The Employee Retirement Security Act produced the opportunity for individuals to create tax sheltered Individual Retirement Accounts to provide for their retirement. These vehicles traditionally held real estate, stocks, mutual funds or bonds. These days many have become skeptical of these assets to produce returns needed for retirement. The Silver IRA allows the combination of higher returns through investing in precious metals, with savings in taxes.
One can contribute up to $5,000.00 per year or $6,000.00 for those age 50 or more, but not more than the year’s income. Distributions may not be taken before age 59 1/2, or a 10% penalty applies.
Increasing government involvement in the private sector through regulation, and in some cases the takeover of whole industries, and the resulting uncertainty about future conditions, has limited the capacity of businesses to show profits. Predictably there is not much enthusiasm on the part of those who drive our economy through taking risks, to invest their funds and abilities under these conditions with so little potential for reward, and immeasurable risk.
Individual income levels and purchasing power have declined considerably due to contractions in the economy and high unemployment levels. Prices are escalating rapidly because of inflationary money printing at the Federal Reserve. These factors continue to push down company profits as well as real estate values. The result is poor returns on stock and housing investments.
Silver is one of the precious metals, but is now also an industrial material due to unique characteristics that make it best suited for many present day applications. For this reason its annual production is consumed at a much greater rate than gold making it more rare than that metal. This causes its value and price to rise.
Over the next five to ten years precious metals may produce the best return on investment. With continued deficit spending by the government, financed through Federal Reserve dollar printing, a Silver IRA will increase in value as the dollar deflates.