Individual Retirement Accounts (IRAs) are savings accounts that help you to invest money for your retirement. IRAs are fast becoming a preferred means of securing your future because they have certain tax breaks. Most people confuse an this type of retirement account as an investment but it is not; IRAs are basically ways you store any fund, bond or stock against a rainy day i.e. retirement.
Why Silver IRA?
There are so many kinds of precious metals IRAs; there is Gold, Silver, Platinum and Palladium. However, in recent times, Silver is the one that is all the good talks and everyone seems to be rushing to get it. Earlier this year, it was found that the price of silver is increasing more rapidly than all other major commodities – gold, copper and crude oil. It is even increasing faster than US stocks! What is more interesting is that it is anticipated that the price of silver is likely to be shoring up till 2020. More on that here: http://2gov.org/gold-ira/silver/
The implication of the above information is that there is no better time for you to stock up your account with it than now!
Apart from the above, these are some other reasons you should generally save this kind of retirement savings.
- It is a good way to spread your savings portfolio yet secure your future at the same time.
- It guarantees a long-term stable growth which in the end reduces the values of stocks and bonds. You do not go through the hustle of carefully managing the account at the fear that you might lose your money if they are not looked at properly. In effect, the risks involved are very low.
- It is a comfortable way of saving since your funds increase in worth in the free market without any involvement.
- It is a tax-sheltered way to buy shares and secure your future.
- Last, it is simple to start a get one.
Things to Consider When You Want to Get It
As simple as it may be for you to start and get one, it must be done with the confines of the law. It is important that you take these considerations seriously as a defiance of any of the things listed below can cost you all you have saved and make you lose out on the great future you have planned for yourself.
- Get acquainted with all the Internal Revenue Service (IRS) requirements. There are regulations binding any financial transaction, as such I highly recommend that you know what you are venturing and understand it properly before you plunge yourself into it. It is important for you to note that there are only two types of investments that the Internal Revenue Service (IRS) prohibits; life insurance and collectibles. Even with all the freedom that there is to save in coins and bars, the IRS allows only certain types of silver coins and bars.
- In the case where you do not understand very well what the requirements are, there is always the option of talking to an expert on the matter. One of the best people you can consult before making any big decision with regards to your Silver IRA is your tax attorney. I am very sure that he or she can give you some valuable insight in the venture and offer some good counsel going forward.
- It is also very important that you scout and research some firms that can help you manage your retirement accounts like the 401k very well. As much as the transactions go, these firms – usually referred to as custodians – very directly involved in every decision you make with regards to your saving. It is therefore recommended that you look out for the best among the best to work with. As for recommendations from people who are always saving in silver IRAs and thence make your decision.
How to Invest In It
As said earlier, it is simple. If you cover all the bases stated above then the following simple steps below are the things you need to do to secure a great future for yourself post-retirement.
- The first step to getting an IRA is to set up an account. Go to a service provider and open a self-directed retirement investment immediately. There are some restrictions, however. These restrictions too depend on the providers. Some providers restrict you to bank certificates of deposits. Ask and be sure that your provider can help you to specifically purchase silver and still go into other forms of investment. Some banks are service providers. In whichever case, it is important that you choose a custodian for your account. Regardless of the duties of the custodian, you are still responsible for ensuring that all your IRA transactions are in line with Internal Revenue Service requirements.
- Look for a place to store your silver. According to the IRS rules regarding IRA, you nor your custodian is allowed to take physical possession of your silver. Therefore, you need to choose an approved depository to keep your precious metal for you.
- After the preceding, the next step is to pump money into your retirement plan. You fund your IRA by making regular contributions to the account. Mostly, the contributions are per year. As at 2012, you were required to deposit up to 5000.00 dollars per year in your account to fund the account.
- Given your contributions, you then decide on which silver bullion you want to buy with your plan. American Eagle, Australian Philharmonic, and Canadian Maple Leaf silver coins are the approved silver bullion by the Internal Revenue Service (IRS). You are also at liberty to purchase silver bars instead of coins. In this case, you must ensure that the bars meet the Internal Revenue Service’s standards for purity.
- I do not advise that you purchase the silver yourself. This is why you contracted the services of a custodian. Having decided on what you want, direct your custodian to purchase the silver with the funds you have contributed to your account. Another important thing for you to note is that the regulations of the IRS do not allow you to deposit investment assets into your account. For this reason, I advise that you deposit cash, and then allow the custodian to do the transaction on your behalf.
In conclusion, know that silver IRAs are in huge demand since the price of silver went up 50% at the beginning of this year. It is, therefore, my advice that if you want to secure a good future (retirement period) for yourself, it is the best choice for you and the time is now to get one!