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football predictions excel:Who is a gold IRA best for?

A gold IRA can be a useful way to incorporate gold's unique benefits into your retirement savings. Stefan Wermuth/Bloomberg/Getty Images

Gold's reputation as a hedge against inflation and safe haven through market downturns may be attractive to some investors in today's economic climate. Not to mention the growing price of gold this year, which reached near record highs and has maintained a value just under $2,000.

But if you're thinking about investing in gold today, you'll need to decide what type of gold investment is best for you. For some, the tangibility of buying gold bars and coins directly may be most appealing. Others may prefer the simplicity of gold stocks or funds made up of gold-adjacent companies. 

Another popular option for gold investors today is a gold IRA. These accounts have unique benefits — but it's important to understand the details so you know whether it's best for your financial plan. Start learning more about gold investment options today with a free information kit.

Who is a gold IRA best for?

Gold IRAs may be better suited to some investors over others. Here are some things to consider before you buy in:

Long-term investors

Long-term investors may get the most use out of any type of gold investment — including gold IRAs.

Gold's benefits as a safeguard for your overall investment portfolio can be useful throughout evolving market cycles. If you're only invested for a short time, the broader economic environment could make it difficult to get the full value of your gold investment. Plus, gold prices can experience volatility over short periods, even though it tends to increase in value over the long term, so you're more likely to get the most benefit with a longer timeline.

Find out more about gold investing today with a free investors kit.

Investors with a diversified portfolio

An important thing to decide before investing in gold is how much you want to invest. Gold is typically used as a portfolio diversifier — so you can benefit from a small allocation alongside your investments in assets like stocks and bonds. In fact, experts typically recommend dedicating only 5% to 10% of your portfolio to the precious metal.

If you're investing with a gold IRA, you can use it as a way to diversify the retirement savings you already have. Because you may need to rely on your portfolio for income during retirement, you'll want to make sure that you give your investments a chance to grow over time. While gold can help you weather periods of downturn, it's not as useful for building wealth as more traditional investment may be. 

If you're unsure how to incorporate gold into your retirement plan, consider speaking with a trusted financial advisor who can offer advice on your individual portfolio.

Retirement-focused investors

Because of the retirement benefits of a gold IRA, this investment is best for those who want to buy into the precious metal for retirement. Like any regular IRA, gold IRAs offer tax advantages for retirement. Depending on the type you choose, you can either make pre-tax contributions or contribute to your account after-tax and withdraw from your account tax-free at retirement. 

If you wan to buy into gold but you don't necessarily want to use it for retirement, you may want to consider a different gold investment option better suited to your goals.

More details about gold IRAs

Unlike other ways to buy gold, a gold IRA has some specific requirements you should consider before you open your account. 

For one, you'll need to make sure the gold you buy is IRA-eligible. This includes high-quality gold bullion of a certain weight and purity. This is to differentiate your gold from collectibles, which are not eligible for IRA investing.

You'll also need to think about storage. The IRS does not allow you to keep your own physical gold that you invest in an IRA. Instead, you'll need to set up storage with a bank or IRS-approved nonbank custodian. This can add extra setup or annual fees that you'll want to keep in mind before you buy in.

If you think a gold IRA could be right for you, a gold investment company can be a good resource for setting up your account, buying eligible gold and coordinating with an approved custodian. Learn more about your options with a free investment guide.

The bottom line

Investors who are considering buying into gold today may want to consider the use of a gold IRA. These accounts may benefit long-term, retirement-minded investors who already have diverse portfolios made up of other assets. If you want your gold investment to add some security to your retirement savings, it could be worth considering before you make your gold purchase. Find out more about gold IRAs and other gold investment options with a free information kit today.

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