Are you paying attention to what’s happening to your investments? In February 2020, you likely had the shock of a lifetime. Your heart didn’t stop pounding until the middle of March when the stock market finally calmed down and hit bottom. Since then, it’s seemed like smooth sailing as your investments recovered most of their nasty losses.
You were confident that everything was fine until June 11, 2020. On that gruesome day in history, the Dow Jones Industrial Average dropped nearly 1900 points. And the NASDAQ and S&P 500 came crashing down along with it.
Are we in the middle of another bear market? It seems like it. Is your 401(k) account about to lose 50% of its value? Only time will tell.
If you can’t sleep at night because you’re afraid you’ll lose everything in the next market crash, you must diversify. You have to hedge your bets against a brutal economy and tumbling stock market to protect your bottom line.
Our favorite way to improve retirement investment prospects during a challenging market is to begin investing in gold. If you haven’t noticed, gold is on fire lately.
Very recently, gold prices have done the following:
● Gold has gained $390 in value per ounce over the last year.
● And as real trouble began brewing, the value of gold has captured $254 per ounce in the past six months.
You’d like to sleep at night again, right? It’s bad enough that we have to worry about getting sick with the coronavirus. You shouldn’t have to worry about feeling physically ill because your retirement portfolio falls to pieces. With that said, keep reading to discover the benefits of a gold IRA rollover in 2020 and beyond.
Benefit #1: Penalty Free Funds Transfers
Many investors are afraid to exit their current 401(k) account or traditional IRA because they’re worried they’ll pay massive penalties. It’s possible that things were done this way in the past because financial institutions are always looking to grab more. But in this case, rolling over your current retirement account into a gold IRA won’t cost you a penny.
It’s a simple process and you’ll have little to do with its execution. Simply contact your new custodian and they’ll contact your old custodian to begin the transfer process
If you’re concerned about moving resources from one account to another, there’s nothing to fear. You aren’t going to incur charges of any kind. And it’s your right and privilege to have a self-directed gold IRA account. This puts you in the driver’s seat of controlling your investments. You’ll no longer have to rely on money managers who only
care about earning commissions and nothing more.
In the end, you’ll need to instruct your custodian and provide authorization to initiate the funds transfer process. But that’s about the gist of it and it’s easy to switch because your custodian will perform the heavy lifting.
Benefit #2: Hedge Your Bets against Inflation
You’ve seen the truth since the coronavirus has reared its ugly head. No one wants to talk about it but prices at the grocery store are on the rise. The value of the US dollar isn’t what it used to be. And with your investments in a scary position, you have to do something to protect your portfolio.
Buying gold is a great way to add value to your retirement accounts while prices continue to rise. You’ll need more capital to continue living a good life well into your 70s,
80s, and 90s or more.
Here’s another interesting secret about gold: it has outperformed mutual funds, index funds, and stocks for decades. This natural resource is in big demand right now and supplies are limited. So the value of gold will continue to rise for the foreseeable future.
Even more important, the price of gold and other precious metals tend to move parallel to one another. As inflation rises, so does the value of gold, silver, platinum, and
palladium. These gorgeous precious metals will not only protect your life savings, but they’ll also help to grow it quickly. And this is especially true in this tough economic
environment that we currently find ourselves in.
Benefit #3: The Demand for Gold Is off the Chart
Regular investors like you and me certainly desire gold. But the largest countries in the world continue to gobble it up by the metric ton every year. In fact, gold reserves across the United States, Asia, and Europe are at all-time highs. The biggest and best countries in the world recognize its lasting value and want to possess this precious metal.
As of September 2019, the 10 largest gold reserves by country throughout the world include the following:
- 8134 tonnes in the United States
- 3367 tonnes in Germany
- 2451 tonnes Italy
- 2436 tonnes in France
- 2219 tonnes in Russia
- 1936 tonnes in China
- 1040 tonnes in Switzerland
- 765 tonnes in Japan
- 618 tonnes in India
- 613 tonnes in the Netherlands
Guess what? These world leaders and economic powerhouses continue to buy up more gold every year. In fact, China and Russia have upped their game in recent years and are beginning to stockpile more and more gold. This is partly due to economic tension between the United States and these two countries. And it’s also in part because the value of gold is stupendous and it’s going to get better over time.
Benefit #4: Protect Your Portfolio from a Recession/Economic Downturn
Believe it or not, many investors take the necessary steps to insure their portfolios in case of an economic downturn. The interesting thing is precious metals purchased within a gold IRA rollover account are the ideal form of insurance.
Why? Pay attention to what happened to the stock market from early February 2020 to mid-March 2020. The market was rocked and by February 25, 2020 the S&P 500 lost $1.737 trillion in two days. How sick is that? If you owned index funds or a mutual fund you likely wanted to vomit because of nervousness and fear.
How do you think precious metals investors felt during the same timeframe? If you guessed that they felt good, healthy, and happy, you’re starting to understand what
we’re showing you.
As an example, let’s take a look at gold:
- On February 4, 2020 gold was worth $1554.04 per ounce. The stock market was beginning to feel coronavirus fever at this point.
- On February 24, 2020 gold was worth $1653.80 per ounce. 20 days later and the stock market began to capitulate. Stock investors were losing big bucks every day. Gold investors felt tremendous satisfaction.
- On March 6, 2020 gold was worth $1674.67 per ounce. Just 11 days later and gold had gained another $21 per ounce. The stock market was in serious trouble.
- On May 7, 2020 gold was worth $1714.50. It has skyrocketed another $40 in value over the next two months. The stock market also began to recover in the middle of March. Your gold investments and stock investments both gained value and you really started making a lot of money.
- On June 10, 2020 gold was worth $1735.64. Just a little more than a month later and gold added another $21 in value per ounce. The stock market is beginning to grumble again. The Dow Jones lost more than 1800 points a day later. The S&P 500 and the NASDAQ didn’t do much better percentagewise.
All of this is here to show you that gold thrives during economic turmoil. The same holds true for silver, platinum, and palladium. This is proof positive that you seriously need to consider a gold IRA rollover before the next crash begins. Rumblings are happening right now and your portfolio is at risk. Take the necessary steps to protect your retirement account from a recession by adding a precious metals IRA as insurance.
Benefit #5: Achieve Higher Returns with a Gold IRA Rollover
Finally, it’s important to understand that gold investments tend to provide bigger and better returns over time. But the key here is you must buy and hold your precious metals as you work toward your retirement years. You can buy gold now and make quick returns because the market is hot. But it will simmer down eventually and your returns will become much more stable.
You have to take the long view when it comes to retirement. Since this investment plays out much better over time, you will yield higher returns after a few decades instead of a few years. But the truth is very simple. When you examine the cost-benefit ratio, you’ll see that you’ll maximize returns on your investment in gold compared to stocks, bonds, and mutual funds over time.
At this point in time, you undoubtedly understand the true value and benefits of a gold IRA rollover in 2020. But to recap, please remember the following:
- You’ll achieve higher returns with a gold IRA rollover
- You’ll protect your portfolio from an economic downturn
- You’ll increase the worth of your investments because of the tremendous demand
- You’ll use gold IRA investments to hedge your bets against inflation
- You’ll rollover your current retirement portfolio without fear of incurring fees and penalties
Clearly, a gold IRA rollover is the best way to make lemonade out of our current investment market lemons. Open a gold IRA now and remember to choose one of the
best companies in the industry to get started.