Planning For Retirement: Roth IRAs and Precious Metals

by IRA Rollover in Roth IRA with Comments Off on Planning For Retirement: Roth IRAs and Precious Metals

What Is a Roth IRA?

A Roth Individual Retirement Account, also known as a Roth IRA, is a retirement savings account that offers investors the option of saving tax-free income for their retirement. It is different from a Traditional IRA in the sense that investors do not have to pay a tax deduction up front. This investment vehicle is especially ideal if you anticipate paying a higher tax rate during your retirement.

What Are the Contribution and Income Limitations?

Unfortunately, there are income eligibility requirements mandated by the Internal Revenue Service. For example, if you are head of 401k roth irathe household and single, you cannot make more than $110,000 a year. The total gross income of married couples filing jointly has to range from $173,000 to $183,000 annually. Grossing anything above the specified amounts make you ineligible for Roth IRA contributions. The contribution limitation amounts for 2013 is $5,500 for anyone 49 years old and under, and $6,500 for anyone 50 and over.

Types of Investments That Are Roth IRA Eligible and Precious Metals

There are many types of investments that are Roth IRA eligible. These investments include precious metals like silver and gold, mutual funds, stocks and bonds. Precious metals have reached record highs in recent years, so it is understandable why many investors are interested in learning how to invest in gold and silver.

When you invest in precious metals like silver and gold, there are a few things that you need to take into consideration. Precious metals don’t operate the way your other investments do on the stock market. During periods of financial instability in the stock market, precious metals have a tendency of doing better. However, you must remember that any type of investment has its risks. No matter what, always invest in more than one type of asset to reduce your overall financial risk.

Did you know that precious metals are considered commodities? They always have the probability of going up no matter how much they fluctuate over the years. Strict guidelines are set on the types of coins that can be added to your Roth IRA. The precious metals added must be pure. Coins that meet the guidelines are:

  • Most bullion coins
  • American Buffalo gold coins
  • Mexican Silver Libertads
  • Canadian Maple Leaf gold coins
  • American gold coins
  • Silver Eagles

Make certain you qualify for a Roth Individual Retirement Account before you begin investing time and money. It is one of the best retirement plans available if you are looking for an investment vehicle that has a lot of flexibility.  For example, you get to avoid penalties and taxes if you want to withdraw funds once you reach 59.5 years of age. If you are looking for a long term investment strategy with promise, include precious metals in your portfolio. Secure your future and benefit from the tax advantages that Roth IRA retirement plans offer.

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