If you’re an investor with significant retirement savings, it makes sense to allocate a portion of your portfolio to precious metals. They provide portfolio insurance, protecting against the decline of traditional assets and bolstering the stability of your savings.
However, if you want to invest in precious metals through your IRA, there are some things you should know before getting started. First and foremost, it’s important to understand that your IRA will hold physical precious metals, rather than exchange-traded funds (ETFs). In addition, there are different ways to purchase gold and silver in an IRA, and the method you choose will determine whether or not you pay a dealer’s transaction fees.
Precious Metal IRAs are unique investment tools that allow for the tax-deferred purchase of physical gold, silver, platinum, and palladium in your IRA. These precious metals can then be distributed just like any other IRA-approved asset. Whether you’re rolling over your 401(k) from an old employer or making a direct contribution, you can open a self-directed IRA for precious metals, with a company like IRA Financial acting as your trusted custodian.
The reason why investing in precious metals makes sense as an IRA rollover is because they’re considered “precious” and have been used as a store of value for centuries. In addition, these metals also have industrial uses and can be used as a hedge against inflation. In the past, gold and other precious metals have performed well during economic downturns and recessions, when their values rise relative to other assets.
Investing in precious metals through an IRA is also beneficial because it provides investors with an opportunity to diversify their retirement investments. In fact, experts recommend allocating as much as 5% of your total savings to these metals. This will ensure that you have a healthy balance of growth and stability in your retirement portfolio.
It’s also important to understand that, like any other investment, a precious metals IRA will have its own set of risks. This is why it’s important to work with a reputable dealer and understand the types of metals that can be purchased through an IRA, including their fineness and other requirements.
In addition, it’s important to monitor the performance of your precious metal IRA on a regular basis to make sure that it’s meeting your financial goals. By tracking market trends and prices on a regular basis, you’ll be able to keep your retirement savings on track and protect them from future declines.
If you’re looking to make a direct contribution or roll over your IRA into a precious metals-based IRA, the process is simple. Just make sure you have a trusted and reputable Arlington gold IRA investing company, such as IRA Financial, who can help you establish your own Solo 401(k) plan hassle-free, then use your new bank account to buy your desired metals from your preferred dealer. Your custodian will then store your assets in an approved depository, where you’ll be charged annual storage fees.