Why you should open a gold IRA for 2025
The start of a new year isn't just a time to get your resolutions in order, it's also a smart time to review your financial health. What worked in 2024 may not be applicable for 2025, whereas other investments and savings may require a re-working to ensure they remain as advantageous as they have been in recent years.
One investment type that many may be considering now is gold. The precious metal saw a surge in price last year, breaking numerous records throughout 2024. And it can still provide major benefits for investors, particularly when utilized in a gold IRA format.
Because this unique investment isn't as widely known as stocks or bonds, however, it helps to know some of the timely benefits of the metal to understand why it could be a smart investment to open this year. Below, we'll break down three big reasons why you should open a gold IRA for 2025.
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Why you should open a gold IRA for 2025
Not sure if a gold IRA would benefit you now? Here are three features that can make it a smart move for the new year:
To protect against inflation
Hopes that inflation was on a permanent downward trend were erased in recent months as the rate rose in both October and November. Now at 2.7%, the rate is nearly a full percentage point above the Federal Reserve's aimed-for 2% goal. And if the reading for December 2024, to be released on January 15, shows an additional rise, your other investments could be adversely affected.
That's why it's important to have some inflation protections built into your portfolio in advance. A gold IRA can provide that function thanks to its historic reputation for maintaining and even rising in value during inflationary periods. And with inflation still problematic, if significantly cooled, this is still a requirement for many investors.
Protect your portfolio with gold here.
To diversify your portfolio
Because gold often maintains its value during uneven economic cycles, it's considered a smart diversifier. And if you've checked your retirement savings and investments over the last few months, you already know that a diversified portfolio is key to weathering economic uncertainty.
The stock market plummeted in mid-December amid signs that fewer rate cuts were on the horizon for 2025, but the price of gold remained relatively consistent during that same period. This allowed investors who already had diversified by adding gold to their portfolio to better respond than those who had not. And with economic predictions for 2025 inconsistent, it may be safer to add this traditional portfolio diversifier now to protect against unexpected developments to come.
To secure tax benefits
A gold IRA has tax benefits in much the same way a traditional IRA does. Contributions before taxes can help lower your tax bill for the year in which those contributions were made. And while it may feel a bit early in 2025 to start thinking about this, it's never too soon to get your tax situation under control. By making these moves now, you'll get ahead of any tax adjustments your accountant may suggest when you prepare your return for 2024.
Learn more about a gold IRA's tax benefits now.
The bottom line
A gold IRA can protect your investments from the negative effects of inflation, diversify your portfolio ahead of unknown economic events and help lower your tax bill for each year in which contributions are made. These timeless benefits are always smart to add to your portfolio but in today's unique economic environment, they're arguably even more advantageous to incorporate. Just make sure to not overinvest in the precious metal, either, with many experts recommending a limit of 10% or less of your overall portfolio.
