An IRA is an individual retirement account. There are different types of IRA accounts available to people based on their goals and objectives. Some people may invest in an IRA account on a tax-deferred basis while others may invest in a Roth IRA on an after-tax basis. What type of IRA one should use depends on their specific circumstances and goals. This is an issue that is best discussed with one’s CPA or tax advisor.
In addition to the IRA type, there are also differences in what types of investments the IRA can hold. When the majority of people think of an IRA account, they likely think of an account that simply holds stocks, mutual funds, bonds and the like. It seems that many people out there are not aware of what they can do with a self-directed IRA. A self-directed IRA gives an investor the freedom to decide what to invest in. This is in contrast to most standard IRA accounts in which the investment types are limited. Many people, for example, are not aware that a self-directed IRA account gives them the ability to invest in alternative asset classes such as precious metals, futures, limited partnerships, commercial paper or real-estate.
Self-directed IRAs have been around since 1975 and are part of the Employee Retirement Income Security Act of 1974, commonly referred to as ERISA. Since their inception, self-directed IRA accounts have grown in popularity as investors look for additional ways to diversify their portfolios. More and more investors, it seems, are looking to branch out beyond the traditional stocks and bonds portfolio, and a self-directed IRA account can potentially provide them with a vehicle to do so.
The term precious metals IRA simply refers to a self-directed IRA account that invests in precious metals. It is worth noting, however, that savers can also invest in other assets besides precious metals. In fact, one of the nice things about a self-directed IRA account is the fact that an investor may hold their traditional stock and bond investments in it while adding other alternative asset classes. This offers investors a great deal of flexibility.
Setting up a precious metals IRA is a relatively simple process but there are some necessary steps involved. Here we will outline some of the necessary steps as a guide.
Once an investor’s account is established and their metals have been purchased, the custodian will provide them with periodic account statements detailing their holdings and the bid or wholesale value of those holdings.
A precious metals IRA owner may liquidate his or her metals at any time. A precious metals IRA account also gives the account holder the option of taking required minimum distributions in the form of bullion.
Setting up a precious metals IRA account has never been easier. The process is streamlined and an investor can have precious metals within their self-directed IRA account in a matter of days or weeks. Be sure to check out the JM Bullion IRA page to sign up today.
Any questions regarding required minimum distributions, account liquidation or other issues regarding a precious metals IRA should be directed to one’s CPA or tax professional. Investors should consult their CPA or tax professional prior to investing.