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5 reasons beginner investors should open a gold IRA now
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Investing wisely is a crucial component of financial success, but for beginner investors, navigating the complex world of investments can be intimidating. Not only are there numerous assets to choose from — ranging from traditional stocks and bonds to alternative investments like Bitcoin — but each type of asset has its benefits and downsides to consider. That can make it tough to navigate the investing landscape, especially when you’re first starting out.
For example, while stocks can result in big returns on your investment, they also tend to be volatile. So if you’re heavily vested in stocks and the market takes a downturn, you could face significant losses to the value of your portfolio. On the other hand, safer assets, like certificates of deposit (CDs), aren’t subject to major market fluctuations, but there’s a limit to the returns you can earn on them. So, it’s generally best to have a portfolio that includes a mix of assets instead.
As you build out a diversified portfolio as a new investor, one option that may be worth considering is a gold individual retirement account (IRA). Diversifying your retirement portfolio with gold comes with a unique set of benefits — and there are a few compelling reasons why beginner investors, in particular, should consider opening a gold IRA today.
Find out how a gold IRA could be a smart addition to your portfolio.
5 reasons beginner investors should open a gold IRA now
If you’re a beginner investor who’s unsure of whether a gold IRA makes sense for you, here are a few reasons you may want to consider one:
It’s a simple and accessible investment
Opening a gold IRA tends to be a straightforward process, making it an accessible option for beginner investors. Many reputable financial institutions and custodians specialize in facilitating precious metal IRAs, helping to guide investors through the setup and management of their accounts.
And, the gold investments within an IRA are typically backed by physical gold, which is held in secure vaults. This ensures that you’ll have tangible assets supporting your retirement savings. In turn, the simplicity of the gold IRA structure, combined with the ease of access to professional guidance, makes it an attractive option for those new to the world of investing.
Learn about your gold IRA investing options online now.
To hedge against economic uncertainties
Gold has long been recognized as a safe-haven asset and a reliable store of value during times of economic uncertainty. That’s because, unlike traditional currencies, which can be subject to inflation and depreciation, gold has historically retained its value when the economy takes a downturn. And, during economic downturns or geopolitical instability, the demand for gold often rises. This, in turn, causes it to increase in value, offsetting losses from other types of investments.
So while traditional retirement accounts may be vulnerable to market fluctuations, having a portion of your portfolio in gold can provide a stabilizing effect, helping to preserve and potentially grow your wealth over the long term. That can be a big draw for beginner investors, as opening a gold IRA can protect your retirement savings.
To diversify for risk mitigation
Diversification is a fundamental principle of sound investing. By spreading your investments across different asset classes, you can help reduce the overall risk to your portfolio caused by more volatile assets.
And, including gold in your investment mix generally adds an extra layer of diversification, as its value tends to move independently of stocks and bonds, holding its ground or even appreciating during times of market stress. So, by incorporating a gold IRA into your investment strategy as a beginner investor, you may be able to achieve a more balanced and resilient portfolio.
The potential for long-term growth
Gold is not just a defensive asset; it also has the potential for long-term growth. While short-term price fluctuations are normal, the price of gold tends to remain steady — and grow slowly over time — due in large part to its finite supply and the unique benefits it offers to investors.
In turn, gold’s intrinsic value and historical performance offer a compelling case for including it in a retirement portfolio. By opening a gold IRA early in your investment journey, you can position yourself to benefit from the potential growth over the long term.
The retirement account tax advantages
One big — but often overlooked — advantage of opening a gold IRA is its compatibility with the tax benefits provided by traditional retirement accounts. When you hold gold within an IRA, you can enjoy tax advantages similar to those offered by traditional IRAs or 401(k) accounts.
For example, contributions to a gold IRA may be tax-deductible and the investment grows tax-deferred until withdrawals are made during retirement. This tax-efficient structure can enhance the overall returns on your investment, allowing your wealth to compound more effectively over time.
The bottom line
For beginner investors seeking a secure and diverse approach to building wealth, opening a gold IRA can make a lot of sense. After all, there are a lot of unique benefits that come with adding gold to your retirement portfolio, from its ability to act as a hedge against economic uncertainty to the potential for tax advantages and potential long-term growth. By taking this step now, beginners can lay the foundation for a more secure financial future and ensure that they’re protected against the uncertainties of the market.
The following is a transcript of an interview with Sen. Mark Kelly, Democrat of Arizona, on “Face the Nation with Margaret Brennan” that aired on Oct. 6, 2024.
MARGARET BRENNAN: Joining us now is Arizona’s Democratic Senator, Mark Kelly. He’s in Detroit this morning on the campaign trail for the Harris campaign. Good morning to you, Senator.
SEN. MARK KELLY: Good morning, Margaret.
MARGARET BRENNAN: I want to talk to you about Arizona, but let’s start in Michigan, which is where you are right now. And it is going to be such a key state to a potential Harris or Trump victory. Vice President Harris is facing challenges among black men, working class people, as well as the Muslim and Arab populations skeptical of the White House support for Israel’s wars. What are you hearing on the ground there from voters?
SEN. KELLY: Well, my wife, Gabby Giffords, and I have been out here for a couple days. We’ve been campaigning across the country, Michigan, I’ve been in North Carolina, Georgia as well. I’ll be back to Arizona here soon. The vice president was out here speaking to Muslim organizations and the Arab community about what is at stake in this election and addressing the concerns that they have. What we’re hearing, issues about the economy, about gun violence, about, you know, supporting American families and the difference between Donald Trump and Kamala Harris. You know, Kamala Harris, who has a vision for the future of this country, Donald Trump, who just wants to drag us backwards.
MARGARET BRENNAN: Today in Dearborn, Michigan, there’s a funeral service for an American man who was killed in Lebanon by an Israeli airstrike. It just underscores how that community you’re talking about out in Michigan feel some of what’s happening in a personal way to their community. Given how close this race is, do you think this war and the expectation it could escalate could cost Democrats both a seat in the Senate and potentially the presidency?
SEN. KELLY: Margaret, nobody wants to see escalation and it’s tragic when any innocent person, whether it’s an American or Palestinian, lose their life in a conflict. Tomorrow’s one year since October 7th, when Israel was violently attacked. Israel has a right to defend itself, not only from Hamas, but from Hezbollah and from the Iranians. But, you know, I and my wife, you know, we feel for the community here who’s been affected by this. And that’s why the vice president was out here earlier, a few days ago, meeting with that community.
MARGARET BRENNAN: But it’s a live issue.
SEN. KELLY: Yeah, sure. I mean, there is an ongoing conflict in the Middle East. Israel is, you know, fighting a war now on, I think it’s fair to say, two fronts and then being attacked by the Iranians as well. And, they- they need to defend themselves, and we need to support our Israeli ally. At the same time, when women and children lose their life, innocent people in a conflict, it is- it is tragic.
MARGARET BRENNAN: You do sit on the Senate Intelligence Committee and so I know you know how intense the efforts are by foreign actors to try to manipulate voters going into November. Just this Friday, Matthew Olsen, the lead on election threats at the Department of Justice, told CBS the Russians are, quote, highlighting immigration as a wedge issue. That is such a key issue in Arizona. Are you seeing targeted information operations really focusing in on Arizonans right now?
SEN. KELLY: Not only in Arizona, in other battleground states. It’s the Russians, the Chinese, the Iranians, and it’s significant. And we need to do a better job getting the message out to the American people that there is a huge amount of misinformation. If you’re looking at stuff on Twitter, on TikTok, on Facebook, on Instagram, and it’s political in nature, and you may- might think that that person responding to that political article or who made that meme up is an American. It could be- it could look like a U.S. service member. There is a very reasonable chance I would put it in the 20 to 30% range, that the content you are seeing, the comments you are seeing, are coming from one of those three countries: Russia, Iran, China. We had a hearing recently, with the FBI director, the DNI, and the head of the National Security Agency. And we talked about this. And we talked about getting the word out. And it’s up to us, so thank you for asking me the question, because it’s up to us, the people who serve in Congress and the White House to get the information out there, that there is a tremendous amount of misinformation in this election, and it’s not going to stop on November 5th.
MARGARET BRENNAN: Understood. And we will do our best to help parse that for viewers. But on the topic of the border, President Biden did announce just this past week new regulations to keep in place that partial asylum ban that he rolled out back in June. That’s what’s credited with helping to bring down some of the border crossing numbers in recent weeks. It was supposed to be a temporary policy, dependent on how many people were crossing at a time. Do you think this is the right long term policy, or is this just a gimmick to bring down numbers ahead of the election?
SEN. KELLY: Well, the right long term policy is to do this through legislation. And we were a day or two away from doing that, passing strong border security legislation supported by the vice president, negotiated by the vice president, and the president and his Department of Homeland Security, with Democrats and Republicans–
MARGARET BRENNAN: But this is not legislation.
SEN. KELLY: –This is bipartisan. This isn’t. But the legislation was killed by Donald Trump. We were really close to getting it passed. That’s the correct way to do this. When you can’t do that, Margaret, when a former president interrupts the legislative process the way he did, which is the most hypocritical thing I’ve ever seen in my three and a half years in the Senate. After that happened, the only other option is executive actions. And this has gone from what was chaos and a crisis at our southern border to somewhat manageable. And if you’re the border- Border Patrol, you know, this is this- you need this. I mean, otherwise it is unsafe for Border Patrol agents, for CBP officers, for migrants, for communities in southern Arizona. So it’s unfortunate that this was the- these were the steps that had to be taken.
MARGARET BRENNAN: Okay.
SEN. KELLY: But that’s because the former president didn’t allow us to do this through legislation.
MARGARET BRENNAN: Senator, we have to leave it right there. Face the Nation will be right back.
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Sen. Mark Kelly says Americans need to know about “huge amount of misinformation” on election
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