If you’re interested in diversifying your portfolio, think about investing in precious metals. Owning physical precious metals inside an IRA is an excellent way to preserve and potentially even grow your retirement wealth. There are two different IRAs for doing this: a Depository IRA and a Home Delivery IRA.
Let’s see what the best option is for you:
Depository IRAs have state-of-the-art security and are 100% insured by Loyd’s of London.
Through a quick, simple process, your existing retirement account is converted to a special IRA that can legally hold precious metals. A qualified custodian, like Kingdom Trust, will administer your IRA — e.g. handle asset purchases and liquidations — but you retain 100% control of the investments in your account.
Your IRA-held metals are stored in a top-tier depository facility with state-of-the-art security, and they’re fully insured. Clear documentation is kept to verify ownership of each piece of metal in your account, and you can visit the depository whenever you would like to see your metals in person.
Additionally, your metals are not included in the depository’s balance sheet. So in the unlikely event of a depository failure, your metals are never at risk of being seized in bankruptcy proceedings.
On the other hand, Home Delivery IRAs are shipped to you, with metals being stored in an approved facility.
If privacy and accessibility are your top priorities, this option is ideal. Here’s how it works:
1) Set Up a Self-Directed IRA: This first step is the same as for depository IRAs. You’ll open a new special IRA account that can legally hold precious metals and other non-traditional assets. Once created, you can convert assets from your existing retirement account with zero tax penalties or fees.
2) Create an LLC: To legally store metals outside a depository, you must create an LLC that will take legal ownership of the metals. Your LLC can store metals in any IRS-approved facility, such as a safety deposit box at your bank. Your IRA alone is prohibited from owning and storing metals that way directly (depository must be used), but the next step alleviates this problem.
3) Buy All Shares of Your LLC Using IRA Funds: Because your metals are owned by your LLC, they can legally be stored outside a depository (some metals can even be stored inside your home). But since the LLC will be owned by your IRA, the metals are still under the umbrella of your retirement account.
4) Purchase Your Metals Investments: You’ll accept delivery of your metals at home and store them at your discretion. And since the IRS only requires documentation for assets inside your IRA, your metals investments will stay totally private; the IRS will only see an investment to your LLC, not the underlying metals the LLC holds.
But wait, what about your non-retirement savings? Can you convert cash into precious metals too?
Yes, once you’ve decided a cash purchase is right for you, cash can easily be invested straight into physical gold and silver. Putting cash savings into precious metals is a simple and easy process that will protect you from inflation and a potential stock market crash.
See how you can get the most value from Gold and Silver IRAs.
Ready to learn even more or take the plunge and open a Precious Metals IRA? Call our team at (844) 824-5051.