Quick, what is the savvy investor’s mantra?
It’s this: diversify, diversify, diversify.
Even those who’re really keen on one type of investment know that they need to diversify their investment portfolio in order to help minimize risk. Those who favor stocks and bonds perhaps know this more than others, especially those who lost a considerable amount of wealth around 2008 when the stock market took a nose dive.
So now we have a lot of investors who’re looking at diversifying their portfolios with precious metals, such as silver bars, silver coins and other silver bullion. And there are also a lot of long-term investors who’re starting to eye the silver IRA as a possible retirement investment vehicle.
Now, if you’re unfamiliar with the term silver IRA (or silver-backed IRA), then you might be scratching your head a bit. So let me clear up any misconceptions by defining these terms…
A silver IRA (individual retirement account) is an account that’s backed by real silver such as silver bars, coins or other bullion. That means that somewhere in a trusted depository you’d have actual, tangible silver investments… hence the name silver IRA.
Just like regular “paper” IRAs (those which tend to invest in stocks, mutual funds and similar), you can open up either a silver IRA or a silver Roth IRA. Here’s the difference:
· Silver IRA: The regular silver IRA allows you to make tax-deductible contributions to your retirement. You will be taxed once you start withdrawing cash, however.
· Silver Roth IRA: The silver Roth IRA lets you contribute to your silver IRA using after-tax contributions. The benefit of this is that you won’t be taxed once you start withdrawing from your silver IRA.
Now, one question that a lot of investors ask is whether they should just purchase mining stocks for their silver IRA. While you can certainly purchase silver mining stock as part of your retirement plan, keep in mind that it’s not the same thing as having a silver-backed IRA. That’s because a mining company is still vulnerable to bankruptcy and other problems that could cause its value to drop. A true silver IRA, however, tends to hold its value (as silver bars, coins and other bullion have historically done).
If you’re interested in creating your own silver IRA, then there are a few things you should know:
· You need to set up a self-directed IRA in order to create a silver IRA. That’s because you’ll be determining what types of silver to invest in.
· You can only use approved 99.5% pure silver bars, coins and other bullion in your silver IRA, as per IRS regulations.
· You cannot use your existing silver bars, coins and other bullion to fund your silver IRA.
The good news is that we here at 57Gold can help you navigate the process of setting up your silver IRA. And better yet, we have the silver bars, coins or other bullion you need to fund your silver IRA. So give us a call today and let’s protect your future.