Fast Facts about Lear Capital

It is hard to imagine speaking with a person who does not want a secure and sound retirement.  Aging is a part of life that might be hard to swallow.  However, it is something we all need to cope with and understand.  That includes preparing for it.

Saving for our post-working life is crucial.  While social security does exist, it might not be enough.  You can try to calculate that here: https://www.ssa.gov/.  Just keep in mind that to stay comfortable, having a cushion can really help.

That is why opening an IRA (individual retirement arrangement) is such a good idea.  Keep reading to learn about some of the different options available and why you should consider them.

What is a Traditional IRA?

These accounts serve as a way to save money for the future while enjoying tax benefits.  The way this works is that your money is not taxed until you make a withdrawal – at least usually.  Additionally, your contributions could be fully deductible or partially deductible.

You can open an account if you have earned money from employment in a year.  You do not need to be covered by another form of retirement plan to qualify.  Note that if you and your spouse file separate tax returns, you must open separate IRA accounts.

There are contribution limits to keep in mind.  This is six thousand dollars a year before you turn fifty, and seven thousand dollars a year after you turn fifty.  Most people retire by age seventy if they have enough of a cushion to do so comfortably.

What are Self-Directed IRAs?

This is, of course, where things get a bit more complicated.  These accounts put you in charge.  There are not requirements for certain types of contributions, meaning you can deposit alternative investments in them.  This could include real estate, cryptocurrency, and of course commodities.

Now, as far as those assets go, one of the most common types are commodities.  These are physical goods that can be sold in raw form.  Usually, they are used to create other things.

A primary example of these are precious metals.  This includes gold, platinum, silver, and palladium.  If you want to learn more about how to invest in these, you could consult a platform such as Lear Capital for further information.  There is nothing wrong with seeking help, after all!

There are a few things to keep in mind if you decide to go with a gold or precious metal IRA.  Because these are often physical goods in the form of bullion (bars), they will require special forms of storage.  Usually, this is done via your custodian, or specialist, that serves as your broker.

There are also some regulations set by the IRS, despite the self-directed nature of them.  Gold that is deposited must meet certain standards, including a high percentage of the pure metal.  Only some types of coins can be added, and jewelry or other items made of the metals are not eligible.

Why Precious Metals, anyway?

This is a bit of an aside, of course, but I think it is worth touching upon.  Why are precious metals valuable for a retirement account?  What do they bring to the table?

Well, the primary benefit is that they will very likely not significantly depreciate in value.  Humans have used gold, silver, platinum, and palladium for centuries, if not thousands of years.  You can trace it all the way back to ancient Athens and ancient Egypt, in fact.

The beauty of them is just one perk.  They each have certain characteristics that makes them valuable.  This could be their special luster or their conductivity.  Some are even desired because they have low reactivity.

Overall, they are a sound choice to add to an investment portfolio.  Despite some of the expenses that come with storing them and purchasing them, I would recommend checking it out.

The Importance of Saving

Now, maybe you are still not convinced.  Retirement is a long way away, after all.  However, it’s best to start saving as soon as possible.  You can read more on that topic on this site: https://www.irs.gov/retirement-plans/plan-sponsor/types-of-retirement-plans. 

While it isn’t something we are taught in school, it’s a crucial aspect of our adult lives.  If you don’t feel like the figures add up, I understand.  It can be difficult to process how much money we will need after we stop working.  Try to think about what you are living on now.

Once you have that figure, I would aim for going higher than that in your retirement.  It’s a time of freedom, after all.  If you have more money stashed away, that gives you opportunities to explore the world and enjoy the fruits of your many years of labor.  Whatever you decide for your savings methods, don’t procrastinate on it!