You are probably familiar with the idea of a traditional (or Roth) IRA, or individual retirement account. These accounts help people plan their financial futures for post-retirement. The type of IRA you choose depends on your financial goals and your own specific financial circumstances.
Precious metal IRAs are a specific type of self-directed IRA account in which you invest in precious metals. Self-directed IRAs are a part of the Employee Retirement Income Security Act of 1974 (ERISA), and have become popular over the years as another way for investors to diversify their financial portfolios.
Here is some information about precious metal IRAs in Scottsdale, AZ and how they work.
Setting up a precious metal IRA
There are several steps involved with setting up a precious metal IRA. Here’s a brief overview:
- Determine if you’re setting up a new account or transferring an existing one: You can either begin a brand new IRA for your precious metals, or transfer an existing IRA or retirement account to use as a self-directed precious metal IRA.
- Choose the account custodian: Self-directed IRAs are held by trust companies or custodians, which act on behalf of the account. Responsibilities of the custodian include setting up the account, developing account statements and accepting any and all allowed contributions. Precious metals dealers often have custodians they can recommend, so it’s a good idea to choose your precious metal dealer carefully as well.
- Decide what products you will purchase: Not all bullion products are eligible to be placed into an IRA account, so it’s important to do your research ahead of time. Products that are eligible to be held in such accounts include gold and silver American Eagles, Canadian Maple Leafs and Philharmonics, as well as Australian Kangaroos, gold American Buffalos, silver Mexican Libertad coins and silver Australian Kookaburras. You can also purchase gold and silver rounds and bars of a certain fineness, as well as some platinum and palladium products.
- Choose a depository: Any precious metals you will place in an IRA must be stored in an approved depository—they cannot be held personally by you, the account holder. IRA custodians and precious metal dealers will often be able to recommend approved depositories for you, but the final choice of where the metals will be stored is yours.
- Make the purchase: Once you have completed all of the other tasks, you can begin purchasing precious metals. Your IRA custodian will handle the transaction on your behalf, and your chosen precious metals dealer will then ship those metals to your depository.
It is a relatively easy process to set up and use a precious metal IRA, but most people simply aren’t aware that it is an option they can employ as part of their retirement savings. Therefore, if you have any questions about establishing a precious metal IRA in Scottsdale, AZ, we encourage you to contact the team at Gold Wealth Financial today and we will be happy to provide you with further information.
Categorised in: Precious Metal IRAs