August 6


Silver IRA Rollover Guide

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Silver is an excellent investment for many looking to fund an IRA. Diversifying your portfolio is always a good idea, and investing in precious metals has long been a way Americans have protected their wealth.

Admittedly, most people don't think of silver when they think of IRAs. They think of the stocks and mutual funds that tend to make up most common IRA investments. Unfortunately, these common investments rise and fall with the economy's whims.

Silver allows IRA investors a chance to hedge against economic downturns while still taking advantage of the industrial need for this metal. Those who follow the metal closely know that silver is more than due for a significant rise in valuation.

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What is a Silver IRA?

One of the primary goals of most working people is to save for a time when they can retire. Unfortunately, most bank on the stock market supporting their ability to retire. When economic fortunes are uncertain, and the world is unstable, the market can quickly turn from a friend to a foe.

Silver has been a prevalent metal for a very long time. As such, the IRA has decided that silver can be used as one of the precious metals that can fund an IRA. Investors can even roll their existing monetary assets into silver for these specialized retirement accounts.

For the most part, a Silver IRA is just like any other kind of IRA. Rather than holding stocks and bonds as assets, these accounts hold physical silver items like bars and coins.

The silver in IRA accounts isn't just kept at home, though. These items are kept in special depositories until such a time as the IRA holder begins to take his or her mandated withdrawals from the account.

Beyond the difference in investment types, though, the accounts function similarly. You'll still get the same kind of statements you've always gotten, but now you'll see the value of your metals change rather than the value of stocks. If you choose to switch from a typical IRA to a silver IRA, the rollover process can be done without any tax burden.

What is a Self Directed IRA?

A Silver IRA is actually just a name for a kind of self-directed IRA that specializes in silver. Self-directed IRAs are special accounts that give their account holders all the power to choose what goes into the account itself, from precious metals to traditional stocks to real estate.

Regardless of what you choose to put in this type of account, any physical assets must be stored in an IRS approved depository. These depositories assure the safety of any items chosen for the account.

A "Hassle Free" Rollover

Now that you know the fundamental difference between owning gold and putting gold in an IRA, it's a good idea to start looking at the pros and cons of each type of purchase. Most people tend to lean towards IRAs for retirement investments, so starting with this form of investment is a reasonably good idea.

Which account types can be rolled over?

As you may imagine, not every type of account can be rolled over into a Silver IRA. Those usually do this process with a traditional IRA, a Roth IRA, a SEP, or a Simple IRA. Some other types of accounts that can be rolled over include 401(k)s, 403(bs), and 457 Deferred Compensation Plans. Pension Plans, Thrift Savings Plans, non-prototype IRAs, Beneficiary IRAs, and TIAA CREF can also be rolled over.

If you are unsure whether you can roll over one of your accounts, your best move will always be to contact a specialist. Most of the people who work on rollovers for IRA custodians are more than happy to answer your questions about your account's eligibility and what you need to do to make the rollover successful.

Here is a list of the best IRA firms to help you with the rollover process. Click here to read the full reviews.

Why Silver?

1. Strong Industrial Demand

Silver is quite a remarkable metal. Not only is it reasonably strong, but it's a rigid metal that conducts both heat and electricity quite well. This makes it ideal for many industrial uses.

What's unique about silver is that its collection of strengths is virtually irreplaceable with anything that costs less than silver. About three-quarters of all the silver in the world is currently in use in industrial capacities, and demand for silver grows even as the available supply of the metal continues to shrink.

2. Global Demand

The United States is not the only place where people seek silver. Both China and India are also encouraging their citizens to buy silver, with China making silver available at many local banks. Silver has become a popular tool for investors in many different parts of the world.

3. Hedge Against Rapid Inflation

Silver tends to diversify portfolios by those who view traditional investments as more prone to deprecation. The value of silver can fluctuate, of course, but it doesn't tend to do so as violently as many other types of investments.

Remember, this metal has value no matter where you are in the world. It isn't pegged in price to one type of currency, and it doesn't live or die by how a single economy happens to be doing.

Silver has been prevalent for thousands of years and will likely be around for many more. No matter what is going on economically, silver tends to be a store of wealth and a way for those looking to avoid placing all their faith in one type of investment to feel safer.

4. Diversification

Indeed, diversification really matters when it comes to planning for your future wealth or your retirement. Silver IRAs allow you to hold an asset that isn't as tied to the stock market and thus can weather many kinds of economic storms that more traditional assets cannot bear. 

5. Tax Benefits

A Silver IRA, like any other type of IRA, carries with it certain types of tax benefits. Using one simply allows you to enjoy all of the benefits of investing in silver and all of the benefits of using an IRA.

6. Growth Potential

Sometimes the best reason to choose silver is because of its potential. Silver has value now, and silver looks to have even more value in the future. It can be worthwhile to look at silver as an investment simply because it seems like it will continue to grow in value in years to come.

7. Protection Against Volatile Stock Market

Most people have heard stories about others who have lost everything due to movements in the stock market. The last thing any investor wants is to put in decades of work to fund a retirement account, only to lose it all just years before they retire. Taking the time to put at least some of your money into precious metals assures you that a massive change in the stock market won't wipe out everything you have worked so hard to save.

Advantages of an IRA

It would be irresponsible to say that the economy is perfect right now. Markets aren't sure about the future, whether it's the after-effects of the pandemic or looming military crises. If you were to put all of your retirement funds into instruments that solely rely on the stock market, you'd be setting yourself up for a future that puts you at the mercy of worldwide economic uncertainty.

One of the best ways to move forward with your investments is to ensure they are diverse. A Silver IRA brings with it both the advantages of using a tax-preferred account and the advantages of investing in a metal that doesn't necessarily match the movements of the stock market.

One of the best ways to see the benefits is to look at pricing trends. Not only is silver still growing in value now, but it seems like it could experience massive growth in the near future. Right now is simply a good time to start investing.

Disadvantages of an IRA

If you decide to invest in silver through an IRA, you're not going to get the fun of displaying silver in your home or even holding it in your own hands. One of the rules that the IRS has set forth is that your silver investments must be done through an IRA custodian and that those items will have to be kept in an IRS-approved depository.

This is not, however, a terrible thing. A good IRA custodian saves you quite a few headaches when it comes to buying silver, ranging from getting you the right insurance to ensuring that your items are all stored in the right place.

For some, though, not being able to see their items is just a bridge too far physically. Suppose you find yourself in this particular situation. In that case, the fact that an IRA keeps you away from the metals you wish to invest in is something you'll have to consider as you make your investment choices.

Final Thoughts

Silver is a very low-profile investment compared to other metals on the market. It's important to remember, though, that this is a metal in high demand outside of the investor market. This means that those who get into silver now are dealing with a commodity that hasn't quite spiked to the point it should be - especially as industrial needs continue to rise.

It's a good idea to look at silver to diversify your portfolio, especially if you are already considering investing in precious metals. Doing so might give your portfolio the edge you need to make your retirement dreams a reality truly.

Hopefully you gained a lot of insight from this article. To take the next step in the process we recommend to read this article on the top silver IRA firms who can help guide you from start to finish through the rollover process. 

You can click here to read the article and the companies full reviews.