Retirement savings is a wide-ranging subject, from deciding how your wealth can outlive you to making sure your assets are diversified enough to withstand any financial climate. IRAs, or Individual Retirement Accounts, as they appear today were first described in the Employee Retirement Income Security Act of 1974 (ERISA).
With pensions still a popular option among employers back in the 1970s, the establishment of IRAs essentially gave people a look into how saving for retirement would look in the future, ie, today. ERISA did not require companies to create pensions–allowing an opportunity for financial advisors to offer more products to the Baby Boomer population joining the workforce.
Fast-forward to 2017, and money that would go into traditional pensions forty years ago has found a number of alternative paths.
Such avenues range from personal accounts and government benefits to employer-sponsored accounts and 401Ks, as Rosland Capital shows on this retirement graphic. The original source for the general idea of this diagram explains gold IRAs, but even within that spectrum there are other precious metals and assets that can be purchased to build a diversified portfolio.
Roth and traditional IRAs are other options from companies like Vanguard. One of the more noticeable differences between the two is their stance on withdrawals before the age of 59, with Roth IRAs having no penalty for taking money that investors have already contributed themselves. For traditional IRAs, ordinary income tax rules apply. Both options allow investors to purchase gold stocks and ETFs, but not gold bullion.
Individual 401Ks allow for gold bullion purchases, but most other 401Ks and retirement plans restrict it. As with other commodities and assets, factors that affect overall world markets also have an effect on gold’s movement against the US dollar.
Gold’s overall price swings result in news stories incorporating many different US-based economic factors into the discussion that affect the cost of retirement, from job reports to interest rate policy, leaving much to track in February.