Add A Precious Metals IRA to Your Portfolio

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Pensions, incomes, and cost of living adjustments to Social Security are falling far behind the actual cost of living. Meanwhile gold keeps pace, and often outperforms, the cost of living year over year. Having the ability to sell physical gold for additional income will allow you to pay for the goods and services whose prices have risen, but have risen less than gold’s price.

Therefore, instead of fixating on a certain number of depreciating dollars in a bank account, or stock and bond portfolio, focus on accumulating ounces of gold to secure your retirement. Physical gold will provide guaranteed income in a way that counters currency depreciation and stock market volatility.

At ICA, we love educating and guiding our clients through the entire process of precious metals investing—including retirement and building a secure IRA.

Precious Metals investing and retirement go hand in hand.

Culturally, retirement is a highly anticipated, yet vulnerable season of our career and working life. Although visions of golf, sports cars, and travel are stereotypically associated with this time, for many, retirement simply means having the option and ability to enjoy all the things you’ve worked hard to build your entire life: time with family and friends, comfortable living, and being able to give back—charity, future investments, and volunteer work.

Whatever retirement means to you, strategic saving and careful planning today offers you the extra advantage of a safety net in the next chapter of your life. Bolstering your IRA with precious metals can help expand and enhance your golden years.

What is an IRA?

An Individual Retirement Account (IRA) is a type of savings account designed to help you save for retirement and it offers many tax advantages.

There are two primary types of IRAs: Roth and Traditional IRAs.

Roth IRAs – A retirement account from money on which you’ve already paid taxes. A Roth account is not only tax deductible, it grows tax-free. Withdrawals made in retirement are tax exempt. Roth IRAs are a good choice for individuals who have a long time until retirement.

Traditional IRAs – A retirement account from your paycheck or investments on which you have not yet paid taxes.

Contributions are tax-deductible, grow tax-deferred, and are taxed when “withdrawn” from the account. In addition, if you are self-employed, a SEP IRA (A Simplified Employee Pension Individual Retirement Arrangement) operates similarly to a Traditional IRA. SEP IRAs are adopted by business owners to provide retirement benefits for themselves and their employees. A SEP allows your business to contribute and deduct up to 25% of your (and qualifying employees’) salary to an IRA account.

precious metals ira

How Much Should You Invest?

McAlvany’s ICA has long recommended precious metals comprise a foundational one-third of your retirement savings. Precious metals offer you a historically high profit potential, and an excellent hedge against inflation, economic uncertainty, and currency depreciation.

In fact, during times of financial and economic upheaval, precious metals have been an excellent store of value, as well as high profit-yielding investments for the long haul. Making precious metals one third of your portfolio is a strategic balance to higher risk investments, as well as a long term profit play with historically solid returns in any market.

Due to the Federal Reserve’s continuous expansion of the US dollar supply and the increasing debt burdening our nation, the dollar will continue to weaken. Traditional markets will continue to be a minefield for both investors and savers. Precious metals offer wealth preservation as well as a lasting store of value.

What Sort of Return Can You Expect?

The mechanics of retirement have changed over the past few years because of greater longevity, greater demands on wealth, and unprecedented market risk. Most financial planners have assumed an annual growth environment of 8.5% yearly from stocks when planning for retirement needs.

We believe this assumption is dangerous, and point to the damage done by the “lost decade” (2000-2010) on Wall Street.

Rather than asking for returns, we believe the first question people should ask is: Will my retirement assets be there when I need them?

As unrest and insecurity grow throughout the world, there is an ever greater need for financial security. With growing instability in the U.S. and world economies, with elements of both inflation and deflation, investing in precious metals should always be a part of every portfolio.

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OVERVIEW: 6 Advantages of Adding Precious Metals to an IRA

There are multiple benefits of owning precious metals in your retirement account, including:

  1. Physical Asset. Gold is a tangible asset. (It does not represent a paper promise to pay like a bond).
  2. Flexibility & Self-Directed. You can take advantage of many compounding ounce strategies, hold a variety of metals, and no transactions can occur unless you direct them. You can also take delivery of the metals when it comes time to take a distribution out of the retirement account.
  3. Easy To Sell Or Trade. Should you choose to sell or need extra money, precious metals have high liquidity and can be sold at any time.
  4. Protection From Inflation Or Economic Turmoil. When inflation devalues paper currency, the purchasing power of Gold and Silver remains steady.
  5. Insurance Against The Unknown. Allocated precious metals are like an insurance policy for your portfolio—increasing peace of mind.
  6. Tax-Deferment Options. There is large profit potential in gold and silver, due to the current economic and monetary climate. Significant gains within an IRA allow you to defer taxes on those gains.

So should you add precious metals to your IRA?

Yes

At ICA, we recommend investors and savers transfer or rollover, or a portion, of their existing IRA or 401K into gold or silver. Or, if starting from scratch, investing a portion of your metals purchase into an IRA can be the cornerstone of your future and retirement assets.

Frequently Asked Questions

Got questions? We’re here to help.

What type of precious metals can I add to my IRA?

GOLD

American Eagle, Canadian Maple Leaf, Australian and Austrian gold coins, COMEX/NYMEX approved bars and rounds, and American Eagle Gold Proof Coins. (We often recommend Proofs as a way to hold a collectible type of coin in an IRA).

SILVER

American Eagle, Canadian Maple Leaf, Mexican Libertads, COMEX approved bars and rounds.

PLATINUM

American Eagle, Canadian Maple Leaf, Isle of Man Noble coins, NYMEX approved bars and rounds.

PALLADIUM

Bars and rounds.

Can I take custody of my IRA assets?

All IRA assets MUST remain within the custody of a Trustee of the IRA. You may take a distribution of your assets in your IRA, which is a taxable event reported to the IRS.

What is a self-directed IRA?

A self-directed IRA is exactly like any other IRA, with one major difference. YOU get to choose where your IRA funds will be invested, rather than just accepting whatever the IRA Trustee or Custodian offers.

 

How do I move my existing IRA to a new custodian so I can fund it with precious metals?

Money in an existing IRA can be moved to the new custodian by either transfer or rollover. A transfer does not require IRS reporting, and there are no restrictions on how often you can transfer funds.

 

Can I contribute bullion or coins I already own into a self-directed IRA?

No. All new contributions must be made in cash, but transfers and rollovers are allowed.

What annual fees are associated with a precious metals IRA?

There are two annual fees; a custodial fee and a metals storage fee. Call your ICA Advisor for the current fee structure.

When I qualify for a distribution, may I receive the coins instead of a check?

Yes, distributions “in-kind” are permitted; however, you will have to pay shipping in the case of delivery as well as ordinary income tax for the year in which they were received.

How safe are my physical precious metals when stored in an IRA?

The trustees we partner with are proven, trusted, and COMEX approved. The metals are insured and remain locked in the safest possible environment, and every one of your ounces is allocated.

Can I sell my precious metals in the future and transfer or rollover the proceeds into another type of IRA?

Yes. At some point in the future, you may choose to take profits on your precious metals holdings and transfer them into stocks, bonds, CDs or any other type of investment that is allowed in IRAs.

 

Why utilize ICA for my IRA?

ICA has operated with an outstanding reputation since 1972. We are one of the largest precious metals brokerage firms in the country, providing a truly unique approach through exceptional quality of products and services. We have advised on and managed IRA accounts for clients since the IRS allowed for the option in 1986. We strive to cultivate lasting relationships, anticipate the future, and respect legacy, all while serving our clients with wisdom and integrity. Your experience will be one of personal service from advisors with decades of experience. Our firm will continue to provide you an excellent education on geopolitical, monetary, and economic events.

Conclusion

The time to invest in your future is now—well before the need arises.

You wouldn’t buy shutters for a house in the middle of a hurricane. Similarly, retirement investment works in much the same way. Precious metals have a proven track record of protecting purchasing power and increasing in value over time. ICA recommends taking steps early on in your investment process.

Prepare now so you can benefit later.

If you’re interested in finding out more, connect with an ICA advisor for a complimentary consultation today. We will provide you with the simple paperwork that takes less than ten minutes to complete, and schedule a convenient time for you to provide you answers to your questions and guide you through the process.

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