When you think about creating an individual retirement account (IRA), you probably think about stocks, bonds, mutual funds and similar paper-based investments. However, savvy investors are starting to rollover their existing paper-based IRAs into silver IRAs. This means that their IRA is stocked with physical silver in the form of silver bars, silver coins and other bullion.
Now, there are a couple good reasons for investing in a silver IRA, including:
- A silver IRA isn’t tied to a specific currency. If there’s a currency crisis, precious metals tend to be safe. Your silver IRA isn’t tied to any one currency, so your silver bars and coins hold their value.
- A silver IRA doesn’t tank because of corruption or bad business practices. When you invest in stocks or the like, you’re entrusting your money into the hands of humans. All it takes is one corrupt accountant, one bad business model or one big mistake to cause a company to go bankrupt (meaning you’ll lose your investment). A silver IRA is safer because your silver bars and coins don’t gain or lose value based on a company’s performance.
- A silver IRA is easily liquidated. Silver bars and coins hold value all over the world, and they have done so for thousands of years. Thus you can rest assured that your silver IRA can be converted into cash when the time comes.
You can see why so many investors are stocking their silver IRAs with real silver bars and silver coins. And maybe you’re thinking about opening your own silver IRA too. If so, here are a few things you need to know…
Choose Between a Silver IRA or Silver Roth IRA
A traditional IRA allows you to make tax-deductible contributions into your silver IRA today, but you will be taxed when you start withdrawing from your silver IRA in the future. On the other hand, a Roth IRA allows you to make after-tax contributions today so that your withdrawals aren’t taxed in the future. The choice is yours, though a silver Roth IRA does protect you against higher tax rates in the future.
Understand the Silver IRA Rules
Because you’re dealing with real silver bars, coins and other bullion, the silver IRA has different rules than a paper-based IRA. Specifically:
- Silver bars, coins and bullions must be 99.9% pure.
- Only certain silver bars and coins are accepted into a silver IRA, including the American Silver Eagle, the Canadian Maple Leaf, the Austrian Philharmonic, the 10 oz Credit Suisse bar and similar silver bars.
- Your existing silver bars and coins aren’t eligible. In addition, you cannot hold your silver investments in your own vault or a safe deposit box. Instead, they need to go into a trusted repository.
Talk to a Silver IRA Specialist
If you’re ready to set up your silver IRA, then you’ll need to create a self-directed IRA. You’ll then choose your investments, and instruct your trustee to fund your silver IRA with 57Gold.
If you’d like to learn more about opening up a silver IRA, give us a call today at 1.888.950.4653 – one of our silver IRA specialists will be glad to walk you through the steps and help you get started with the paperwork!