With our silver IRA guide, you’ll understand why so many people choose to secure their retirement with this time-tested, reliable precious metal. For many, the tangible nature of precious metals represents a safety one can’t get with traditional currency. They prefer a silver-backed IRA. This allows them to rest comfortably, knowing they have something of value backing their retirement. With Silver IRAs, you don’t need to worry about market fluctuations or economic instability as much as you would if you had more traditional investments. So let’s talk about Silver IRAs, Rollover, and everything else you need to know.
Why a Silver IRA?
Another benefit to a Silver-backed IRA is that Silver tends to be more tied to the global economy. It has many more applications than other precious metals, with half of all Silver used in high technology and heavy industry. Silver can be found in smartphones, tablet computers, solar-panel cells, and automobiles. Our cars wouldn’t run without Silver. That’s just a drop in the bucket when talking about the myriad uses of this versatile metal. Its conductivity alone makes it invaluable in the construction of electronics. In 2021, more than 508 million ounces of Silver were used in manufacturing worldwide.
The better an economy is doing, the higher the demand for specific industries. With Silver being used in so many of these industries, demand for silver rises as economies prosper. It should be noted that the silver market is much smaller than the gold market. Even though Silver is much more widely used, it’s also more volatile. This isn’t inherently good or bad; it means more risk is involved. Ironically, its wide usage is part of what makes it so volatile. As economies struggle and produce less, silver demand shrinks, as does its value.
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Poor Man’s Gold
One of the most popular things about Silver is that it tends to be more affordable than gold per ounce, so the barrier to entry isn’t as high. It’s sometimes referred to as “poor man’s gold.” Those who don’t have as much money to invest initially can stretch that money further by choosing a Silver IRA over other precious metals. Gold, platinum, and palladium are all options, each with pros and cons. Still, Silver’s affordability (by comparison) makes it an ideal choice for those who have limited funds or are just trying to test the waters.
With Silver IRAs, just like any precious metal IRAs, you aren’t physically holding on to your Silver. Any physical metal you own, whether it’s bars or coins, will be stored in an IRS-approved depository. Now, this is where there’s a bit of a downside to Silver being a more affordable metal.
Precious metal IRAs carry extra fees that traditional IRAs don’t, and one of those fees involves storing the metal. Since you’re not keeping it yourself, you must pay to have it tucked away in an IRS-approved depository safely. And because Silver is more affordable than gold, silver investors tend to possess more metal, which means more storage. This means that you may end up paying more for storage than you would if you owned the same value in gold because, given its higher value, there would be less gold than Silver.
Silver IRA Rollover
If you already manage a traditional IRA or 401k, it’s a good idea to diversify your investments with some precious metals. If you take one key piece of advice from this Silver IRA Guide, it’s just that: diversify your assets to secure your retirement further.
Unfortunately, you can’t incorporate metals into your existing accounts. There are ways around this. You can invest in metals without purchasing them by buying stock in Silver companies or going with exchange-traded funds. For the sake of this guide, however, we will assume that you’d like to own Silver directly. After all, most people seeking a silver-backed IRA do so because they like having the physical, tangible metal behind their investment.
When you open a new, Silver backed IRA, you don’t need to put up new money for it. If you have an existing account, you can do a Silver IRA rollover, where money from that account will be used to set up the new one. It can be a portion of those funds or all of them. You can always do a Silver IRA rollover from another IRA account. If you have 401k, however, it all depends on what your company allows.
401k Restrictions
401k plans are employer-sponsored, so your employer gets to decide what you can and can’t do with the money in your plan. Some companies do let you roll funds over into a new IRA. In most cases, you can only do so if you leave the company. You’ll have to contact your plan’s sponsor to see what you can do.
If your plan sponsor tells you that you can’t do a rollover while you’re still with the company, don’t worry. You can still open your own self-directed Silver IRA. You’ll need to have the capital on hand to do so.
Let’s say you’re going ahead with the rollover. The first thing you need to do is contact the custodian of your existing IRA or the sponsor of your employer’s 401k plan. Tell them you want to do a Silver IRA rollover, and they’ll know exactly what they need to do. Remember that you will need a new custodian for this new account.
This is an essential part of our Silver IRA Guide. When rolling over funds, you will play a role in the process. The money taken out to start the silver IRA will be in your possession. If you don’t, deposit that money into a new IRA within 60 days, and you’ll face tax penalties. Fortunately, 60 days is plenty of time to complete everything correctly, mainly if you research beforehand. Just keep in mind that you’re directly responsible during this intermediate step.
From 401k to Silver IRA
If your employer allows you to perform a Silver IRA rollover, there are more than a few benefits. If you have multiple 401ks from multiple employers, it’s a no-brainer. It’s not uncommon for those who’ve changed jobs multiple times to have several 401k plans. Rolling them over into a silver-backed IRA allows you to consolidate them into one account. This might sound like the opposite of diversifying, but not really. There’s no benefit to having multiple accounts with the same type of investment. It just makes them harder to manage.
Another huge benefit that IRAs offer that 401k plans does not is the freedom to invest in whatever you want. Your 401k plan limits your investments to what’s provided in your plan. With your own self-directed IRA, you have a wide variety of investment options. You can go with precious metals, stocks, bonds, or anything else you can think of.
Lastly, with an IRA, you can take it to any brokerage that you want. Whoever manages your 401k, your employer appointed. Your retirement account, however, can go wherever you’d like it to go.
This isn’t to say that there aren’t benefits to a 401k. There may be certain benefits that an IRA wouldn’t give you. Plus, you can take a loan from your 401k, which you can’t do with an IRA. We’re not trying to demonize 401ks. We’re simply explaining why so many people choose to go with retirement accounts and specifically Silver IRAs.
Grab Our 2023 IRA Kit
If you want to open a Silver-backed IRA, grab our 2023 Gold IRA Kit from our website. Gold might be in the name, but it works just as well as a Silver IRA Guide. Precious Metal IRAs operate essentially the same, so all the information you get from our guide will help you with your silver investments. There’s no cost to you, either. The guide is free, and we pay for shipping, so all you need to do is fill out a simple form. We’ll give you a quick phone call to verify your address, and you’ll get your guide in just a few days.
Our Silver IRA guide comes in multiple formats, so you can read, watch, or listen to it – whatever works best for you. It will show you how to protect your retirement completely tax and penalty-free. Reach out today and get started on your Silver IRA and your retirement fund.
