Self Directed IRAs >> How To Leverage Gold
The main purpose of this article is to reveal how you can leverage gold and other precious metals via a self directed IRA to protect your retirement portfolio from the ravages of inflation, possible hyperinflation even, and the ravages of economic turmoil and uncertainty.
In case you need background information about self directed IRAs and the pros and cons of them in the first place we will start there by explaining the whole process behind this type of IRA account.
If you wish to skip that part and jump straight to the information about how to leverage gold and precious metals please click here.
Let’s start by taking a look at some of the options that are available to you right now.
Why Choose Self Directed IRA Accounts?
This is obviously the most important question you need to ask yourself. So if you can figure out the reason why you’d prefer this type of IRA over a traditional IRA then you’ll know whether or not it’s the right choice for you.
It can be argued that self directed IRA accounts are actually much better than traditional ones because you have a lot more freedom to invest with these particular types. One of the implications of owning a traditional IRA account is that you need to get approval from an IRA custodian if there are going to be any specific changes in money management regarding your account.
The advantage of a self directed one is that you don’t have to go through any of the red tape regarding the management of your own money and investments and you don’t have to deal with any type of IRA custodian whatsoever. This puts the control completely in your own hands and you don’t have to let anybody dictate how and where you invest your money. The choice is solely yours and there are no hoops to jump through to make the precise investments that line up with your own particular situation and circumstances.
Are There Any Other Reasons To Take The Self Directed Option?
Yes, there are certainly some other very important reasons why you’d want to take the self directed option as opposed to going down the traditional IRA route. Since you don’t have to deal with an IRA custodian you also get to keep more of your money because you’re not forced to pay any IRA custodial fees. This is a big benefit because the management fees involved in having an IRA custodian manage your traditional account will eat into your profit potential.
There are all kinds of reasons why your custodian might charge a fee, and they could be for something as simple as processing one tiny transaction that you could most probably take care of yourself.
If you just had a little bit more confidence in yourself and a bit more knowledge you should easily be able to manage your own investments without the assistance of anybody else.
How Can I Divide The Funds In My Self Directed IRA Account?
This is a very important question, and it’s good to know that you can divide funds in self directed IRA accounts in many different ways.
If you decide to go down this route you’ll be able to put your money into all kinds of things like commercial property, foreign real estate, tax liens, raw land, discounted notes and even investment property.
It’s very easy to divide up these funds by just writing a check and then managing these different accounts very simply. This is just one option available to you and it is definitely an advantageous one because it allows you to diversify your IRA even further and therefore to limit your risk potential in any one particular area.
How Else Should I Diversify The Risk?
One very popular way to diversify your investment portfolio right now is by investing in gold and other precious metals. Probably the safest way to do this is by actually buying the physical commodities themselves as opposed to the more risky option of investing in them indirectly on the stock market. It’s very different from buying the precious metals themselves, and you could really stand to lose a lot of money if you don’t understand both how this market works and the volatile nature of some of these ETFs that are available for precious metals.
By investing in the mining companies themselves, as opposed to the physical metals, you are relying on the management of the particular Company as well as the local conditions where the mine is located rather than just on the performance of the commodity itself.
The purpose of this article is not to explain the benefits of investing in gold but if you want information about that please click on Why Invest In Gold?
How Should I Use My Self Directed Account To Invest In Gold and Other Precious Metals?
For reasons explained above the safest way to invest in gold and other precious metals is by buying the physical commodities themselves. And the only way to have the ability to own precious metals in this type of IRA is to have a specific type of account that is mostly known as a gold IRA account. For more information about these please refer to Frequently Asked Questions about Gold IRA Investing.
With the global economy struggling so much, and with so much global uncertainy (such as with Greece in the Euro Zone), it is wise to have gold as part of your holdings to hedge your bets. Most financial experts are recommending this right now and the general census of opinion is that it is wise to have up to 30% of your investment and retirement portfolio held in physical gold.
How and Where Can I Get A Self Directed IRA To Invest In Gold?
The short answer to this is, talk to an expert! By that I mean someone with expertise in both precious metals and retirement accounts.
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