Are Precious Metals Good Investments for Self-Directed IRAs?
Are precious metals a good choice for for self-directed investors? Like any other retirement investment, it depends on the time you have between making the investment and retirement, the risk you’re willing to take, and the health of the financial markets when you invest.
That being said, precious metals might be considered one of the lower risk investment strategies and are a popular investment option for self-directed IRAs – for good reason.
It’s Called “Gold Standard” for a Reason
For thousands of years, people all over the world have held tremendous value in precious metals including gold, silver, platinum, and palladium. The strength of this value is what makes precious metals an excellent investment option for a self-directed IRA. While the markets for stocks, bonds, and real estate tend to fluctuate quite a bit, the value of precious metals tends to remain relatively steady over time.
An Excellent Long-Term Strategy
For self-directed investors who have some time before they retire, gold is a great addition to an already diverse investment portfolio. However, precious metals won’t likely be the best option for anyone thinking about getting rich quick.
Precious metals are used in a variety of technological and commercial applications including; cell phones, computers, cameras, medical devices, and much more. Because of the wide variety of applications, their demand and therefore value, can fluctuate quite a bit in the short-term.
Precious Metals Offer Diversification & Flexibility
While some alternative investment opportunities can make it difficult for you to access your money when necessary, precious metals can offer the liquidity you need while also adding diversity to your portfolio.
For example, if your self-directed IRA has a rental property which requires major repairs, your precious metals may be sold to offset the cost of those repairs. Alternatively, if you need additional funds to purchase another rental property, the precious metals can be liquidated with greater ease than selling real estate.
Are Precious Metals a Good Investment for Your Self-Directed IRA?
How does anyone go about deciding whether a particular investment opportunity is right for their portfolio? As with any retirement strategy, it starts with research. We recommend understanding the rules and regulations for IRA investments prior to attempting an investment. The rules are specific about what types of precious metals you can own in a self-directed IRA. Failing to follow the rules and regulations could result in penalties and a sizeable tax liability.
Learn More About Investing in Precious Metals
Could diversifying your portfolio with precious metals be the right option for your self-directed IRA? Check out our free guide, the Self-Directed Investors Guide for Precious Metals to learn more about the benefits of investing in precious metals for your retirement and how to get started with precious metal investing in your self-directed IRA. Then, contact the team at iPlanGroup to get started.