Hedging against inflation: Precious Metals investing in your IRA

When investing and planning for retirement, it is important to diversify into different asset classes in order to minimize financial risk.  One such way of “spreading the risk” in your portfolio is to include nontraditional assets as part of your investment strategy.  Many people don’t realize that other investment options exist for their IRA’s instead of just the traditional stocks, bonds, and mutual funds they are accustomed to.  One such example is investing in precious metals in order to hedge against inflation.

Benefits of Investing in Precious metals using an IRA

There are several benefits to using an IRA to purchase and hold your precious metals:

• allows for diversification into different asset classes
• no need to worry about storing your precious metals as the IRA Custodial Trust does this for you
• precious metals are tangible assets that will always have value
• allows for an increase in capital without having to pay taxes upfront for Traditional IRA’s
• after tax dollars are invested and you don’t pay taxes upon withdrawal for ROTH IRA’s

How do you purchase precious metals in an IRA?

In order to purchase precious metals in an IRA, an approved IRA Custodian or Trust Company must act as custodian due to IRS regulations.  The custodian purchases, receives, and stores your precious metals in an insured, secured vault storage facility.   The Trust company executes trades at the direction of you or your financial representative and is responsible for receiving, processing, and summarizing financial data into quarterly reports and year-end tax statements.

Examples of IRS Approved Trust and Custodial Companies:

• American Estate and Trust, LC
• Entrust Group
• Sterling Trust Company
• Prosper
• Goldstar

Step 1:  Open an IRA account

Open a self-directed IRA with any of the following companies listed below.  A Traditional IRA, Simple IRA or the Roth IRA can all be used to invest in precious metals.  If you already have a self-directed IRA, contact any of the approved Trust and Custodial companies listed in the “Examples of IRS Approved Trust and Custodial Companies” to set up a custodial agreement that will allow you to purchase precious metals in your IRA.

• Bulliondirect.com
• Kitco.com
• Goldsilver.com
• Goldmoney.com

Step 2:  Fund your Self-directed IRA

Fund your IRA from an IRA-to-IRA mode of fund transfer, rollover contributions, or annual contributions.

Step 3:  Select an IRS Approved Trust or Custodial Company

Select IRS Approved Trust or Custodial companies to actively buy, sell, and store your precious metals investment products.

Step 4:  Sign the investment agreement and know the settlement procedure

Sign the investment agreement and complete your investment instructions for the Trust or Custodial Company.  The Custodian will send a confirmation statement upon receipt of funds.

Step 5:  Purchase your precious metals within IRA

Place your gold, silver, or other precious metals order through your custodian and check the itemized invoice generated by your custodian.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.