What is a Silver IRA?
What are you doing to save for retirement? It seems that many Americans are struggling to build their nest egg. However, there is a simple saving solution – opening a silver backed IRA. In 1974, the US Government passed a law called the Employment Retirement Income Security Act (ERISA). This law allowed people to begin leveraging the same tax benefits of traditional retirement accounts in the form of an Individual Retirement Account. This program expanded to allow individuals to invest in non-traditional investments such as real estate, bonds, private companies, and precious metals. Silver is a monetary metal and when included in a retirement savings portfolio, can help diversify your retirement portfolio. A long-term strategy for securing a financial safety net, a silver backed IRA can protect against the inevitable market downturns. Contributing to an account or rolling over your existing 401(k) into a silver IRA will enable you to have the reassurance that your future retirement is stable even in a volatile market. Our experts are ready to help secure your financial future today. Just give us a call.
Why Silver?
Some people ask the question, “What is a better investment, gold or silver?”. While gold appeals to many precious metals investors due to its illustrious status symbol throughout history, they may overlook another equally important metal: silver. While the price of precious metals tends to generally behave the same in relation to the market, history has shown that there are times when silver is a better investment than gold. When people think of investing in precious metals, they immediately want to look at gold for its appeal, but as an investor you should seriously consider silver as an investment.
While gold has a majority of its demand in jewelry and consumer products, silver is widely used in industrial applications, electronics, medicine/dentistry as well as in jewelry. In fact, the global supply of silver is diminishing – There is 200 times more gold available than silver despite gold being a much higher price. The explosion of smart electronic devices such as laptops, cell phones, touch screens , etc. in the 21st century has led to an increasing demand for the metal. The number of smartphone users in the world is expected to reach 6.1 billion by 2020. Silver is an essential component of each of these. With an increasing demand and a shrinking supply of the metal, many are predicting the price of silver will skyrocket over the next few year.
While gold is primarily used in consumer jewelry, silver is widely used in industrial applications and electronics
Examples of accepted silver coins include:
Similar to gold, in order to meet the strict guidelines set by the IRS, the silver in your IRA must have a fineness of .999. Your silver must also be held by a custodian in an approved facility and you cannot add silver that you already own. Our most popular choices include:
Britannia Lunar Year of the Rooster (Royal Mint) – A Goldco Exclusive
Australian Saltwater Crocodile (Perth Mint) – A Goldco Exclusive
20th Anniversary Britannia w/ Edge Lettering (Royal Mint) – A Goldco Exclusive
2017 Silver Lucky Dragon (Royal Canadian Mint) – A Goldco Exclusive
See the full list at our IRA Approved Silver page.
Getting Started
Putting all of your retirement funds into stocks and bonds is a very risky thing to do. In fact, it is something that every experienced investor will avoid doing because, after all, investing 100% of your portfolio in paper backed assets such as stocks and mutual funds leaves you vulnerable to market volatility. Building a nest egg for a comfortable retirement requires a diversification strategy with a combination of not only stocks and mutual funds, but also physical assets like silver to protect against any sort of market correction. If you are caught off guard, a drop in the market can delay your retirement by years!
Even if you are already contributing to a savings plan, such as a 401(k), you can also have a silver IRA. Otherwise known as a “self-directed IRA”, a silver IRA can be relied on as a hedge from stock market threats. What’s more, you can diversify your portfolio gold, platinum, palladium for balance.
Let’s learn more about how to get started:
- The first step is to contact Goldco today and start the process. Together, we will complete the documents to set up your account and transfer or rollover funds from your existing IRA, 401k, or other employer sponsored plan to open the account.
- The next step is to send back your completed paperwork and let Goldco go to work for you.
- We will open your account and process the necessary documents to transfer the funds to your existing account without having to worry about paying taxes or early withdrawal penalties. Once your account is open, your representative will then be able to help you make informed decisions regarding the precious metals you should invest in. The entire process usually takes about 2-3 weeks.
Every individual retirement account has a particular set of rules, and a silver IRA is no exception. Nevertheless, the rules are pretty much the same as they are for a conventional IRA. The only real difference is the type of investment held inside the IRA. Standards set by the IRS are somewhat strict and must be adhered to if you are to invest legally. Once an application has been filled out, a custodian must be selected to manage and oversee the account. A depository will be chosen for the storage of the silver assets, of which must be on the list of pre-approved products. To avoid potential problems, read the latest IRS Publication 590 information.
Looking to put gold into your IRA? Check out our Gold IRA page for more information
