Traditional IRAs and other retirement accounts have their place to provide a financial nest egg for the future. There are, however, precious metal IRAs that can help you diversify your investments and incorporate the ownership of gold and silver into your portfolio. A financial planning company can provide you with the details of how exactly to get your account set up and funded. Your precious metals dealer can also provide you with simple steps to get you started. First you would have to establish a precious metals IRA, next the account would have to be funded, and finally you could provide your dealer with specific investment instructions. Regular contributions to a precious metals IRA can provide you with financial security for your future.
Establishing a Precious Metals IRA Account
The first step to start investing in precious metals is to establish an IRA that allows you to house metals within it. An investment brokerage house can provide you with all the details and can open one in your behalf. Their rates and fees would be disclosed in pamphlets and other literature that they can provide you with. Be sure to read the materials thoroughly so you know what to expect and how your account is to be managed. Only after the account has been established can you start investing in metals to contribute to your IRA.
Funding Your Precious Metals IRA Account
Once your IRA account has been established you can then fund it. There are a couple of strategies that you can employ to do this. First, if you already have an IRA or 401k you might want to consider rolling it over to your newly opened precious metals IRA. This way you can have a sum of money available to buy silver bullion coins with. The other option is to contribute cash to your account on a regular basis and amass a balance that enables you to make purchases. Cash is the only way contributions can be made to fund your account except where you may want to roll over or transfer an IRA or 401k.
Provide Investment and Distribution Instructions
Your precious metals dealer will need instructions from you once you have your account open and funded. The gold and silver can be stored at a depository that is internationally recognized and built to house precious metals only. When you are ready to take a distribution you have the flexibility to take actual bullions or to convert them to cash and have cash instead. This allows you to choose when and where you want to sell your precious metals. You get to decide the timing of buying or selling precious metals.
Investing with IRA Approved Coins
For a number of years only a select few coins were eligible to be housed within a precious metals IRA. American silver eagles were approved and still are eligible for IRA investments. In 1998 the U.S. platinum American eagle coin was introduced and allowed to be used as an IRA investment. There are also certain bullions of gold, silver, palladium, and platinum that can be IRA eligible. Investing in precious metals and incorporating those investments into an IRA can provide you with financial security in the future.
Dorian Travers is a writer and blogger and likes to keep his readers informed on subjects where life meets money. To learn more about how you can secure your IRA with tangible assets, click here.