by Craig R. Smith
When it comes to saving for retirement, slow and steady always wins. Socking away money into a qualified, tax-deferred retirement account is the secret to creating a sizable nest egg.
Given today’s elevated market risks such as; high stock prices, rising interest rates, and growing political uncertainty, more and more investors are diversifying beyond traditional stock and bond portfolios.
A self-directed IRA provides investors with a vehicle to grow wealth and defer taxes. Self-directed IRAs give investors the freedom to decide what they want to invest in such as; precious metals, futures, limited partnerships, commercial paper or real-estate.
Some may decide to invest in an IRA account on a “tax-deferred” basis, while others may invest in a Roth IRA on an “after-tax” basis. What type of IRA you qualify for depends upon your specific circumstances and goals, which should be discussed with your tax adviser.
Ever since the financial crisis of 2008 and the Great Recession, funding your IRA with precious metals has become very popular because gold and silver prices tend to rise when stocks, mutual funds and bonds decline.
If you already hold an IRA or 401(k), you have the option of rolling over or transferring funds into a gold IRA.
Setting up a precious metals IRA is easily done over the phone. Here are the six basic steps...
1. Decide if you be setting up a new IRA account or transferring an existing IRA, then complete the application. You can start a new IRA account if you do not have one already or move over an existing IRA or 401k account.
2. Choose the IRA account custodian, who will serve as your fiduciary. Their responsibilities include; IRA account setup, managing assets and accepting new contributions. We recommend GoldStar Trust Company.
3. Choose a precious metals dealer. When establishing a precious metals IRA, you may buy precious metals from the dealer of your choice. Swiss America offers low IRA set-up costs and competitive metal prices.
4. Decide with your precious metals broker what products to buy. A Swiss America broker can explain which metals products are eligible to be held in an IRA account.
5. Decide on a depository. Metals held in an IRA cannot be delivered to the account holder, they must be stored in an approved, regulated depository such as; Delaware Depository.
6. Make your purchase. Once your IRA products are chosen your metals purchase is “locked in” at the current market prices. Your custodian handles the payment and the dealer ships your metals to the depository.
Once your IRA account is established and your metals have been purchased, the custodian will provide you with periodic account statements detailing your holdings. As a precious metals IRA owner you may liquidate your metals at any time, or take any distributions “in-kind” by having the metals shipped to your home.
Setting up a precious metals IRA account before year-end is a wise move. Remember: The more you IRA, the less you IRS. Call a Swiss America broker at 800-289-2646 to discuss setting up a precious metal IRA today.