Benefits of Owning Precious Metals in Your Self-Directed IRA
If you’re thinking about alternative ways to invest in your financial future, you may want to consider adding precious metals to your self-directed IRA portfolio. Below are the top five benefits of precious metal ownership within your self-directed IRA.
1. Tax Advantage
Like many alternative investment options, precious metals receive tax benefits in a self-directed IRA. Precious metals owned in a traditional self-directed IRA receive tax-deferred treatment. That means you don’t have to pay taxes until you receive a distribution from the IRA.
2. Growth Potential
One of the reasons precious metals are such a popular option among self-directed investors is because of their relatively low volatility compared to stocks, bonds, and mutual funds. While traditional investment options tend to lose money when the economy is in a slump, the price of precious metals tends to increase during these times as investors rush to secure their funds.
3. Flexible & Easy to Liquidate
Unlike other investments in your asset mix, the precious metals in your self-directed IRA are easily liquidated when funds are needed. Because it is a physical asset, it’s much easier to unload precious metals than other investment options such as stocks, bonds, and mutual funds. If you’re interested in diverting funds elsewhere, simply sell your precious metals and utilize those funds in your self-directed IRA for your next investment. This flexibility is extremely attractive to alternative investors looking for flexibility in their long-term investment strategy.
4. Low Volatility
It’s called the gold standard for a reason – precious metals tend to hold their value over the long haul. Like other investments, the value of precious metals does fluctuate, but it fluctuates much less than traditional investments such as real estate, stocks, and mutual funds. While housing markets can crash and even the most stable companies can go out of business over a scandal, your gold, silver, palladium, and platinum will retain its value.
If you’re seeking an investment option which is truly an alternative to traditional investments, precious metals are certainly high on the list. Having a healthy portfolio mix is key to surviving the ups and downs of the economy through your working years and well into retirement. The sustained value and flexibility of precious metal investments make them an excellent option for both new and experienced investors.
To learn more about investing in precious metals with your self-directed IRA, contact the team at iPlanGroup today.