Individual Retirement Accounts (IRAs) dominate the retirement savings market. They offer a retirement savings account with probable tax-savings. Most Americans diversify their IRA assets between stocks and bonds. However, in recent years, the Self-Directed IRA emerged as a savings vehicle that allows investors to move away from the volatility of the stock market and add other assets, such as precious metals, to their retirement plan.
The laws and regulations governing Self-Directed IRAs, and precious metals in particular, are complex. Contact your local bank and determine if they offer a precious metal option within their IRA options. Work closely with the bank and your financial/tax advisor to determine if the options available are the best for your needs. Self-Directed IRAs do also have limitations of how the assets are used so be sure you understand those limitations.
Despite their complexity, the investments within a Self-Directed IRA have the potential to be lucrative. As with any financial vehicle, it is important to understand how the account functions as a retirement savings vehicle. Work with a lawyer, accountant, or tax advisor to clearly understand any legal and tax pitfalls. Be wary of any “get rich quick” promises. Learn about the product and manage your portfolio accordingly.