An Individual Retirement Account, commonly called an IRA, is a way for people to save for retirement while often receiving specific tax advantages. IRAs are offered by many financial institutions and come in a variety of types, including Traditional IRA, Roth IRA, SEP IRA, and Self-Directed IRA. Most participants use an IRA to invest in mutual funds, with a heavy reliance on stocks and bonds. Among the various types of accounts, only the Self-Directed IRA allows an investor to acquire and include precious metals in their retirement plans.
The regulations pertaining to investing in precious metals with a Self-Directed IRA dictate that most government minted coins (American Eagles, Australian Nuggets, etc.) are permissible while bullion is permissible if it meets a standard level of fineness, and is produced by a COMEX or NYMEX approved refiner. When a retirement account invests in precious metals, the metals are typically held by a third-party custodian, such as a bank; in fact, it is required that bullion investments be held by a qualified third-party. If investing in precious metals is of interest to you, it is strongly advised to be familiar with the IRS regulations for how such investments are handled within an IRA.
Financial professionals agree that asset diversification is the key to success. The purchase of precious metals with a Self-Directed IRA diversifies your portfolio and gives you the added advantage of tax-deferred growth. Additionally, with the Self-Directed IRA you have the flexibility of buying and selling on a moment’s notice. The uncertainty of the stock market, as well as the instability of the overall economy, highlights the need for investors to be diversified and educated with their investments. Precious metals are overlooked options that demand your attention. Do your research and determine if a Self-Directed IRA is right for you.
Source: The Gold News