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Gold / Silver IRA and Roth IRA Differences

By on October 14, 2015

As humans we all make mistakes that we regret. But that is no excuse to mess up your retirement plan. The reasons are quite simple. Firstly, you cannot afford to make such a costly mistake. People start investment accounts to save money, not to lose it. Losing money along the way can jeopardize your ultimate goal. Secondly, it is unbelievably ludicrous to do so. We live in era where all information lies at our fingertips. The internet is full of blogs that are filled with professional advice. So making mistakes witch such resourcefulness is nothing but carelessness. And that is what makes you a bad investor. If you want to be a good investor and have a peaceful retirement, you need to keep yourself informed. The following information will be useful for beginners who are not aware of the differences between the two main investment options.

Roth IRA

This is one of the more recent establishments in the area. It is a much more financially viable solution than a traditional account since you will not be required to pay taxes at the time of the savings.  In other words, the contributions made by the investor are not tax deductable since they are made through post-tax dollars. This enables you to invest even if the taxes are high during the particular period.

Moreover, contrary to popular misconception, Roth IRA does allow for tax exempt contributions, but do know that many conditions apply to this rule. This tax-free option is quite convenient for investors who wish to save as much as possible during their retirement time. On a negative note, this account has strict income limits. Thus, not everyone qualifies to start a Roth IRA.

Silver/Gold IRA

Most investors mistake this for a type of account. Let’s make one thing clear. It is NOT. Silver/gold is a type of investment option. It is used to protect the money you have already invested on your IRA account. In these troubling times, it is risky to keep your investment all in cash. This is why investors are advised to convert a part of their cash into precious metals. It is possible to do so by using gold and silver IRA rollovers.

By including gold and silver to your investment portfolio you will be able to reduce volatility and risk while preserving your purchase power in times of economic uncertainty. Furthermore, it is wiser to save cash as physical assets instead of pieces of paper since real hard assets are easier to safeguard.

It is important for all investors to understand these basic differences in order to experience a hassle-free retirement period. Apart from these, you could also consider investing in a traditional IRA account. This is the oldest method of investment where the cash you invest is protected from taxes until the time you withdraw it. This way, you will be able to retain your capital gains, interest income and dividends. Whatever method you go with, be sure to set a concrete financial goal for your retirement and work your way towards it.

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