Did you know that your IRA can be funded with physical gold or silver? Your individual retirement account is able to be funded with either gold or silver, and since this is your personal retirement account, you’ll be exempt from capital gains taxes on your precious metals. This is important because your assets may appreciate a great deal during the time you’re in this position, and being exempt from capital gains tax will save you a great deal of money.
Diversifying a retirement portfolio with precious metals is a vital part of having a truly diversified portfolio. Generally, precious metals have seen some of there best performance during times of political unrest, volatility in the US dollars, terrorism, inflation, deflation, and downturns in the stock market. Do any of these events sound like anything that’s been happening lately?
There are many things to consider when investing in Silver for retirement. Here are some issues that you will need to consider carefully when adding Silver to your portfolio:
What Silver form factors are eligible for IRA investment?
The regulations regarding silver investment in IRA’s is very specific as to the type and purity of silver coins eligible for investment. The silver must be .999 fine and serve as legal tender. This means you can use any of the offerings from the world’s governments that match this purity like the American Silver Eagle, Australian Kookaburras, Canadian Maple Leaf, and Mexican Libertads. Additionally, you can invest in Silver Bullion bars, but only if they are certified by the Commodities Exchange that they are .999 pure. The reason that you must have .999 pure silver is that for it to be stored at a custodial facility, it must meet certain purity requirements.
Can I Add Silver Coins I Already Own To The IRA?
Unfortunately, you can’t add Silver coins you already own to your IRA. The regulations state that you must buy your coins specifically for your IRA.
Can I Hold The Metals Myself?
Regulations prohibit investors from holding precious metals in their IRA’s themselves. Instead, you’ll need to use an approved custodial service. HSBC has a great service which is just $90/month regardless of the size of your portfolio.
Can I Take Delivery Of The Metals?
As you cash out your retirement plan, you can take physical delivery of the Silver in your portfolio. This is advantageous because if there happens to be volatility in our American currency, or you want to take advantage of a bull market on Silver, you can take delivery of the metal directly, rather than just receive the amount of money it’s currently worth.
Who Do I Talk To About Investing?
Diversifying your retirement account with precious metals is a responsible choice for helping hedge against volatility in an ever changing market. Talk to a broker today about moving some of your liquid assets into a commodity like Silver.
How Much Silver Can I Add To My Portfolio Per Year?
For Americans under 50, you can add only $4000/year to your IRA accounts. If you’re over 50 it’s a $5000 limit. It’s important to note that this applies to both your traditional and Roth IRA accounts simultaneously. You can only add up to $4000 distributed amongst all the IRA’s you have.
What’s The Difference Between Roth IRA’s and Regular IRA’s?
Roth IRA’s were the second incarnation of the IRA plan by the government. In 1988 William Roth of Delaware helped usher a bill that allows citizens to put “after tax” money into an account. Upon cashing it out, they won’t be taxed on it again.
A traditional IRA, created in 1973 allows citizens to deduct the amount of money they invest in their IRA from their taxes. However, upon cashing it out, they’ll be subject to taxes just as if they were earning this money from a job.
Each IRA account may be suitable for different situations. Make sure you talk to a financial planner about what the right move is for you.