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Going For the Gold Investment

Published on February 14, 2014

Team USA is expected to come home from Sochi with the most medals, with Norway favored to win the most gold at the 2014 Winter Olympics. For investors who aren’t competing in Sochi, they can go for the gold by investing in gold or other precious metals through a self-directed retirement plan.

The purchase of bullion is a relatively safe investment and one that goes back further than the Olympics. (Precious metals are the original way that people stored their wealth.) And, there are numerous benefits to investing in precious metals, an important one being that the value of precious metals provides a strong hedge against the rising costs of retirement living.

Why invest in precious metals?

All types retirement plans can be self-directed (Traditional, Roth, SEP, SIMPLE, 401K), with the same tax advantages associated with those types of accounts; all can include the following precious metal assets:

  • Investment-grade gold and silver coins (certain IRS restrictions apply)
  • Investment-grade gold and silver bars
  • Gold, silver, platinum and palladium bullion that meet applicable purity or fineness standards.

Account holders may choose to hold precious metals in a self-directed IRA as physical bullion, certificates, or Exchange Traded Funds. The hard assets (bullion, bars and coins) are held off-site in a depository (not in the investor’s possession) that specializes in holding precious metals.

Some advantages of building a self-directed precious metal IRA are:

  • Buy and sell orders can be executed quickly, ensuring that the investor can take advantage of the variables of timing and pricing.
  • Monies grow tax free or tax deferred, depending on the type of retirement plan.
  • Investments are not dependent on the stock market or subject to its unpredictability.
  • Gold is a tangible asset with worldwide demand and prices that have been trending upwards for years.
  • Silver remains relatively affordable and provides a comfortable point of entry for investors, with room to grow in value.
  • Palladium is rare and therefore a high-priced commodity.

 Precious metal IRA – including this alternative asset in your self-directed IRA

Investing in alternative assets such as precious metals is a powerful way to diversify a retirement portfolio.  A self-directed precious metal IRA requires an administrator, such as Next Generation Trust Services, to set up the account, handle the transfer of funds to the precious metals dealer, and facilitate the physical transfer and storage of the coins or bullion.

As with all self-directed investments, the investor is responsible for doing the proper research about this type of nontraditional retirement investment before sending instructions to the account administrator. In addition, it is the investor’s responsibility to secure a depository for precious metals, and provide Next Generation Trust Services with the dealer’s contact information and full purchase instructions so that we can implement this transaction for you.

Our knowledgeable professionals can answer your questions about self-direction, including non-publicly traded assets—such as gold, silver, and other commodities—in your self-directed retirement plan. However, we strongly recommend you do your due diligence about this or any self-directed investment, and consult your trusted financial advisors about any tax implications precious metals may have for your unique situation.

Our website has all the materials you need to open a new self-directed precious metal IRA. For more information about self-direction as a retirement strategy, or how to include precious metals in your self-directed retirement plan, contact Next Generation at (888) 857-8058 or email Info@NextGenerationTrust.com.

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