or 83 increases once you reach 65. Many people often underestimate how long they’ll actually live, making it even more important to be well-prepared for retirement. One of the most trusted ways to do so is with an IRA—but all too often, people overweight their retirement portfolios in favor of one asset, while ignoring the benefits of another.
So, you ask, what should I look out for when opening an IRA? Although we suggest speaking with your CPA or tax advisor first, we outline our top three tips to consider when preparing for retirement with an IRA below…
1. Diversity, Diversity, Diversity
Perhaps one of the most important things to consider when opening an IRA is which assets to include. Due to the volatility of the equities markets, it’s important to balance out your IRA portfolio with stable assets like gold. Whereas stocks can be a worthwhile investment if you have several years until retirement and are willing (and able) to take a risk on your investment, gold has proven to maintain its purchasing power during times of economic instability.
So, while it may be tempting to rake in the big bucks with stocks, be sure to hedge your portfolio with precious metals like gold. You may even be surprised. In fact, if you diversified your portfolio and invested $50,000 in the S&P 500 and $50,000 in gold in 2000, your portfolio would be worth approximately $295,271 today! On the contrary, if you invested $100,000 entirely in the S&P 500 in 2000, your portfolio would now be worth $138,300. This isn’t to say that gold will behave similarly in the next 18 years, as past performance is no guarantee of the future. But it does give insight into the benefit of diversifying your portfolio with investments that are not highly correlated.
2. Choose a Self-Directed IRA for Greater Freedom and Flexibility
Self-directed IRAs are one of the most popular ways to prepare your retirement portfolio and can be either a traditional or Roth IRA. Unlike other retirement vehicles, such as many employer-sponsored programs, a self-directed IRA allows you to diversify your portfolio beyond stocks and bonds to include assets such as precious metals; real estate; energy, oil, and gas; and so on. This is great if you want to profit from stocks but are looking for the stability of gold.
Furthermore, whereas other retirement programs are determined by your employer or fund manager and cannot be expanded, self-directed IRAs allow you to choose exactly what you want to allocate to your portfolio!
3. Rollover or Transfer Funds from an Existing Retirement Account
Instead of starting over entirely, it’s possible for investors with existing IRAs or other retirement accounts, such as 401(k)s or 403(b)s, to transfer or rollover those funds to a precious metals IRA. Although “rollover” is often used to describe both rollovers and transfers, there are key differences between both processes. A rollover is when you move funds/assets from a qualified plan to an IRA. A transfer is when you move funds/assets from one IRA to another.
The good news is you don't need to be an expert on the procedures. We can help. We have been assisting clients just like you with precious metals IRAs since they were first authorized in 1986. Let us help.
Balance Out Your Retirement Portfolio with Precious Metals
To avoid the unnecessary risk associated with putting “all of your eggs in one basket,” experts urge IRA investors to add diversity to their portfolios. When you open a precious metals IRA either on its own or in conjunction with another retirement account, you not only add diversity to your portfolio, but also the stability found only with precious metals. A self-directed precious metals IRA can be easily converted from existing retirement accounts and takes just four simple steps to get started:
- Open an Account: Speak with an ASI IRA Specialist about opening an account by calling 800-831-0007 or emailing us.
- Choose Your Custodian: When opening an IRA through ASI, you can choose from one of six approved custodians to manage your IRA. For help choosing the best IRA Custodian for you, please speak with one of our knowledgeable IRA Specialists.
- Fund Your Account: You can fund your account through a rollover, transfer, and/or direct contribution. ASI can assist you wherever possible with this step.
- Choose Your Metals: Confirm the exact asset and amount you would like to allocate to your IRA.
It’s really that easy to save for the future you want with precious metals!*
*Asset Strategies International is neither a financial advisor nor a tax advisor. Consult your CPA or tax advisor before making any decisions for your retirement portfolio.