You have probably heard that it’s always a wise idea to diversify your portfolio. Did you know that you can do this by making a silver IRA investment? When you purchase certain precious metals such as silver, gold or platinum, you can put them in a self-directed IRA and hold your precious metals in a safe at home or with a third-party. This protects your wealth in an account that has tax advantages.
Starting Your Silver IRA Investment
To begin investing precious metals such as silver and gold into a self-directed IRA, you need to make sure you meet the requirements and then open one. This allows you to buy specific types of precious metals, which are eligible for this type of investment. Each coin or bar that is invested must meet a specific purity or fineness requirement as dictated by the Internal Revenue Service. This requirement helps ensure that the investment is suitable for leveraging the tax benefits that are provided by utilizing an IRA account.
Funding Your Account
Once you have opened a self-directed IRA, you need to fund your account. If you’re rolling over an existing account, this makes it easy. Otherwise, you’ll need to add no more than the maximum amount allowed by IRS guidelines. Once you’ve had your account funded, you can work with a custodian and purchase specific types of precious metals that are being offered near current spot prices.
Making A Purchase for Your Silver IRA Investment
After your IRA account has been funded, you’ll be able to purchase the eligible precious metals that are suitable for this type of account. This may include silver American Eagle coins and silver Canadian Maple Leaf coins. With this type of investment, you’ll be able to hedge against downturns in the stock market or economy. It’s also a way to fight the negative effects of inflation as precious metals tend to do well during time frames when inflation is increasing.
