Platinum stands out as one of the most valuable precious metals that investors can buy today. It is in high demand and not as readily produced as other precious metals like silver and gold. The high demand for it among buyers raises its purchase price, which translates into lucrative returns for people who invest in it.
Further, platinum is a visually appealing and tangible asset that gives you peace of mind and secures your present and future purchasing power. It is commonly used in the production of consumer goods like jewelry and electronics. Manufacturers also use it in the creation of dental, medical and automotive products.
When you want to add platinum to your investment portfolio, you can start by including it in a self-directed precious metals individual retirement account, or IRA. This type of retirement savings account offers you the chance to invest in a valuable and reliable asset that may perform just as well as, if not better than, paper assets like stocks, bonds and mutual funds.
Further, you can buy platinum in a variety of forms, including bullion, coins and bars. Contact Sedona Bullion to learn more about investing in platinum today.
The Benefits of Adding Platinum to Your IRA
When you are serious about building up solid and reliable retirement savings, you want to invest in assets that will perform well and increase in value. You also want to avoid investing in anything that could cost you far more money than you can afford to lose.
Platinum can be the ideal asset to invest in because it typically resists economic factors, such as recession and inflation, that can quickly devalue assets like stocks and mutual funds. Further, platinum itself is not tied to any single government or economy, allowing it to thrive even when other assets bottom out because of geopolitical circumstances.
Finally, platinum can secure your future purchasing power, which can be vital as you prepare to retire. You want to know you will have a financial nest egg on which to rely once you stop working. Platinum promises to offer you high value that you can liquidate for cash. You can rely on it to provide you with the financial means to pay your bills, buy groceries and cover other costs after you retire.
What is a Self-directed Platinum IRA?
A self-directed IRA is a type of retirement account that lets you add assets like precious metals to it. It gets its name from the fact that you are in charge of deciding what kinds and how many precious metals to add to it. You can also decide if and when to add precious metals when you open and fund a self-directed IRA.
However, you must also follow certain IRS guidelines when you open and add precious metals like platinum to your self-directed IRA. For example, you are not allowed to retain custody of the account. You must hire an IRS-approved custodian, most commonly a financial institution, to maintain the account for you.
You must also ensure the platinum you buy meets IRS purity standards. To take advantage of the tax benefits of this type of retirement account, you must invest in platinum that is at least 99.95 percent pure.
Likewise, you must abide by similar requirements for funding it or taking deductions from it as the IRS dictates for other types of IRAs. Your custodian will advise you of those requirements when you open your self-directed platinum IRA.
Opening and Funding a Self-directed Platinum IRA
When you are ready to invest in platinum for your retirement, you can get started by opening and funding a self-directed platinum IRA. The first step in this process involves choosing a custodian for your account. The most common examples of custodians for self-directed precious metal IRAs include banks and credit unions.
After you select your custodian, you can then apply for and open the account. Your custodian will retain all of the documentation for the account, as the IRS requires.
You can then fund the account using either cash or transferring funds from existing accounts, such as your 401(k) or a Roth IRA. Once you fund the account, you can direct your custodian to purchase platinum on your behalf and send it for storing at the depository of your choosing.
The IRS does not allow you to keep the actual platinum coins, bullion or bars that you buy. You must send it to a depository for safekeeping.
Adding platinum to a self-directed precious metals IRA can give you financial peace of mind. Learn more today by contacting us at Sedona Bullion.
