How Much Of Your Retirement Portfolio Should Consist Of Physical Gold?
When an investor decides to start looking into purchasing precious metals for their gold IRA, the common and most frequent question is: how much should I have? Know that this question will help you make a wise decision, because in the end, it’s all about what is right for you.
In today’s market, more and more investors are rolling over their 401k’s into a gold IRA, also referred to as a gold 401k or self-directed precious metals IRA. The volatility paper assets such as stocks, bonds, and mutual funds continue to face during these challenging economic times has diverted tens of thousands 401k accounts into gold IRA’s. The theme from the market has been allocating 10 to 25 percent of your retirement portfolio into physical precious metals, with the largest portion in gold and silver. Again, each individual should conduct due diligence to decide what is right for them.
While economic forces have driven down stocks, bonds, mutual funds, and real estate, gold continues to increase in value. Actually, over the last decade, gold has outperformed most other investments every year, with an average annualized gain of 15 percent. The fun part of starting your precious metals IRA is that several gold bullion coins and bars are permitted in your gold IRA. These range from American Buffalo gold bullion coins to Credit Suisse gold bullion bars. Until 1997 when laws for precious metals IRA’s changed, only American Eagle gold bullion and silver bullion coins were allowed in a gold IRA. This changed with the tax payer relief act of 1997. Most recently, palladium bullion has become permissible in a gold IRA.
With the various options available, and precious metals continuing to outperform most other investments, it is wise to consider having 10 to 25 percent of your retirement portfolio invested in physical precious metals.
Gold and Silver Taxes – Mike Maloney