If you surveyed retirement professionals about how much gold their clients should have when they retire, you're likely to get a wide range of answers. Most will probably say that between 5% and 20% of their portfolio. How much money you need to retire comfortably depends on many factors. According to the Employee Benefits Research Institute, nearly half of Americans haven't even tried to figure out how much money they need to retire, presumably because they don't want to know the number in question.
Many experts say you can save 15 to 20 percent of your annual income each year, but that's not always possible. If you decide to invest in a precious metals IRA, you should do so conservatively. Based on your financial situation, most experts recommend that you invest no more than 5% to 10% of your retirement funds in precious metals. Many investors believe that gold is a safe long-term investment that can be used to hedge against risk.
But should you include this precious metal in your retirement portfolio? Gold can be a highly volatile asset, with an unpredictable price that rarely correlates with stable growth. And this makes it a poor choice for the type of reliable, long-term investment that retirement demands. Here's what you need to know. If you are one of the many on this ship, contributing to a golden IRA in those years could be a smart place to grow and protect your money.
A gold IRA is a type of self-directed individual retirement account used to hold gold, silver, and other precious metals. Gold IRAs are one of many low-risk ways you can invest as a senior, as they offer an opportunity to protect and increase your profits. If you are still convinced that gold is for you, you can invest in funds that own it, although many fans of gold, often called gold bugs, prefer to buy the physical metal, even though this may mean additional storage and insurance costs. If you're a senior looking to open a new golden IRA, it's important to compare your options.
To open a self-directed gold IRA, you will first need an account custodian, a company or an IRA-approved bank, to manage these accounts and handle all the paperwork. If you're looking to invest your funds safely and at low risk, gold IRAs can be a great way to do so.