Investments were once mainly between two types: stocks and bonds. While both can be useful additions to a portfolio, both have weaknesses, particularly in volatile financial environments where inflation and financial risk are high. Fortunately, there are more investment options today, including self storage gold IRAs; learn more about this option below.
Features of Self Storage Gold IRA
One of the main features of self storage gold IRAs is that they are self-directed; this means that you are actually in control of your investments, not a money manager. Another main feature is that you can buy gold coins that have been authorized by the IRS (they only allow coins that are 99.5% pure or higher). Another main feature of this type of IRA is that you work with a company who specializes in this type of IRA, and this company will recommend a specific trusted guardian or depository who holds onto the gold coins you select.
Advantages of This Type of IRA
One main advantage of having gold in this IRA is that gold’s value does not fluctuate much; as a result, when the value of other investments like stocks and bonds radically fluctuate, gold is likely to remain steady. This is why it is considered a safe haven for investors.
Another main advantage is that this type of IRA is only taxed when you actually withdraw money from it. Even then, the withdrawal is treated as simple income taxed at the appropriate rate, so the taxes associated with this type of IRA are simple.