When it comes to protecting my wealth and retirement, I firmly believe that preparation is key. This includes doing careful research, keeping my eye on financial headlines, and making sure I don’t miss important deadlines. For example, Tax Day this year is April 18, 2023—which also means that it’s the deadline for IRA contributions for the 2022 tax year. And considering the level of economic uncertainty we’re currently experiencing, it may be more important than ever to ensure that our wealth is properly diversified and protected.
Economists are still expecting a U.S. recession in 2023.
On February 27, 2023, Business Insider reported on former U.S. Treasury Secretary Larry Summers taking to Twitter to issue a warning regarding the impact of increased inflation on our economy. According to Summers, “There is no real historical precedent for the idea of a managed disinflation from current levels without recession.”
Meanwhile, CNN reports that “economists’ crystal balls are growing cloudier,” referring to mixed economic messages that include high employment numbers amidst hot inflation, but economists “still expect a recession.”
In other words, our nation’s economic future remains uncertain in the short term. This may lead to consumers reevaluating their asset mixes with an eye toward assets like gold that have historically been used as hedges against inflation or economic uncertainty. But while I like to ensure that my wealth is protected in the short term, I also like to keep my eye on the real prize: long-term growth and stability.
Right now, you can contribute to your IRA for both 2022 and 2023.
Before Tax Day, you’re still allowed to contribute to your IRA for the 2022 year. The 2022 limit is $6,000, or $7,000 for taxpayers 50 and older. But you don’t have to stop there. You can also make your contributions for the 2023 tax year at the same time—and the limits have increased by $500, meaning you can contribute up to $6,500 (or $7,500 if age 50 and older) for 2023.
With analysts eyeing a possible recession, being able to set aside $14,500 in a retirement account—especially one that includes assets like gold that may be considered lower-risk—could provide some peace of mind versus leaving that money in potentially higher-risk assets like stocks. It’s a win-win situation: You potentially reduce your portfolio’s overall risk exposure during a period of economic uncertainty and set more money aside for retirement.
You can also roll an existing IRA or 401(k) into a self-directed IRA backed by physical gold.
Something to consider before making those IRA contributions: If you haven’t already, you may want to consider opening an IRA backed by physical precious metals. These self-directed accounts give you complete control over your asset mix and allow you to allocate a portion of your retirement portfolio to assets like gold, silver, platinum, and palladium, giving you the benefits of both an IRA and physical precious metals ownership.
If this sounds like something you would be interested in, give us a call. There may still be time to roll over an existing IRA or 401(k) into a gold-backed IRA and also make your contributions for the 2022 and 2023 tax years.
When it comes to protecting your wealth, preparation is key. Gold may help you prepare your retirement portfolio for the uncertainty ahead, and with Tax Day approaching, now may be the perfect time to add a precious metals IRA to your retirement portfolio.
