Keeping your financial future secure is one of the most important goals of any successful investor. During economic uncertainty, social unrest, or worldwide crisis, owning silver as a liquid asset is a crucial component to a diversified portfolio. Historically speaking, silver has been an immensely popular precious metal. The IRS recently approved the addition of precious metals into Individual Retirement Accounts (IRAs) which means that investors can convert their paper denominated assets into 100% physical silver.
What is a Silver IRA?
A silver IRA account functions in the same exact capacity as your current IRA accounts, only instead of holding paper assets you will now be able to hold physical silver coins or bars. Many of our clients believe silver is a long-term hedge against inflation and wish to add it to their retirement portfolio. Your silver will be kept in an IRS-approved depository until you reach retirement at which time, you can have your metals shipped directly to you, or sold for cash at anytime. Once your silver IRA is opened, you still receive your statements; however, rather than being invested in mutual funds or stocks, you have physical silver coins and bars that are stored in an IRS sanctioned depository. The silver IRA rollover process is IRS-approved and 100% tax-free.
What is a Self-Directed IRA?
Investors own silver in their IRA through what is known as a Self-Directed IRA. A Self-Directed IRA gives you the power to decide exactly what you invest in. Self-Directed IRA’s allow individuals to safely own physical precious metals along with stocks, bonds, mutual funds, real estate and more in a tax-deferred account. Whether you choose Gold, Silver, Platinum or Palladium, the physical assets are safely stored in the secure and IRS-approved Delaware Depository.
A “Hassle-Free” IRA Silver Rollover
When working with American Bullion, the process of adding silver or other precious metals to your current IRA is a simple and hassle-free transaction. You can choose to transfer your entire IRA account, or a portion of it, into a new Self-Directed Silver IRA. This common practice is known as a “Direct Rollover” or a “Direct Transfer.” It is a tax-free transaction, meaning the IRS allows you to move funds out of one IRA into another IRA, free of tax penalties.
Many individuals also have old 401k accounts, or other types of retirement plans from previous employers such as 403b, 457b, Thrift Savings Plan, annuity or pension plans. These plans can be converted tax-free into a silver IRA by requesting a rollover. In most instances, one simple phone call will allow the current custodian of your former 401(K) plan to release these funds directly into your new silver IRA. To learn if your current retirement accounts are eligible, call 1-800-326-9598 to speak with a silver IRA specialist.
Which accounts can Rollover into a Silver IRA?
The silver IRA rollover is ideal for clients who currently own a Traditional, Roth, SEP, or Simple IRA account. Other types of accounts that could also be eligible for the silver IRA rollover include a 401(K), 403b, 457 Deferred Compensation Plan, Pension Plans, Thrift Savings Plans, TIAA CREF, Non-prototype IRA and Beneficiary IRA.
About the Silver IRA Rollover
When you create a silver IRA or silver 401K account, it is established as a Self-Directed IRA account. This means that a retirement account under the investor’s control is opened and has the capability of holding precious metals such as gold and silver. With a Self-Directed IRA account, you the investor have complete control of your precious metals, which are 100% real physical silver bars and coins.
Why Silver: Strong Industrial Demand
Silver has a number of properties which make it ideal for industrial applications. These properties include its strength, electrical and thermal conductivity, and ability to endure extreme temperature ranges. These properties make silver irreplaceable with less expensive alternatives. Currently, 3/4 of the worlds supply of silver is used to manufacture products including medical instruments, solar panels, microwaves, batteries, film and flat screen televisions. Even though silver is critical in technology, the ability to mine silver is limited.
Why Silver: Global Demand
Both China and India have been acquiring unprecedented amounts of silver as a viable asset. China has made silver available at local banks to encourage its citizens to purchase silver bullion. It’s industrial demand has caused silver to be viewed as a secure investment vehicle around the world.
Why Silver: Hedge against Depreciation
Adding silver into a financial portfolio or IRA acts as a hedge against paper asset depreciation. A Silver IRA or Silver 401K also provides portfolio diversification and protection of wealth against inflation and turbulent economies. Silver as a currency is one of the most genuine forms in existence; since silver is not bound to any single money type, the value of the precious metal cannot be altered by central banks or governments. Silver has a proven track record for thousands of years and continues to perform today during turbulent economic times. This is one of the most convincing reasons to transfer a portion of your IRA into a silver IRA or silver 401K.
IRS Approved Silver IRA Investment Options
The IRS only allows certain types of silver into an Individual Retirement Account. IRS approved silver metals for retirement accounts include the following:
- American Silver Eagle Coins
- Canadian Silver Maple Leaf Coins
- Austrian Silver Philharmonic Coins
- 10 oz. Pamp Suisse Silver Bars
- 10 oz. Credit Suisse Silver Bars
- 100 oz. Johnson Matthey Bars
Another item that is popular right now in Silver IRA’s is the American Eagle Silver Proof Coins. Proof silver coins were designed to be placed into an IRA and minted in limited quantities. This means they have a slight intrinsic value in addition to the silver content. Proof silver is struck four times rather than just once like a regular coin giving a frosted finish and mirror-like surface. When looking at a Proof silver coin versus a regular silver coin, the proof has a lot more luster and detail to it. Also, proof silver comes in a velvet box from the government along with a certificate for the purity and content of metals.
Adding Silver in an IRA
For more information about purchasing silver or adding it to your IRA or 401(K), contact American Bullion at 1-800-326-9598 to speak with a friendly silver IRA specialist.