Did you know that in much the same way that you can invest in a gold IRA, you can also invest in a silver IRA? Silver is very much like gold; its value holds even when the economy is shaky. This means that your retirement will remain safe despite whatever happens – inflation, devaluation or just market turbulence that affects other financial investments. The last economic meltdown had a huge effect on people who had their IRA’s sitting in the bank or invested in financial assets such as stocks and shares. Some people lost more than half of what they had saved. It became clear that if IRA’s were to retain their value they had to be invested in commodities whose value holds steady or rises over time. Silver turned out to be one of those commodities.
One of the most commonly asked questions about a silver backed IRA is whether there are any guarantees that its value will hold. The answer is that like anything else in life there is no 100% guarantee that your silver investment will retain its value. That said, if we rely on trends for that have emerged for hundreds of years it is obvious that it is very unlikely that anything will happen that will seriously affect the price if silver. In fact, if recent years are anything to go by it is almost certain that silver prices will continue to rise. There are times when economic activity lowers the value of precious metals. By the time this happens the value of the dollar is usually much affected and the value of precious metals is usually the first to bounce back. Should this happen when you are holding your silver IRA don’t panic; it is temporary and in a short while you will be able to see the value of silver rising.
How Do You Set Up A Silver IRA?
The process of setting up a silver IRA, contrary to what many think, is rather simple and takes a short time. All it requires is that you visit your current IRA custodian who gives you forms to fill out. You will then be required to find a custodian for your silver IRA. If you don’t know any it is recommended that you ask your current custodian for guidance. Once you fill out the transfer forms and both custodians have them your money is transferred to your silver IRA custodian who sets about finding the best prices of silver coins or bullion and then making the transaction. You will not hold any physical silver yourself. All silver is held by a government vetted, fully insured silver depository. The whole process, from the time that you fill out the forms until the time that your silver is transferred to the depository takes about two weeks. One thing that you should note is that your silver IRA can hold more than just silver. It can accommodate stocks, bonds, mutual funds, treasury bills and even other prec
ious metals such as gold and palladium.
When it time comes for you to start receiving distributions, which is at the age of 59.5 (if you want to avoid penalties) you can take the physical silver that is stored in the depository and liquidate it yourself. Alternatively, you can ask your custodian to liquidate it for you and then give you the cash. It is important to note that you will bee paying the custodian an admin fee for maintaining your account and you will also pay the depository. You will also pay a one time fee for account setup.
How much silver you decide to rollover is all up to you. A general rule of thumb is that you should not hold all your investments in one basket. You can invest some of your retirement funds in silver, some in gold and the rest in other forms that have some level of security against an unstable economy.