A gold IRA rollover is one of the smartest financial decisions anyone who is saving for retirement can make. A gold IRA is exactly like a regular one. It gives you all of the same advantages, but comes with the added security of knowing that you are diversifying your portfolio in a very advantageous way.
Rolling over your IRA into gold is a fairly simple process. Any good brokerage firm or financial advisor will be able to assist you. Oftentimes your current investment house will already have the systems in place in order to make this transition seamless.
For those of you who are unfamiliar with what a rollover is, let me explain. Let us say that you currently have an IRA account with $15,000 in it. All of this money is currently invested into traditional stocks and mutual funds. Maybe you have $10,000 in stocks and $5,000 in mutual funds. You decide that you want to further increase your diversity and hedge against the market so you initiate a $5,000 rollover from the money that you have invested into stocks into a gold IRA account. This means that you will now own $5,000 in stocks, $5,000 in mutual funds, and $5,000 in actual gold.
The concept behind this really goes back to that old saying “don’t keep all your eggs in one basket.” Mutual funds and stocks are actually fairly similat and will tend to move up and down in sync with the market. Gold on the hand tends to move opposite the market, except that it does not really go down due to its strong support levels. This means that if the market goes down gold will likely move up, but if the market goes down it will largely sit unchanged.
This is what makes gold the perfect hedge device. There is virtually no risk of losing your entire investment when you have money in gold. The only ‘risk’ is the opportunity cost of not having your money invested into a stocks that could have rapid growth. This is why gold should never take up the majority of your portfolio, but should instead be a safety play against negative market movements.
A gold IRA rollover is a financial device that anyone who is seriously saving for retirement should use. It provides all of the benefits of a traditional IRA with the added stability that an asset like gold provides.