Do you know what your plan is for retirement? Have you started planning and saving for it? Do you even know how much money you are going to want or need by the time you actually retire? If you do have a retirement account set up and are saving for it do you know what stocks and bonds you have purchased through the brokerage that runs your account? Have you ever thought about doing it yourself or have you ever wanted to have some say in what you are actually investing in?
These are many questions that you may know or you may not. You also may want to take a bigger role in your retirement or you actually may not. Either way today we will be talking about one way that can greatly improve the diversity of your retirement account.
Investing in gold and silver in an IRA is a great alternative to investing in stock and bonds. Many times doing this is called a gold backed IRA or a gold IRA. If you are interested in purchasing gold for your retirement account there are some good rules to live by in order to get the most out of your investment. If you aren't too sure there are some good reasons that you should know of before you completely say no to a gold backed IRA.
Below are rules you should follow and reasons why investing in metals in your Self Directed IRA is a good idea:
1. Always buy from a reputable source.
2. Avoid paying high premiums if you can
3. In considering what type of metals to buy keep the following in mind
a. Bullion is better if you plan to buy and hold and sell the metals in the future
b. US silver eagles is ideal if you plan on holding the metals in the future as currency
4. Buy silver then gold. Silver has more upside potential than gold. We will discuss the benefits of owning silver in a later post
5. You cannot buy rare or collector coins inside of an IRA
6. Make sure the depository where your IRA funds are stored is insured and secured
7. Choose an IRA custodian who has a good reputation and track record
8. All metals stored in a Self Directed IRA are kept private
9. You can take possession of the metals if you choose to. Taxes will be paid on the transfer though
10. You cannot store metals at your house without it being considered a distribution
Investing in gold and silver is a great investment and a great way to diversify your investment. It can be an even greater investment when doing it through your retirement accounts. On a side note there are other types of metals that can be purchased through your IRA and it is commonly referred to a precious metals IRA. If you would like to know more about investing in gold and silver or any other precious metal in your IRA feel free to contact me.
Author: Ben Barker, Self Directed IRA Professional