Why Invest in Physical Precious Metals in an IRA?
Investing in physical precious metals such as gold and silver can be accomplished in several ways. When many would-be investors think of investments in precious metals, they think of going down to the local coin and bullion shop and purchasing some bullion bars, coins or rounds. They then must have a plan for storing those precious metals.
While buying precious metals with cash and storing some gold or silver at or close to home has some advantages, what many simply do not realize is that they can use their existing IRA accounts to purchase and hold precious metals.
If you do not have an existing IRA account, setting one up is simple and convenient. An IRA account can be a useful tool for saving for your future. Precious metals within your IRA account can potentially help secure your financial future.
Potential benefits of a precious metals IRA:
- A precious metals IRA offers the opportunity for tax-deferred growth. One of the largest benefits of an IRA is the ability to invest on a tax-deferred basis. You can take earnings (up to a specific amount) and invest those earnings in an IRA account without paying taxes on those earnings. In addition, capital appreciation within an IRA account is not taxable until withdrawals are made. This means that you may potentially pay less income tax now while also allowing your investment capital to grow on a tax-deferred basis. Any questions surrounding precious metals IRA rules and regulations as well as any tax questions should be directed to your tax professional.
- You can purchase many types of bullion bar and coin within an IRA account. There are many strict guidelines on what types of precious metals can and cannot be purchased in an IRA account. There are, however, many products that are IRA eligible and these products come in various forms such as bars, coins and rounds. Generally speaking, coin and bullion products that are IRA eligible tend to be some of the most recognized and liquid. Coins like American gold and silver eagles as well as Canadian gold and silver maple leafs to name a few.
- Storage of your precious metals is handled for you. When you purchase precious metals within an IRA account, those metals must be stored in an approved precious metals depository. An example of an approved depository is the Delaware Depository. These locations are extremely secure and feature state-of-the-art security features. Your precious metals are fully allocated and accounted for and may even be insured. If you are looking to grow your holdings of precious metals significantly, depository storage can bring added value as you no longer have to worry about home storage or any of the potential risks that come along with it.
- Your custodian will provide you with detailed, regular account statements. When you purchase precious metals within an IRA account, you must pick a third party IRA custodian to open an account with. These custodians will handle all aspects of your precious metals transactions including paying for purchases out of your IRA funds, arranging shipping of your precious metals to an approved depository and providing regular statements of account. This allows you to know exactly what your holdings are at any given point and their approximate value at any given point.
If you are looking to make any substantial allocations into gold, silver or other precious metals, a precious metals IRA may be a smart choice. It has never been easier than it is today to set up a precious metals IRA account and there are many custodians to choose from. In fact, the entire process can be completed within a matter of days. Not only that, but your depository can help ensure your metals remain safe, secure, and accounted for.
A gold or silver IRA gives your retirement portfolio added protection from many of the financial unknowns and is a convenient and secure way to help you achieve your objectives.
Please reach out to our experienced precious metals executives with any questions that you might have about investing in gold or silver and the process of setting up a Precious Metals IRA.
Talk to an IRA advisor about how to roll over your 401(k) into a Gold IRA by opening a self-directed IRA account, contact us or call us at 800-341-8584 today.