IRA is an important aspect of anyone’s retirement planning. Some think that planning for their retirement in their 20s can be very early, but actually, it is not as there is no term “too early” when it comes to your retirement plans especially if you want to enjoy your retirement years comfortably.
If you have not thought of a plan just yet, investing in a silver IRA is strongly recommended.
To help you get to know more about this type of IRA, read this article.
Silver IRA versus Traditional IRA
Silver IRA, including all types of precious metals IRA, are considered to be as self directed IRA, and not done via huge firms like banks. Instead of the traditional route, the IRA account owner should hire a different trustee or non bank custodian keeper to work your account.
While the traditional IRAs are made of bonds and stocks, silver IRAs on the other hand, allow the account holder to have ownership of a real, physical silver.
This is different from buying silver, as if you buy silver through an IRA, you can enjoy tax benefits for IRA but you cannot actually hold the silver you purchased as the silver will be stored in a dedicated depository of your choice.
Setting Up Silver IRA
The company where you plan to create a silver IRA account must be approved by the government, same as with the custodian you will hire to manage your account.
After opening an account and consulting a custodian, what you need to do next is to find an authorized entity where you will buy the silver from, and a trusted depository for safe keeping of the silver you purchased.
Be reminded that all transfers and transactions will only be done by your chosen broker and custodian, respectively.
Advantages And Disadvantages Of Silver IRA
Just like with any investment, silver IRA also has its own set of pros and cons. Knowing all of them is necessary, before you finally choose this type of IRA.
So, what are the advantages you can get from the Silver IRA? Here are they:
– It can diversify your portfolio
– It improves your finances
– Silver IRA is highly reliable
– Compared to gold, silver is cheaper
– Value of silver increases over time
Now that you know the advantages, the next thing you need to consider are the disadvantages of investing in silver IRA, to enumerate some of them, here they are:
– There is no interest gained on silver, the only time you can earn from this is if the value of the silver on its own increases
– There can be additional fees you need to cover if you want to invest in silver
– You cannot hold the silver and bring it at home to show to your family and friends
Now that you know the advantages and disadvantages of Silver IRA, it is now your discretion on whether to invest in it or not.