How Safe Is Your IRA Posted by James Randolph on May 11, 2010
May 11, 2010 – How safe is your IRA? Is it well-protected from the onslaught of inflation? Will there be enough left of your IRA when you retire?
Remember the debacles of 2008 and 2009? IRA funds lost 25% of their value in 2008 and 35% in 2009. Inflation had bled IRA funds of over $3 trillion. Don’t let this happen to your IRA. Losses of this kind can easily be avoided by simply diversifying the areas of investment to include those which are invulnerable to inflation. IRA funds are traditionally invested in stocks, bonds and equities, among others. These are excellent mediums of investment when the economy is healthy. But when the health of the economy is in peril, these investments are among the first to get infected.
The Taxpayers Relief Act passed in 1997 allows certain types of investments for the IRA. Among these is gold, most preferred because of its safe-haven status during bad economic times. Gold is the kind of investment you can rely on when other types of investments in your IRA are in peril. In 2008 and 2009 when IRA funds lost their value 25% and 35% respectively, the price of gold correspondingly increased 300% and 400%. The price of gold started at about $270 an ounce in 2000, steadily rose to $865 in 2008 and $1104.00 in 2009. Funds invested in gold not only protect the IRA but also earn profit for the IRA. The TRA also guarantees tax benefits to gold investments.
Gold allowed as investment in your IRA include certain variants of bullion bars and gold coins Gold bars must have a purity of at least 0.995%. Gold coins must be legal tender with a purity of 0.999%. Only the American Gold Eagle that has a purity of 0.9167% is exempted from this requirement. Numismatic gold items and gold coins with numismatic premiums are not allowed.
Know more about keeping your IRA safe. Get in touch with Certified Gold Exchange (CGE), 1-800-300-0715. One of its experts in gold IRA will be glad to help you. CGE is the largest gold exchange in America. It has a spotless No-Complaint record since its founding in 1992. It has an A+ rating, the highest given by the Better Business Bureau. CGE can help you make your IRA safe.
Senior Staff Writer – Certified Gold Exchange