How To Add Precious Metals To Your IRA
Whether your retirement is 4 years away or 40 years away, it's never too late to take action to secure your financial future. An individual retirement account (IRA) is one of the most valuable tools savers have to prepare for their retirement. Not only are IRA contributions frequently tax-deductible, but your contributions and earnings are able to grow tax-deferred until your retirement.
Within your IRA, you have the option to direct your investments into holdings that meet your personal preferences and financial goals. One potential holding option for your IRA is precious metals, like gold and silver. When you invest in precious metals, you're diversifying your IRA investments and taking steps to hedge your savings against inflation. Keep reading for more info about how you can add precious metals to your IRA.
Decide How You Want to Hold Precious Metals
You have multiple alternatives for holding precious metals in your IRA. It's important to contemplate how you want to hold your precious metals so that you can find the right IRA for your needs.
One option is to invest in a fund that includes some type of precious metal holdings. These funds may invest in the mining or discovery of precious metals, or they might invest in the metals themselves. Make sure you thoroughly research potential funds to ensure it's exactly what you want to add to your IRA.
It's also possible to purchase actual precious metals (like bars of gold bullion or silver coins) within your IRA. Some IRAs even allow you to withdraw the precious metals themselves when it's time to begin taking distributions (rather than having to sell the metals to receive your money).
To purchase the actual precious metals, you'll need to open an IRA with a brokerage firm that offers this privilege. The custodian of your IRA will handle the transaction details to buy the metals and assist you with storing the metals.
Select a Storage Solution for Your Precious Metals
You're not allowed to take physical possession of your precious metals until you withdraw them from your IRA. Instead, you need to store the metals at a national storage depository or have your IRA custodian store the metals for you. Both options are permissible, and which selection you choose depends on your preferences.
Some IRA custodians don't offer storage services for precious metals. If you prefer that your precious metals be stored locally or want someone that you know handling all aspects of the storage process, you'll need to search for a firm that offers this specific service. To learn more, contact your local precious metals IRA professionals.