A self directed precious metals IRA is a type of independent retirement account. When established properly and maintained according to the rules set by the IRS, these accounts carry tax advantages, which may help you to grow your retirement goals with lower costs. There are a few things to know about these types of investments before you use them.
How Do They Work?
A self directed precious metals IRA is a self directed IRA that lets you make decisions about what you are going to invest in. In this case, it allows you to invest in precious metals such as gold, silver, palladium, or platinum. In this particular type of account, you are able to purchase, hold, and sell these metals when you deem it beneficial to do so, often as a way of increasing the value of your portfolio. You can also withdraw them as you see fit and, if you do, you can take direct physical possession of the coins.
Is This a Route for You?
As with all financial investments, it is very important that you focus on choosing a strategy that fits your needs and risk tolerance. All types of investments carry some risk, including precious metals. However, many times, these metals carry less risk than stocks and bonds, making them a desirable investment for those who want lower risk. A self directed precious metals IRA still gives you a lot of freedom for use, though, which makes it highly desirable.
