Making Your Retirement True ‘Golden Years’: Gold IRA’s vs. Real Estate

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Making Your Retirement True ‘Golden Years’: Gold IRAs vs. Real Estate

There are so many different ways you can invest in your retirement. Just two of those ways include a Gold IRA and investing in real estate. Both have their pros and cons and deciding which one is right for you depends on your particular circumstance. However, learning more about each one could help you make your decision. Keep reading to learn more about Gold IRAs vs. real estate and how to get started investing in your retirement as soon as today.

Real Estate as Retirement

Part of the American dream includes buying a house with the white picket fence, selling it when it’s time to retire, and downsizing into something smaller for your golden years. You can also buy more than one property to rent and let the checks come in every month for your retirement. While all of this can help with funds for retirement, you may want to think twice before putting all of your nest egg into it.

Some facts about investing in real estate as retirement include:

Leverage

The main benefit of investing in real estate is the leverage you gain from it. This means the use of borrowed capital to increase an investment’s potential. By putting a down payment on a home and paying it off via a monthly mortgage, you use borrowed money to make it better. While you can leverage gold, there are more considerable benefits to leveraging real estate, making it an enticing draw for many.

Low liquidity

Liquidity is the ability to sell. While you can always decide to sell your real estate at any time, it’s not so easy. The process takes a long time and, if real estate prices are on a downswing, you could be losing out on potential money that you would have had if you just waited another year or two. Real estate liquidity involves a ton of paperwork, professionals, and time, and there might not always be a buyer.

Tax benefits

When you invest in real estate, you can enjoy many tax benefits. While there are many tax benefits to investing in a Gold IRA, real estate rules the roost. These include:

  • Deducting expenses
  • Deducting depreciation
  • Pass-through deductions
  • Capital gains tax
  • Deferred taxes with incentive programs

Risky

Investing in real estate is one of the riskiest investments you can make. This is because you never know what may happen to the home you’re buying, what may happen to the location it is in, and how the market may rise or fall. Changes to zoning laws, new infrastructure in the area, or natural disasters could cause your property to become less desirable and, in turn, less valuable.

Gold IRAs as Retirement

Diversification

The thing about investing in real estate is that its value is tied to whether or not the economy is positive. The same goes for investing in stocks and bonds. Gold, however, is linked to the complete opposite. When the economy is not positive, the value of gold rises. This allows for diversification in your portfolio, protecting your other assets.

No counterparty risk

There is absolutely no counterparty risk to owning and investing in gold. You do not have to worry about paying your mortgage on time, it cannot go bankrupt, and you don’t have to worry about somebody else not fulfilling their end of the deal. Once you own gold, it is tangible, and it is yours.

High liquidity

Where real estate has low liquidity, gold has high liquidity. It may take months or years to sell a real estate property. However, selling your gold can be done in just moments. There is always a buyer for gold, and it also has price transparency. This means you always know the price of your gold, which is not always true with real estate.

High divisibility

You cannot sell part of your real estate investment. You either own the entire thing, or you must sell the whole thing. When it comes to gold, you can sell bits and pieces at a time as needed. A huge benefit to investing in gold is that if gold shoots to an all-time high and you’d like to cash it out, you are welcome to do that.

Less upfront capital

It is no secret that buying a home requires a lot of money. Not only for the down payment, but you need capital for renovations, furniture, fixes, and keeping up with the maintenance. This can be very difficult for many investors, mainly including millennials. Luckily, gold requires much less upfront capital. At the time of this blog post, an ounce of gold costs around $1,789.

About Priority Gold

Investing in real estate can be very lucrative if you have the upfront capital to buy valuable property in a desirable area. However, you never know what may happen to the economy. That is why investing in a Gold IRA is always a safe bet. Even if you have already invested in real estate, investing in gold will help protect your real estate investment.

Priority Gold is one of the most trusted precious metals dealers in the United States with BBB A+ Rating, AAA Rating with Business Consumer Alliance, and 5 Stars Rating with TrustLink. We specialize in providing precious metals investment services with Security, Liability, and Great Convenience for customers. Our team is committed to helping streamline their precious metals purchases at a fair price, selecting suitable precious metals portfolios, and meeting their important financial objectives.

We offer Free Storage for qualifying Gold & Silver IRA accounts, a fast & easy gold buying process, and smooth IRA Transfer. Priority Gold guarantees the highest customer service standards, which come with honesty, professional conduct, and the Ethical Code of Business.

For more information, visit us at prioritygold.com

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