Investing in precious metals can be a great way to diversify your retirement portfolio and protect against inflation. With an Individual Retirement Account (IRA), you can invest in gold, silver, palladium, and platinum coins and ingots allowed by the IRS. A precious metals IRA is a self-directed IRA that allows you to invest in physical metals. However, there are certain requirements for the type of precious metals you can buy in a retirement fund and where you can store them.
It's important to do your research when selecting a brokerage firm to manage your self-directed IRA, as not all firms are equipped to do so. Additionally, there may be fees associated with transactions in precious metals, which may mean that investors take home less than the current spot price when they sell. When investing in precious metals, it's important to balance them with other investments. Fraudsters are looking to take advantage of unsuspecting investors, so it's important to investigate before investing.
If you choose the metal itself, certain criteria apply to keeping it in an IRA. In addition, once you purchase precious metals in an IRA, they must be stored in an approved warehouse. If you have a retirement plan from a previous employer or if you retire or change jobs, you can transfer funds from your employer's plans, such as a 401(k), 403(b), 457(b) or TSP plan, to a self-directed IRA to purchase precious metals. You are allowed to trade, transfer, swap, or sell your IRA's precious metals at any time without tax implications.
When choosing an accredited custodian and storage for your precious metals IRA, you can be sure of the security of your investments. To invest in precious metals through a self-directed IRA, you must establish a valid IRA and have cash available in the IRA.