Your retirement fund is one of your most precious assets, and should be closely safeguarded to ensure you enjoy your golden years without financial worries. This is why we highly recommend investing in physical gold and silver.
Over the years, gold and silver have provided effective portfolio diversification and served as a hedge against economic uncertainties. In times of high inflation or significant dollar devaluations, the value of gold and silver typically goes up.
While extreme government policies, political unrest, corporate mismanagement, natural disasters, and the like can all but wipe out the value of stocks, bonds and similar assets, the intrinsic value of gold, silver, and other precious metals remains intact and unaffected by these external factors.
How to invest in precious metals
If you want to add gold, silver, and other precious metals to your retirement investment portfolio, consider opening a Gold or Precious Metals IRA. This is a self-directed IRA where you can hold physical gold, silver, and other precious metals – something you can’t do with a conventional IRA.
A self-directed IRA allows you to invest in a broad range of assets in addition to stocks, bonds, and mutual funds. These investments include real estate, tax lien certificates, private placements, and precious metals.
Tax benefits
As with a conventional IRA, a self-directed IRA may be either traditional or ROTH.
In a traditional self-directed IRA, your investments are tax deductible and can grow tax-free until you take a distribution. Any profit or income you make from an asset or its sale is free from capital gains and other taxes as long as you keep the money within the IRA.
Taxes will be computed and applied when you take a distribution, which can start when you reach the age of 59.5 years (voluntary distribution). When you reach the age of 70.5, you will need to take required minimum distributions (RMD).
In a ROTH self-directed IRA, you can pay for taxes now and enjoy tax-free distributions when you reach the age of 59.5 (for voluntary distributions) or 70.5 (for RMDs).
How does a self-directed IRA work?
The following are the steps in opening a self-directed IRA:
The trustee or custodian keeps a record of all your IRA transactions, including expenses and payments made, and profits earned from an asset’s sale or income.
How does a Precious Metals self-directed IRA work?
If you are adding gold, silver, or other precious metals to your self-directed IRA, you need to comply with additional measures, as follows:
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