A Self-Directed IRA (SDIRA), sometimes called a Precious Metals IRA, allows you to use alternative assets for your retirement funds such as gold, silver, platinum, and palladium. Using an SDIRA over a traditional IRA has many benefits. And although in many ways, they work similarly to a regular IRA, there are a few key differences you should be aware of. Always talk to your financial advisor first to see if an SDIRA is a good option for your retirement plan.
Is Silver in a Self-Directed IRA a Good Investment?
Silver is often seen as a safe investment, because it has historically held its value well. Many investors believe silver is has the potential to spike upwards in value. While most investors place a mixture of gold and silver, along with platinum, into their SDIRA, there’s no law prohibiting you from owning one that contains only silver.
How They Work
A silver SDIRA requires that you actually purchase the physical assets, and then store it as part of the investment. Your custodian will manage your account and keep track of all of the assets that you include in your account. The professionals at California Gold and Silver will facilitate the purchase of these assets for your account.
Why You Should Choose an SDIRA
Precious metals, especially gold and silver, are a great option to choose as an asset for your SDIRA. There are many benefits you gain from using an SDIRA over a traditional IRA including:
- You can choose to use pretax or after-tax dollars through a special custodian or through your broker.
- The IRS allows you to purchase silver in any approved physical form to use as an investment.
- These accounts are separate from any regular IRAs you have set up.
- Silver and other precious metals act as a hedge against inflation.
- Silver and other precious metals hedge your retirement savings against market crashes.
These are just a few of the reasons choosing an SDIRA is a great way to invest in your future, and why using silver for your SDIRA is a great choice for your asset.
What Are the Risks Involved
There are some risks involved when it comes to choosing an SDIRA and investing in precious metals in general. Some things to keep in mind are:
- The price of precious metals is constantly fluctuating.
- SDIRAs often carry higher fees than regular IRAs because they require you to purchase and store physical assets.
- The IRA puts a limit on annual contributions you can make to your SDIRA.
Keep these risks in mind when you are deciding if an SDIRA is right for you. You should always talk to your financial advisor or CPA before making any decisions about your finances.
Get Started with an SDIRA
You can easily get started with your SDIRA at California Gold and Silver Exchange. Or come into our office and fill out a form to start investing in your future. Be sure to talk to your financial advisor before making any monetary decisions.