Silver is a precious metal that has been used in the past as money. Many wealthy families invest their wealth into silver and other precious metals, to preserve it as silver always held its value and it was considered as good as money. Nowadays, investing in a silver IRA is a must. In this article, I will show you how to invest in a silver IRA.
How to Invest in a Silver IRA
What is Silver IRA?
A silver IRA is an individual retirement account, an account that functions the same way as a regular IRA account however, instead of holding paper assets, it holds physical bullion coins or bars.
Why Invest in a Silver IRA?
There are several reasons to include silver in an IRA account, some of them are:
- To protect and preserve wealth from unexpected events. Covid-19 is the best example here.
- A hedge when the stock market is not expected to do well. For several months there has been a stock market downturn. Thus, most investors have seen their life savings decimated. However, those who had their savings invested in silver and other precious metals, are walking the streets with a big smile on their faces.
- Portfolio diversification. It is not prudent to put all eggs into one basket. A smart investor always spreads his/her savings into different types of investments that are not connected. (Bonds, real estate, stocks, precious metals, and so on.)
- The weak dollar. I am afraid the dollar will continue to lose strength. Although the decision by the government to print trillions of dollars is the right decision, it will ultimately cripple the dollar’s price.
- Loss of confidence in central banks. Over the years governments and dirty politicians manipulated central bank policies. In addition, central bankers just watched them without doing anything about it.
- Geopolitical uncertainty. (Middle East, Brexit, ISIS, North Korea, Hong Kong.) Even though ISIS has lost ground, it is still around. The middle East is in turmoil, North Korea has started creating trouble again, Brexit is postponed and in Hong Kong, the conflict is back.
- The US-China trade war. The US-China trade war is not over yet. In fact, it is turning out to be a financial war between the two superpowers
- Silver has never lost its value due to war, mismanagement, corruption, theft, inflation, and economic and financial crisis, while stocks have.
- Silver is a tangible asset that can be converted to cash easily.
- Low or negative interest rates. Most central banks around the world have adopted a negative interest rate policy. That means, your dollar is losing value every single day.
Steps Needed to Invest in a Silver IRA
1-Set Financial Goals for Your Future
It is important for all of us to establish financial goals for our retirement. In my case, am not willing to restrain myself in a lifestyle totally depending on welfare or a small pension. Nobody wants that.
To plan for the future you need to know where you are today, where you want to be, how you are going to get there, and how much is going to cost you. Nothing is free in life.
Your retirement plans could change over time, as your income and knowledge grow. Thus, your plans will need to be flexible in order to adapt to these changes.
2- Choose Between a Rollover, a Transfer, or a Fresh Start.
Once you’ve established your retirement goals, you will have to decide what is better for you. A fund transfer, a fund rollover, or a fresh start with an entirely new Self Directed IRA account.
A rollover is when the money is moved from the current IRA account, perhaps to an account that offers more benefits security, and flexibility, is paid directly to you and you will have to deposit the money in the account that you want. Be cautious there, you will have two months to transfer the funds otherwise your funds will be taxed by the IRS.
A transfer is when the custodian transfers the money directly to the new custodian. In this case, you never see the money and there is no reason for the IRS to tax you as the funds are never made payable to you.
A new Self Directed IRA is also another option. You do not have to close your existing IRA account. In fact, the IRS allows for several IRA accounts as long as your combined contributions do not exceed the annual limit set by the IRS. The process is fast and easy, and your IRA Account specialist will be there to help you every step of the way.
3-Find a Custodian
To have your funds invested in physical silver or other precious metals, the IRS requires opening an account with an approved custodian. Therefore, you will have to make your own research to find and choose which custodian you want to deal with.
This could be a headache for the ordinary folk but, companies such as Regal Assets are already dealing with the most reputable custodians and can actually take care of that on your behalf. They will actually set up your IRA account and coordinate with your current custodian to transfer the funds.
4-Safe Bullion Storage
According to IRS regulations, you cannot store your IRA precious metals bullion at home. It must be stored in a reputable precious metals storage facility. A precious metals storage facility or depository is a third party that specializes in precious metal security. You can always visit to see and hold your assets at the depository, but as long as they are held in the IRA you cannot take them home.
Regal Assets will organize the discreet transfer and safekeeping of your silver IRA in a depository on your behalf. In fact, Regal Assets’ partnership with Brinks will offer you segregated storage in several depositories in North America and Singapore.
5-Relax Your Savings are Safe
Once the whole process is finalized you will not have to worry about geopolitical uncertainties, trade wars, financial turmoil, or even the price of the dollar. In addition, a self-directed IRA gives you the flexibility to continue investing in other areas such as real estate or stocks.
Traps to Avoid
When searching for how to invest in a silver IRA you should be cautious. Every time there is an issue that involves your hard-earned money, you must be diligent. Fortunately, when it comes to IRA investing, the rules and regulations set by the IRS are strict and there is little room left for any mishaps.
Nonetheless, there have been cases where investors were scammed or cases where due to mistakes, cost investors a great deal of money.
1-Not all silver coins are IRS-approved for an IRA account. If you happen to purchase the wrong precious metals coins your IRS account will not be valid. You will have to sell them back and then purchase the IRS-approved coins. In the end, this will cost the investor money. To see what coins are approved by the IRS press here.
2-A rollover situation could also cost the investor a great deal of money if he/she takes over the two months limit to place the funds in the new IRA account. In that case, the IRS will impose taxes on the funds which the investor will have to pay.
3-Overpriced costs. The investor should check charges such as storage fees, shipping costs, administrative fees, and storage conditions. Some companies have a high fee policy for no particular reason whatsoever. There could be annual storage and administration fees and huge shipping costs. These annual fees vary from broker to broker but, they all add up year after year.
The easiest way to avoid traps is to deal with a reputable silver IRA broker. A broker who’s been around for a number of years with tons of experience has earned the respect and trust of its clients.
How to Choose the Right Precious Metals IRA Company
When it comes to choosing the right precious metals IRA company one must consider the following:
1-Check out the comments regarding the firm, especially the complaints, and see how these complaints were handled. If there is a long list of complaints, that will be a sign to worry about. Also, look at the number of years the company operates, you want ten years of solid record. Finally, most important is to choose a firm with a commitment to keeping you informed. Keeping you informed now and in the future. If a salesperson gives you short shrift or hits you with a high sales pitch, consider this bad news.
If you are seeking peace of mind, security, and protection from unexpected events then a silver IRA could be the solution. Keep in mind the stock-market downturn that has cost trillions of dollars in the last few months.
I hope my how to invest in a silver IRA post has been useful to you. If you still have any questions feel free to let me know in the comment section.
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8 Replies to “How to Invest in a Silver IRA”
Oh, this is one that I have never heard of before, and seriously, I find it rather fascinating that there is anything like silver it’s. I like the fact that you can tell me something like this and that I can work with it too. I would definitely look into putting my money into silver ira. Seems like some good investment.
Precious metals IRA’s with gold and silver offer stability and will safeguard your savings when times are bad. Thanks for taking the time to comment on my site.
It has been a notable fact that Investing in valuable metals and stones is very good for someone who has managed to save enough without having to worry about how bad it can get I mean market-wise, gold and silver never depreciate which makes it nice to deal with it. It is good to have this.
Precious metals have always been the tool to safeguard the savings of a lifetime during difficult times. Gold is renowned for its ability to hold its value and that is the reason investors call it the safe heaven.
This is a most informative article and I never realized that so much could go wrong if you don’t know what you are doing when investing in a Silver IRA. Picking the right company to go through is key.
I am still a little scared to do these types of investments, especially online. Do you think maybe it is best to speak to your financial advisor first before undertaking something like this, especially if you wish to invest a large amount?
With any type of investment, my recommendation for all investors is first to go ahead and do their own research. We are talking about the hard-earned savings of a lifetime. The next step will be to talk to a financial advisor. Then, the investors will have enough information to make up their minds on what is best for them.
Hello and thank you for posting this article! I have always been curious about investing in precious metals. I was not aware of the fact that you cannot store your precious metals at home. Why is that? I understand the security of having a custodian, but if you truly own the metals, why can you not store them yourself?
Hi Tom and thank you for taking the time to write a comment. When one person buys precious metals (silver, gold, and so on) he has the right to store them at home. However, when investing in a precious metals IRA the IRS requires a custodian. Without a custodian, there cannot be a precious metals IRA investment.