Buying silver in the form of bullion coins can be a great way to invest your money and grow your savings. The way to do this is usually through a retirement account. There are several benefits to investing in silver coins. One benefit is the tax savings become even more attractive. Another great benefit of buying silver in your 401k as a long term investment is it’s a secure source of money management.
It’s never a good idea to just “buy silver in the 401k.” First, you must have earned it. This usually requires some investment and work. Don’t go into the 401k and just buy any old silverware or coin set you happen to find. That’s not how it works. What you’re looking for when buying silver in your 401k are the tax benefits associated with investing in it.
You see, when you invest in gold and silver bullion coins the IRS sees them as an investment. Therefore, you are allowed to invest tax free in them. That’s another advantage. If you look at your typical 401k program, there are no benefits to you as a participant.
Investing in the form of bullion coins is not tax free either. This is another advantage. When you invest in the form of bullion coins you get the tax benefits with no income or capital gains on the transaction. So why wouldn’t you want to do that?
You would think that buying silver in the form of bullion coins, as opposed to investing it in the form of standard bullion bars, would be more tax efficient. However, that’s not how it works. The tax benefits associated with investing in silver bars, as opposed to bullion coins, are dependent upon the present value of silver at the time of purchase. Now take that same equation, but with gold, and plug it into your tax calculator. It will give you a very different picture.
If you think about it, you really have to weigh the pros and cons of buying silver in your 401k versus investing it in the form of bullion coins. There really is no way around it. The tax benefits are too significant. And, if you consider the fact that gold has been increasing in value, too, then you quickly see the difference.
When buying silver in your 401k, if you are going to buy tangible silver, invest in those accredited silver certificates. Investing in certificates of deposit, or ADS, is a great way to grow your savings, and it’s tax free. But, it’s not quite the same as investing in silver coins, which will give you instant benefit, tax wise, in the form of capital gains. Silver is one of the most stable investments around, and will always be worth something.
So, we’ve had a little fun with the discussion of buying silver in your 401k, and hopefully you can see some things that can be taken out to improve your investment situation. Remember, don’t take your eye off the prize. Your nest egg is precious, and you want to make sure it’s doing the best job that it can.
As far as buying silver coins, there are a couple of options there, as well. The first option is to purchase silver bullion. Buying silver bullion has the advantage of always knowing that your money is going to be safe, and that you are getting an excellent product for your money. It’s also nice to have a physical representation of your wealth.
The second option is to buy online silver coins. There are several companies that sell silver coins on the Internet. If you do your research you should find a reliable company, that is well known and reputable, and that has a good reputation for customer service. Once you decide on a company, check with the Better Business Bureau to see if there have been any reports of financial fraud relating to buying silver in your 401k.
In conclusion, remember that your silver is not really lost forever and buying silver coins can provide you with an excellent retirement investment. Just be sure that you are buying a company’s product, rather than individual silver items. Keep your eyes open when it comes to investing, and stay abreast of your portfolio. Your retirement fund needs to be sound, and your investment portfolio needs to be sound, too.
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