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Why a Biden Presidency Makes a Gold IRA Retirement a Smart Move

The stock markets are already reacting to Joe Biden’s presidency and not in a positive way. Savvy investors are preparing for a potential recession by adjusting their retirement portfolios.

Many people in the United States are ditching stocks, treasuries, and bonds for gold IRAs. Compared to other investments, a gold IRA may offer greater stability under the Biden administration. Here is a closer look.

What Is a Gold IRA Retirement Fund?

A gold IRA shares many features with a standard individual retirement account (IRA). With a traditional gold IRA, your contributions are tax-deductible. However, the steps for setting up and managing a gold IRA are a little different.

A gold IRA is administered by a custodian. Unlike a gold ETF, you purchase physical gold. It is purchased from precious metals dealers and stored in a depository.

How Will Biden’s Presidency Impact Your Retirement?

One of Biden’s first goals in the White House is to stimulate the economy with government funds. He recently proposed a $1.4 trillion economic package that even left some Democrats calling it too expensive.

Biden has also discussed potentially changing the social security program. Democrats are worried about the program running out of funding within the next one or two decades. To address this issue, Biden wants to increase the income cap to tax more Americans for social security.

If you are not in the bottom income bracket, you may face higher tax rates under Biden’s presidency. Along with changes to social security, Biden may try to adjust the tax brackets and increase taxes for wealthy citizens.

Millions more Americans may fall into the lowest tax bracket, which means that the government will collect millions less in taxes from the poorest segments of the population. However, the highest tax bracket may expand to include more high earners.

Biden’s Tax Plans May Also Impact the Business World

To partially fund his agendas, Biden will likely increase corporate taxes and abolish various tax breaks for businesses. The money that the government takes from businesses will barely put a dent in the national debt. Businesses are also likely to suffer from these changes.

Along with increased taxes, businesses may soon need to pay increased wages. Biden supports increasing the federal minimum wage to $15 per hour. Economists predict that this change could cost the United States over 1.8 million jobs over the next several years.

Placing more financial pressure on businesses often results in lost jobs and price increases. Businesses need to compensate by firing employees and charging customers more, adding to the country’s economic problems.

Any problems that businesses face tend to translate into losses in the stock market. The market is unlikely to grow significantly in the coming years and may even start to decline.

Gold IRA Retirement Protects Against a Volatile Market

A gold IRA retirement strategy offers more security thanks to the following advantages:

Gold is one of the most stable investments. The price of stocks is heavily influenced by the state of the US economy while gold is an internationally accepted currency. It experiences fewer fluctuations in price.

Compared to other commodities and bonds, gold may also provide a better return. Between 1971 and 2019, gold averaged an annual return of 10.4%. The S&P 500 offered a return of just 4.15% during the same period.

You also gain more control over your investments. As with a traditional self-directed IRA, you have the freedom to decide what to buy and sell using the funds in your account. You also continue to receive a tax deduction for your yearly contributions.

A gold IRA allows you to purchase physical gold, which is stored in a safe facility. Stocks, bonds, and treasuries are not tangible investments.

In the end, no one can predict changes in the stock market with absolute certainty. However, the next four years are likely to be difficult for the economy. If you want to protect against the potential risks of Biden’s presidency, consider rolling over your current IRA into a gold IRA.

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