Silver IRAs Explained – How to Add Precious Metals to Your Retirement Plan

Investing in precious metals offers diversification to a retirement portfolio and protection against inflation. However, the IRS taxes these assets differently than other investments and requires certain precautions to ensure compliance with regulatory requirements. In addition to this unique set of rules, precious metals must be stored by an approved depository and kept safe from theft or damage. Investing in a Silver IRA is one way to ensure these assets are properly protected.

Precious metals are becoming a more popular investment among savvy investors. This is due in part to the uncertainty surrounding the Fed’s schizophrenic threats of interest rate increases, a global economic slowdown and the addition of the Chinese Yuan to the International Monetary Fund’s Special Drawing Rights basket of global reserve currencies. This may create an opportunity for silver to strengthen its position as a global currency and provide protection against inflation in the future.

Because of these advantages, many IRAs have begun to include precious metals in their asset allocation plans. But it’s important to note that this shouldn’t be the sole focus of a retirement portfolio. Instead, it should be seen as a complement to traditional stocks and bonds. A Ohio silver IRA investing company can help determine how much of your retirement savings should be dedicated to this type of investment and which metals are the best fit.

The first step in opening a Precious Metals IRA is finding an approved custodian or trustee. These are companies that specialize in setting up these accounts and can help you with the paperwork required to get started. Once you’ve found an approved custodian, you can begin investing in your new account.

You can use cash or transfer funds from an existing IRA or 401(k) to open your account. Then you can begin purchasing physical precious metals, such as gold, silver, platinum and palladium. These metals can be purchased in the form of coins, bars and bullion products. The IRS has specific guidelines on the types of metals that are eligible for IRAs, including purity standards to ensure investment quality.

Once you have made your purchase, the physical precious metals will be held in an approved depository and stored safely from theft or damage. The depository can be visited during business hours to view your investments. Depository fees vary, so be sure to factor these into your overall budget. Custodian fees cover the administrative services that your precious metal IRA investing company in Ohio, while storage fees are charged to secure your precious metals in an insured facility. Be aware that these fees are typically higher than those for other types of IRA investments. But these costs shouldn’t deter you from exploring this unique and potentially profitable opportunity for your retirement savings. This is particularly true if you’re looking to diversify your retirement portfolio with the unique benefits that come with owning tangible assets and protection from inflation.