When the Dow drops 1,000 points in a day and continues its slide we see a wave of investors start to embrace alternative investments. When it comes to the volatile stock market in recent weeks, the solution isn’t to stop investing and move money to liquid savings or hide gold coins under the sofa. A precious metals IRA gives many investors peace of mind as they navigate the unpredictable terrain. For a truly diversified portfolio, include precious metals in your self-directed IRA. The first step is to open up a self-directed IRA by funding it with cash or rolling money over from a Traditional IRA, Roth IRA or 401(k). While owning stocks leaves people feeling insecure during a bear market, precious metals are tangible and real with more predictable returns. Many economists believe the recent stock market correction is just the beginning of a switch from a secular bull market to a bear market. For the past 6 years, stocks have been up. Instead of observing your 401(k) or other portfolio shrink, talk to an approved IRA LLC facilitator about how you can secure your retirement with a precious metals IRA.
Beating the declining dollar
One reason investors like a precious metals IRA is because of the way the value of the dollar declines in purchasing power. Some speculate the Federal Reserves bond buying program compromised the power of the U.S. dollar. No one knows for sure the future of the dollar, but nobody is arguing that physical bullion won’t survive.
Taking physical possession of your metals
In many cases, you can take physical possession of your precious metals or bullion in a precious metals IRA. During a stock market crash or major catastrophic event, you could take security in having a physical currency. Some of the different precious metals to consider for your portfolio include silver, gold, palladium and platinum bullion. You may never need to take possession of your precious metals, but it is nice to know you could do so. Also, you decide where you want the physical bullion stored.
Knowing what’s allowed
When you own a self-directed IRA, you need to adhere to the IRS regulated guidelines. American Eagles don’t have storage requirements so that is a popular choice with self-directed IRA investors. You can’t include collectible coins. On the other hand, you can legally hold gold in the form of U.S. Buffalo Bullion coins or Australian Kangaroo/Nugget coins. For silver, you can own Canadian Maple Leaf coins and Mexican Libertad. Some options for platinum investments include Australian Koala coins and American Eagle coins. Some of the precious metals not allowed in a self-directed IRA are Hungarian 100 Korona, Swiss 20 Franc, Mexican 50 Peso, Italian 20 Lira, Belgian 20 Franc, Chilean 100 Peso, South African Krugerrand, British Britannia and U.S. Liberty.
Although investing in precious metals is a smart approach to diversify a portfolio, many investors don’t own gold or silver. One decision you need to make is whether you rather own physical gold, silver or other precious metal. When you manage your own retirement account with a self-directed IRA, you control your situation. With a bear market on the horizon and the U.S. dollar’s devaluation, you could consider moving into tangible metal such as gold and silver bullion coins or bars.
At New Standard IRA, we help our clients adhere to the IRS rules alterative investments in a self-directed IRA. We can help you set up an account to invest in everything from precious metals to venture capital investing, from turnkey real estate properties to private lending, and everywhere in between. For more information on a precious metals IRA and how to protect yourself during a stock market crash, please contact us.