Marketing companies have a number of strategies to persuade their target audience and one such strategy involves playing to the basic fears of the people, in fact this strategy is used widely not only by marketing agencies but also by governments to engineer public opinion for policy making. One way to persuade the people through fear tactics is to create a problem where none exists or to present a hypothetical problem for the more prudent customers.
From here we can understand that people saving up for their retirement are one of the easiest targets of such marketing campaigns, you may even have received targeted adverts from various agencies, blogs or sites stating how financial collapse is imminent and retirement savings of millions are at a risk of being wiped out. By playing at the base fears of people saving up for their retirement, marketing agencies compel people to take action and do something to make sure that their retirement savings are not wiped out and the risk mitigating strategy given by marketing agencies is the usage of gold IRA rollover options.
Read more: Best Magnetic Screen door should get one
Now this does not mean that a Gold IRA is a rip off or not that useful, no. They are quite useful and have their advantages but one must be wary about the claims made by advertising agencies. Some agencies claim that Gold IRAs can give up to 60% profit, others claim that Gold IRAs are the only way to prevent your money from losing its value, some even make sky high claims of 80% probability of a financial crash. Apparently every year this impending crash gets delayed by a year and the marketing agencies simply renew their adverts and use them again on unsuspecting and vulnerable target audience.
Read more: Most Reliable Refrigerator
Once again, this does not mean that Gold IRAs are a scheme to rip off people off their investment savings, no this merely explains how marketing agencies use marketing strategies to target customers and make tall claims that may be untrue or wildly exaggerated. Marketing strategies thrive on the lack of knowledge by the customers, with so many products around customers cannot be expected to be well informed about every product available in the market and marketing strategists exploit this knowledge gap. Therefore, if customers know more about the products the are being pitched they may be able to make better and more informed decisions without being influenced by sometimes misleading marketing campaigns.
Read more: Roper Washing Machine Reviews to Know Well
Gold IRAs have their pros and cons like any other investment option and if the customers have sufficient knowledge then they will be able to ascertain if gold IRAs suit their individual needs or not. For starters Gold IRAs are an option available for those people who want to hedge their retirement savings. Hedging is a way to offset the risk of loss. Generally 401(k) accounts have very limited investment options. The funds present in the 401(k) accounts can be invested into shares or mutual funds but these investment options run the risk of loss. Shares carry periodic dividends but the companies can stop dividends it does not have enough profits, similarly in case of weak financial performance or any other reason the market value of shares of a company can take a dip and this ends up weakening the value of investments and thus reduces the net value of retirement savings. This is where Gold IRAs offer some stability because precious metals do not have the same risk profile as other marketable securities.
Precious metals are perceived to be more stable because of their intrinsic value, this means that their value can never be zero whereas shares and other investments run a risk of default, having your retirement savings wiped out is a real risk but the probability of it happening are not as high as claimed by some marketing agencies. Since the 2008 financial meltdown a lot of measures have been taken to prevent such a situation from occurring again, however the risk is there and this is why Gold IRAs allow people to secure their retirement savings by investing them into precious metals. It must however be remembered that not all of the savings should be invested, it is wise to diversify the investment options so that all of your eggs are not in one basket.
Read more: Heavy duty washing machine
One could say that by investing your retirement savings into Gold IRA you can significantly reduce the risk, while this is true it must also be remembered that Gold IRAs do not pay a dividend neither do they carry any sort of periodic return. Instead the only way to make a profit is to cash out on the investment after retirement but this depends solely on the spot price of the precious metals on the day of making the future transaction. If for some reason the spot price is lower than it is today then you will not be able to make any profit, whereas if the spot price is higher then you may very well make a profit but it will not be equal to the profit you could have made by investing in other investment options.
This can be understood with the help of a simple rule. The return on investments is directly proportional to their risk profile, this is called a risk premium. The higher the risk on an investment, the higher its return will be. This is why unsecured loans have high interest rates as they carry a high risk of default, therefore investors charge a premium to offset the risk.
Gold IRAs have minimum risk and therefore the return too is minimum. By investing in Gold IRAs you can secure your savings but you will not be able to grow them this is why it is usually advisable to invest only a portion of your savings in to any single investment option. This does not mean that all Gold IRA management companies are trying to rip their customers off, let us have a look at some of the well known companies offering Gold IRA management services.
Lear Capital is the market leader when it comes to buying and selling bullion. The company has a large base of customers with Gold IRA accounts, the experience and expertise of the company allows it to offer market insight and advise to their customers which other companies cannot, thus the customers of Lear Capital have the added advantage of having access to premium services. The company charges annual fee of $180 that includes storage and custodial services, transaction charges are calculated separately.
Gold co is a new entrant in the market but it has already gathered some heavy weight endorsements from political figures. GoldCo specializes in offering customized services to their clients therefore their plans can be tailor made according to the investment needs of their clients. GoldCo has state of the art storage and custodial set up that allows for the separate storage of precious metals.
Orion metal exchange comes with a hefty experience of 50 years in the industry, their experience allows them to charge minimal fee with no transaction costs and up to three years of zero custodial and service charges. Orion offers a range of precious metal options which can be seen on their website. Based in Los Angeles, Orion has offices in all 50 states. The precious metals are all stored in one location in Delaware.
Author: Jeffrey L. Ito
The best posture for a selfie 202014 Feb, 2020
An In-Depth View To Deal Commercial Real Estate Workings12 Jan, 2020
Huion h420 usb graphics drawing tablet board kit 202016 Dec, 2019
Are computer technicians in demand10 Dec, 2019
Admitme tv login step by step10 Dec, 2019
How to connect Netflix to TV from phone Right way10 Dec, 2019
How to update Samsung Smart TV step by Step29 Nov, 2019
Essential iphone apps for business use