In the not-too-distant past, individual retirement accounts (IRAs) were made up of just bonds and stocks. A while later, IRAs started to include exchange-traded funds and associated mutual funds. Most recently, investors are utilizing self-directed IRAs to include precious metals within their portfolios. Learn what advantages precious metal IRA accounts provide below.
Mostly Tax-Free Investments
One of the advantages precious metal IRA accounts can offer is that the accounts are tax-free as long as you are not withdrawing from them. These types of accounts do not accrue dividends or interest, so the types of taxes associated with those types of payments are not present here either.
You only pay tax on these accounts when you withdraw money from those accounts. Even then, it is only taxed as simple income at your specific tax rate, so even the limited taxes associated with this account are not complicated.
Minimize Your Portfolio’s Risk
Precious metal IRA accounts can be a sound way to minimize your portfolio’s risk, being the value of precious metals like gold and silver do not fluctuate as much as other investments. Company stocks can fluctuate a great deal, particularly when quarterly results are reported or negative news is published about the company. Cryptocurrencies are even more volatile in value, easily gaining or losing thousands of dollars per day.
Being that gold has had monetary value since about 700 B.C., it has over 2,000 years’ worth of value. This is why it is considered such a stable investment and why many investors flock to it as a “safe haven” when their other investments are fluctuating and faltering. Other precious metals like silver have similar reputations, which is why adding precious metals to your IRA can be a sound investment strategy.
Orion Metal Exchange has much experience setting up precious metal IRA accounts. Learn more about how to add precious metals to your account at web
