Because building a strong retirement portfolio for your future is no longer a luxury but a necessity, it is important that you make smart decisions with all of your finances. To do your best with the finances that you possess, you need to do your homework in advance.
With that being said, for those of you who are presently interested in opening up a Silver IRA, here are some things that you need to know about the pros and cons.
Pros of Opening up a Silver IRA Account
First of all, you should know the actual benefits of opening up a silver IRA prior to making an investment. In fact, here are some of the main pros that you should review prior to open up your account.
1. Costs for a Silver IRA Startup are Reasonable
If you want to save money in the start-up stage of your investment, you need to know that the Silver IRA is an excellent choice. This is especially true for those of you who are selecting one of the most highly-rated IRA administrators in this industry when you are opening up your initial account(i.e. Regal Assets ).
2. Protects Your Wealth – Increased Wealth Preservation
For those of you who do not want to take extraordinary risks, Silver IRAs is one of the best investment options that can help you in preserving your wealth. This is because the actual value of silver dollar today is significantly more than its value over 100 years ago. For instance, when you compare the different prices of Silver IRAs, you will discover that the increase is at least 10 times more compared to today’s rates. Therefore, if you buy a silver IRA today, you can expect its value to grow astronomically over the years.
3. Silver is Independent of Government or Certain Agencies set Value
Another pro to investing in a Silver IRA is its independence in value that supersedes input and control of the government or other associated agencies. Simply put, the silver that you buy for your retirement cannot be adversely affected by man’s ability to set rates at certain prices. Instead, silver can stand the test of time with its own financial stance.
4. Protection Against Currency Devaluation
If you want to make sure that you have a hedge around your portfolio to keep it from being evaluated after it has been purchased, opening up this type of account can save you today and in the long run. For instance, if you compare the present dollar currency, you can track its history of devaluation from one specific time in the past to today. According to certain publications, the rate of decline for the dollar bill has steadily decreased over the years. The decline has been as much as 90%.
On the other hand, if you track the history of physical silver ira, you can watch this industry face many increases in rates over time. Similar to other precious metals like gold, it holds intrinsic value because it is rare.
Cons of Opening up a Silver IRA Account
Now that you are very familiar with the different pros of opening up an account, you need to know the possible downsides of opening a Silver IRA count for your retirement, too. Here are some of the most notable limitations that you need to consider before you buying silver for your retirement plan.
1. Storage Fees
if you are opening a silver IRA account, you need to learn the rules and regulations that you must abide by. Because these precious physical metals cannot be stored away in your home or in any other offsite location that is solely controlled by you, instead you are required to pay a certain amount of storage fees. These storage fees will be paid to a custodian of your account and they can vary based on each custodian’s established rates. These fees must be paid annually as long as the storage is needed. In short, storage fees can easily add up over a period of time, while also reducing the amount of your initial investment.
2. Limited Amounts of Investments
Another con to investing in this type of precious metal is the amount that you can actually purchase. For instance, taxes and penalties are incurred if you do not follow the rules of buying a limited amount of Silver.
Before you open a Silver IRA account, you need to know what is involved in making these kinds of investments. Therefore, you need to know both the pros and cons in advance so that you can make an informed decision.