The Power of a Self Directed IRA
Retirement Account Management
In this article you will learn how a self-directed IRA holding assets of gold and silver gives you direct power as a way to hedge against inflation, give you global mobility and allows you to defer taxes at the same time, through use of the individual retirement account (IRA), which is a tool that can be set up in many different ways to give control, oversight, and management to a named entity or person, one of those options is you. A self-directed retirement account can actually be set up in many forms, like a 401(k), but for ease of reference the entire concept will be simply referred to as “IRA”.
A self-directed IRA allows you to invest in a wider range of assets than traditional IRAs. There are important limitations, that will be addressed below, but so long as those boundaries are not crossed a self-directed IRA provides flexibility to direct the account’s funds to be transformed into other various assets, including real estate, private equity, and precious metals such as gold and silver.
Cash is simply a trade medium, an asset is a product or concept that you obtain ownership over. Private equity and stocks are a limited ownership in a business concept and its products. Title is ownership to real estate, as a definite product. Then there are precious metals. Since time began, there is no title, no stocks and splits, no partnership agreements, rather with physical gold and silver you just own it.
The science of economics and its influence on the volatility and vulnerability of cash is beyond the scope of this article, but nothing could sum it up in more plain words than the center of our monetary regulation. The Federal Reserve publicly states on its website: “The major items on the liability side of the Federal Reserve balance sheet are Federal Reserve notes (U.S. paper currency) and the deposits that thousands of depository institutions, the U.S. Treasury, and others hold in accounts at the Federal Reserve Banks.” Yes, your cash is a major item on the liability side of its balance sheet, and also states that gold is a major asset on the positive side of that same balance sheet. “Coin held by the Reserve Banks is an asset on its balance sheet” per the Federal Reserve website. Since 2019 till March of 2023, the US as to its “Reserve position in International Monetary Fund” has increased it by ≈ +34.62%. U.S. Reserve Assets. Our Special Report Central Banks goes deeper into the subject and is yours for the price of asking, it’s totally free.
If you already have an IRA and our thinking of converting to gold and silver, you need to read the our special report, as your entire retirement account’s security could depend on it.
Investing in Gold and Silver with a Self-Directed IRA
Gold and silver have always remained popular as asset options for those simply looking to diversify or for those desiring to secure their retirement portfolio. With a self-directed IRA, you are the one that decides which assets you transform your cash into, for those that have already read our Special Report Central Banks, then you know that not only the Federal Reserve but also all the banks of the world are in a mad dash to convert all cash into precious metals, and with a self-directed IRA you can follow the lead of those that know far more than any of us and convert your cash liability into the assets of physical gold and silver bullion in the form of coins, bars, or proofs. This means you have the ability to hold the physical asset in a secure location of your choosing, there are four options for storage that the IRS does not consider a taxable event. The most popular choice is a secure depository.
One of the many benefits of investing in gold and silver with a self-directed IRA is that these assets are widely recognized as a method to hedge against inflation and market volatility. Gold and silver have historically held their value over time, making them a reliable asset option for those looking to protect their retirement savings. Failing to prepare for such eventualities could result in the worst possible time to have to resort to remaining change in the piggy bank, securing your life’s work now, is what you have waited your whole life for.
Setting up a Self-Directed IRA
This is actually far easier than it might seem. To set up a self-directed IRA, you will need the following skill sets and abilities: you must know your own personal information, access to your current IRA’s information and the ability to fill out a form. It’s that easy.
We have vetted a number of IRA service providers to serve as a custodian that also specializes in not only self-directed accounts, but precious metal accounts. The custodian does all the heavy lifting, i.e., handle the administrative duties of your account, administer all record-keeping and reporting, and will facilitate the purchase and storage of your gold and silver assets. Safe Haven Metal serves as the vendor of the precious metals and initial intermediary between you and the custodian until all the precious metal you desire is securely stored in a fortified facility that carries a $1,000,000,000 all risk insurance policy.
Rules of the IRA
It’s important to note that there are specific rules and regulations that apply to self-directed IRAs, including restrictions on prohibited transactions and disqualified persons. It’s important to work with a custodian that is experienced in self-directed IRAs to ensure that you’re complying with all regulations. The most important of all, never self-deal. This basically means you cannot invest in something you already own. For example adding an addition to your real property. The difference with gold and silver is that it is being acquired from another or in other words converting your own money into your own gold, but that gold came from someone else.
Summary of Self Directed IRA
In a nut shell, a self-directed IRA is a flexible retirement account that allows you to invest in a wider range of assets than traditional IRAs. With a self-directed IRA, you can convert your liability of cash holdings into the asset holdings of physical gold and silver, which can serve as a hedge against inflation and market volatility. If you’re interested in converting into the asset of precious metals as part of your retirement portfolio, a self-directed IRA is a great option to consider.