How to Open a Precious Metals IRA
A precious metals IRA is a type of retirement account that allows investors to invest in physical gold, silver and platinum as part of their portfolio diversification and protection against inflation or currency deflation which would diminish purchasing power over time.
Anyone looking to open a precious metals IRA must first select an authorized custodian that offers this investment vehicle. There are numerous companies who specialize in offering quality bullion products eligible for use within an IRA as well as exceptional customer service for investors.
1. Select a Custodian
Precious metals IRAs provide an efficient and secure means to diversify your wealth portfolio, with some key points to keep in mind when investing.
First and foremost, you must select a custodian for your account. Like with any investment, selecting an experienced institution with proven results is key – look for companies with excellent track records and customer service as well as convenient online access to your account. In terms of fees charged by custodians, choose those offering reasonable storage and transaction costs.
No home should ever be used as the storage location for precious metals owned in an IRA; doing so would constitute a prohibited transaction and could incur serious penalties. Instead, invest in exchange-traded funds or mutual funds that track precious metal prices and indexes; these are easier to manage while offering inflation protection while carrying lower risks and costs than physical precious metals.
2. Open an Account
Precious metals have long been recognized for their value as a store of value and an insurance against inflation, providing diversification benefits within your portfolio. An Individual Retirement Account (IRA) offers investors an easy way to invest in precious metals with tax benefits added on.
To set up a precious metals IRA, first locate a custodian who specializes in this type of retirement account. Next, contact precious metals dealers who can help you purchase the metals you desire and have them sent directly to a depository for safe keeping.
One solution is to work with Lear Capital, who offer IRA-eligible gold, silver and platinum coins and bars as well as storage services that meet IRS guidelines. Another possibility would be using an exchange traded fund (ETF), although buying shares could constitute the acquisition of collectibles that trigger tax liabilities when distributed from your IRA.
3. Fund Your Account
When purchasing precious metals suitable for an IRA, the most efficient way is through a custodian. A trusted custodian will guide you through the entire process while making sure your investments comply with IRS regulations.
As with any investment strategy, finding an experienced dealer when creating self-directed IRAs is of utmost importance. Look for dealers that provide a selection of eligible bullion products as well as ones who adhere to stringent quality controls when it comes to procuring their metals – for instance APMEX only sells bars and coins that fulfill IRS minimum fineness requirements for self-directed IRAs.
Oxford Gold Group provides a full array of gold and silver bullion products, as well as IRA-eligible coins and bars, that meet BBB requirements for an A+ rating. Their website contains resources designed to guide investors through the process of opening a precious metals IRA account, while secure storage options such as third-party depository services can also be found there.
4. Complete the Transaction
An investment in precious metals IRA is one way for retirement savers to ensure that their hard-earned funds remain safe over time. First, find a reputable Gold IRA company which will assist in opening an individual retirement account (IRA), guide the transfer process, and ensure IRS compliance. Next, choose which products to invest in such as gold bars or coins approved by the IRS that meet certain fineness standards.
Once your research and paperwork is in place, it’s time to start investing. Keep in mind that precious metals historically have had an inverse relationship with paper assets such as stocks and bonds, providing an effective hedge against volatility. Depending on the type of IRA account you own, minimum distributions may need to begin taking place at age 70 1/2; Augusta Precious Metals offers free guides as well as web conferences with Harvard-trained economist Devlyn Steele that can assist in making sound investment choices.
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