By J.P. Dahdah, Founder & CEO of Vantage
As long as the stock market continues to show volatility, savvy investors will look for alternative, more stable, potentially better returning investments. And, Self-Directed IRA accounts provide that flexibility by allowing you to choose your investments based on what you feel is best for you. Investing in precious metals is one of the most common investment alternatives when seeking to diversify your Self-Directed IRA portfolio. But there are things to consider:
1. Not all precious metals are approved investments by the IRS. Historically the only precious metals that investors were allowed to purchase were gold and silver. However, new laws created in the late 90’s allow for other precious metals like platinum and wider varieties of gold and silver metals to be purchased. Just make sure the company that administers your Self-Directed IRA understands which precious metals can be bought, sold or traded.
2. Make sure you can access your funds. Once you have decided on which precious metals to invest in, your Self-Directed IRA account administrator can then work with you to set up the transfer of funds. This is necessary to successfully purchase and manage precious metal assets.
If you already have precious metals in your possession; you cannot simply add them as assets to your IRA account. Instead you would need to seek assistance in liquidating and placing the money that is generated as a result of the sale in your Self-Directed IRA as a contribution. Keep in mind you must have earned income to be eligible to make an IRA contribution and each type of IRA has an annual contribution limit and deadline that must be respected.
For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or ClientService@VantageIRAs.com.