A precious metals IRA, also known as a Metals IRA, is essentially a self-directed IRA holding physical coins and bars. A Metals IRA can be opened with an accredited custodian that allows physical gold bullion investments. When opening a precious metals IRA, once can either fund it by rolling over a previous retirement account (e.g. a SEP, 401k, 403b or others) or transferring funds from another retirement vehicle. One can also write a check or transfer money from a bank account to fund their Metals IRA. Converting part of your retirement savings to gold (and other precious metals) can reduce the volatility of your overall retirement portfolio. Historically, gold has moved opposite to the direction of stocks, bonds, real estate and mutual funds. Regardless of your traditional investment preferences, tangible assets like gold and silver can help make the profitability and safety of your retirement portfolio far more attainable while mitigating risks from uncertain geopolitical landscapes. Including gold within an existing portfolio could improve investment performance by either increasing returns without increasing risk, or by reducing risk without adversely affecting returns. Get your free Gold investment Kit here
BENEFITS OF PRECIOUS METALS IRA
Diversification is rule number one when it comes to protecting and growing your wealth, and it’s the most compelling reason to include precious metals as part of your retirement strategy. Physical gold and silver can offer protection against market fluctuations and stock market shocks by helping you create a strategically balanced portfolio.
For many investors, holding a portion of their savings in physical gold and silver is like taking out an insurance policy on their retirement. Since gold and silver were first discovered tens of thousands of years ago, they’ve held a strong purchasing power and value. The same cannot be said for paper assets. Consider this scenario: if a company goes out of business, its stock could potentially be worth zero and if you held a large portion of this stock, you could be left with nothing. Physical gold and silver, on the other hand, have never been valued at “zero” and can never “go out of business.”
Self-Directed Precious Metals IRAs are self-directed, which means you, the investor, are in control of the asset allocation. You’re not restricted to only holding traditional assets such as publicly traded stocks and bonds, mutual funds, or treasury notes. You can hold all types of assets in your Precious Metals IRA, such as cryptocurrencies like Bitcoin or Ethereum, oil & gas, commercial real estate and other alternative assets that are not allowed in traditional 401ks and IRAs.
#4. GROWTH POTENTIAL
Conventional IRA vehicles are largely dependent upon the performance of a select group of stocks, bonds, and mutual funds, which are inextricably tied to the state of the economy. When the economy suffers, so can many IRA accounts. The economic factors that weaken stocks, bonds, and cash may increase the profit potential of precious metals, as safe haven demand for gold and silver has proven to increase during turbulent economic times.
#5. TAX ADVANTAGES
Self-Directed Precious Metals IRAs generally receive the same great tax benefits as conventional IRAs. Depending on your tax bracket, contributions to your Self-Directed Precious Metals IRA may be claimed as tax-deductible. Like all IRA holdings, writes the Journal of Accountancy, gains from gold sold within an IRA are not taxed until cash is distributed to the taxpayer, with distributions being taxed at the taxpayer’s marginal tax rate. While highlighting the opportunities for gold owners to increase their after-tax returns via an IRA, the Journal also compared two hypothetical taxpayers, finding a “significantly higher after-tax rate of return for any form of gold” held in an IRA, rather than in a brokerage account.
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Source of Article:- Regal Assets Wealth Partners