How can I open a silver IRA? Does opening such a precious metal IRA involve a lot of complicated steps or is it a straightforward process with few and easy steps? In today’s article we shall look at how you can go about opening a silver IRA and getting started with investing, so if this his is the information you’ve been looking for, read on till the end to find out more.
What is a silver IRA?
Most of the IRAs that investors open today allow for them to invest in paper assets. There are, however, some special IRAs known as self-directed IRAs that allow investors to add precious metals to their retirement investment portfolios. Most of the self-directed IRAs are usually named after the dominant asset invested through them.
A silver IRA is, as such, an IRA that allows you to invest in IRS-approved silver, with the intention of earning some money from the appreciation of the value of silver. Like any other type of precious metal IRA, the physical silver bought through a silver IRA is usually stored with an independent IRA custodian, in IRS-approved and insured depository storage.
How to open a silver IRA in 3 steps?
Opening a silver IRA is not a complex process, but is one that requires the help of experts who understand a few rules that can make all the difference in how easily you set up your account and begin investing. Below are the steps that you can follow to open your account today.
Pick your preferred silver IRA company and open a self-directed IRA
You can invest in many non-traditional assets through a self-directed IRA since most of them are not supported by the regular Traditional and Roth IRAs, and 401(k) plans. Most of these other types of IRAs and 401(k) plans only support paper assets such as stocks and bonds which are mostly administered electronically. You can decide to stick to the regular IRAs, or you can switch the self-directed IRAs that offer more freedom in terms of investment choices.
With a self-directed IRA, you can invest in precious metals to protect and grow your wealth by adding physical silver to them. Self-directed IRAs give you the power to decide where and how to invest your IRA funds. All you need to do is visit the website of your preferred company, fill in the account opening forms, and have them contact you.
The right silver IRA service provider will not only explain to you what to expect in the future as a silver investor but will also direct you on how to choose the best type of silver-based on your financial objectives.
Fund your silver IRA
The next step is to fund your account. You will receive the instructions on how to go about this from the company that you’ve chosen as your silver IRA service provider (also known as a silver IRA custodian). Once your silver IRA has been funded, the silver IRA custodian will contact a precious metal dealer of your choice, to purchase the silver that you’d want to be included in your account. Note that you have the freedom to research the recommended precious metal dealer, to ascertain that they are legit and that they have impressive ratings on consumer trust sites.
Simply because a precious metal dealer has been recommended to you does not necessarily mean that you should blindly trust them. As is the case with many other types of investments, opening a silver IRA is a process that will call for you to research the companies that will deal with along the way, to ascertain that they are not only offering legit services but that they are also not overcharging you in any way.
Invest in your preferred silver bars or coins
Unlike gold, silver is quite affordable, so you can manage to purchase silver bars and coins, even as a beginner. This does not imply that you pour in all your funds on silver bars and coins. The purpose of opening a silver IRA is to diversify your retirement investment portfolio, so it would beat the purpose of having opened a self-directed IRA only for you to solely invest in silver.
Depending on your retirement investment goals, you can decide to allocate about 5% to 15% of your retirement savings to precious metal investments. If you believe that silver will be the best option for you, then you can purchase the right amount of silver to help you meet your goals.
If you, however, believe that silver alone will not cut it, you can also check out the benefits other precious metals such as gold have to offer, and possibly purchase a few gold coins.
What happens after your silver has been purchased?
Once your IRA eligible silver has been purchased from a legit precious metal dealer, they are shipped to a safe depository. The depository has to be an IRS-approved depository, so you should do some background research to ascertain that your silver IRA custodian’s depository of choice does not have a history of attempted break-ins.
Can you roll over the funds in your current IRA/ do a silver IRA rollover?
Yes. If you already have an existing IRA plan, then you can authorize the transfer of those funds to your newly created silver IRA account. To simplify things, you can have the funds transferred from your current IRA to the silver IRA, without you having to handle the funds. Your silver IRA custodian only needs to contact your other custodian for this process to commence, hence eliminating the risk of you having to hold on to your funds, and getting fined by the IRS.
Ready to open your silver IRA today? Check out the top recommended silver IRA service providers below:
That’s all for this article in which we have addressed the question, “How can I open a silver IRA.” I hope you got all the answers you needed to get started today. If not, kindly drop your question in the comments section so that I can get back to you ASAP. You can also share your experience as a silver investor, to help those who are still not sure if they will invest in silver see what they can expect.
I wish you well,
Eric, Investor and Team Member at Gold Retired!