Tag: what is a gold ira

How to Convert a 401K into a Gold IRA

You’ve worked hard to save money for your 401 (k). Don’t let market volatility ruin your investment strategy. Precious metals, which tend to be more volatile than equities or mutual funds offered by company plans generally, can be a good investment to help protect your retirement assets.

Gold Is a High Performance Vehicle

Did you know that over the last 20 years, the open a gold IRA market has outperformed both the stock and the stock markets by a ratio 4 to 1. While the stock market is at its highest point, gold and silver are both at their lowest level in a year and a quarter. This is an excellent opportunity to buy low and sell high with one asset. People are looking to increase their exposure to precious metals like gold and silver, given the current bullish investment trends in gold and Silver. A 401(k), retirement savings account that is not currently converted to a gold or silver 401 (k), could be one of your easiest options to protect gold and silver without having to spend any money.

You can rest assured that the dollar will drop again and you won’t be holding on to too many paper assets.

How can I use my 401k to buy Gold and Silver?

Your employer may restrict your 401(k), investment options. You’ll need look into the options available to you. Typically, your 401k investments can be withdrawn to buy gold and silver.

Many experts compare the current conditions to 2009’s stock market high of 14,000 point. People held on to their stocks at that time, and six months later, the stock exchange went from 14,000 point to 6,700 points. Many people lost more than half of their retirement savings. It happened five year ago, and it is possible that it will happen again.

What You Should Do

If your 401k is from a company that you have left, you can roll it over to a Traditional IRA. You can buy Gold or Silver with your 401(k), once they have been deposited to an IRA.

You may be able to transfer funds from your 401(k), even if you are still employed by the company hosting it. This is known as an “in-service delivery” An “in service distribution” isn’t a loan. It is a distribution that is actually a distribution of funds. The funds can then be rolled over to a Self directed IRA within 60 days without any tax consequences. If your plan allows an in-service delivery, you will need to inquire about it with your current provider of 401(k). If they do, you can ask them how to begin.

Why Your Advisor Won’t Recommend Buying Gold

Only a few institutions have the ability to deal with the precious metals part of retirement plans. Financial advisors can only be licensed to recommend publicly traded securities. They have not received any training. Some advisors may recommend mining stocks and precious metal Exchange Traded Funds (ETFs), but investing in ETFs is different from investing in precious materials. Precious Metals are tangible assets. ETFs are just like other paper assets. They’re vulnerable to the same factors as stock market volatility, inflations, and corporate fraud.