Who does not want the security of retiring in peace? Financial economies have been known to be extremely volatile, especially today. The 2008 crisis rendered many families insolvent and caused tremendous upheaval in society. Nobody wants to go through that experience again, so it becomes important to plan your retirement in the best possible manner.
Whatever your asset size may be, you must ensure that you get the balance right by diversification. Diversifying your assets will help to increase the odds of weathering the storm of volatile markets and turbulent economies.
In fact, diversity is of primary importance when it comes to planning your retirement savings. Securing your future with precious metals in your IRA account is one of the most recommended investment options available today.
It gives you the security that you will need to ensure that you do not lose your hard earned money when you need it the most. This is where precious metals can play a big role in your IRA plans and will help you to balance your IRA appropriately. Historically, financial experts have advised that saving 10 to 15 percent of your IRA funds in precious metals is a prudent investment strategy.
Why are Precious Metals a Good Investment for Your IRA?
A diversified investment portfolio is always safer than putting all your eggs in one investment basket. Precious metals can be a shielding force from value depreciation. This has been true for generations, as they provide a strong buffer against inflation and instability.
Unlike other assets, precious metals usually retain their value despite uncertainty breeding around them. Investments in gold, silver, platinum and palladium have provided a bolster for people’s savings in times of unpredictable economies and will perform the same role in your IRA.
You can diversify your Roth or traditional IRA by adding investments in precious metals to it. More importantly, you are able to transfer your current IRAs to qualified precious metal IRAs without a penalty or tax involved.
Precious metal IRAs offer flexibility — you can choose to cash in on your precious metal holdings or you may wish to take physical possession of the precious metal to sell at a later date. A precious metal IRA investment offers you a more balanced portfolio, along with providing the added advantage of flexibility.
Today, there are many factors that are beyond your control that can affect your current financial status and, more importantly, your retirement funds – volatile stock markets, decreasing monetary valuations, falling prices of real estate and weakening of the economy.
By increasing your financial security through diversifying your assets, you can rest assured that you will have a secure future to look forward to. After all, nobody wants to live a hard life after they retire! Precious metals are increasing in significance as they are one of the few assets that increase in value, despite economic conditions.
Here are some reasons why precious metals are the best investments to include in your IRA:
• Precious metals will keep your IRA safe: Precious metals like gold and silver have always been considered to be safe items of wealth. Because they do not decrease in value, they keep the investments of your IRA safe for your retirement. Today, more and more people are converting their IRA to precious metals as the process is hassle-free and safer in the long run.
• Value Retention: While the dollar value may have fluctuated, the value of precious metals have either retained or increased. With a precious metal IRA, you have the assurance that your IRA will be protected.
• No additional money: You will not need to invest additional money into your IRA account. You can use the assets in your existing retirement account to buy precious metals for your new IRA account.
• Flexibility: If you have included precious metals in your IRA, you will be able to enjoy a certain degree of flexibility in terms of where you want to invest and the type of assets you want to invest in — you can choose between gold, silver, platinum and palladium. If you have opened a gold IRA account, you can choose whether you want to receive physical gold or whether you want to sell gold and receive a check payment into your account.
• Tax Benefits: Gold or precious metal IRAs have the same tax benefits as traditional IRAs. There are certain rules and regulations that you need to follow to include precious metals in your IRA, which you should check with you IRA Company.
Once you have decided that you want to include precious metals in your IRA plan, you should determine factors such as how much you want to invest, your personal income goals, your retirement plans, your age, total assets and tolerance for risk.
What Precious Metals are Eligible for IRAs?
At the moment, the only gold coins that are approved for IRAs are American Gold Eagles. All other gold coins must be 99.5% pure and should be legal tender coins to qualify for IRA investments.
On the approved gold coin list are Canadian Gold Maple Leafs, Credit Suisse gold coins, Austrian Philharmonics, Australian Kangaroo gold nugget coins and Perth Mint’s Lunar Series coins. Minimum .995 fine gold bars are also approved, subject to regulatory approvals.
The only silver coins that are approved for IRAs are American Silver Eagles. There is a .999 clause for silver coins to be eligible for IRAs. Approved silver coins are the Mexican Libertads, Canadian Silver Maple Leafs, and Australian Kookaburras. Silver bullion bars may also be accepted as long as they meet the necessary regulatory criteria.
Platinum coins are also eligible for IRA investments. Some of the accepted ones are American Eagle Platinum bullion coins, along with minimum .9995 fine platinum coins such as the Isle of Man Cat, Isle of Man Noble, Canadian Maple Leaf, and the Australian Koala. Platinum bars are also accepted as long as they have all the regulatory approvals.
A precious metals IRA is a wonderful vehicle for building a retirement asset. It is exempt from taxes, which can result in tremendous savings over the length of your investment.
By diversifying your investment portfolio with precious metals, you are taking out an insurance policy against inflation, volatile stock markets and failing economies. And, finally, you will be able to lead a happy life of retirement.