The stock market can be a place to get great returns over time for some people owning a 401k but it is also prone to periodically take a sickening dive. Since you can never be sure exactly what is going to happen next with stocks, all investors should make a point of diversifying their assets. While some of your money can be in the market, it is also a good idea to have other portions liquid, in property, or invested in commodities. One of the options available is to put your money into Gold bullion, that´s when rolling over a 401k to gold become a great choice.
Is It A Smart Decision To Convert A 401k To Gold?
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Gold has been precious and valuable for thousands of years. At least as far back as ancient Egypt it has been a symbol of wealth and power. In the modern world it is still valuable for its own sake, but also an important component in manufacturing electronics. It has been a stable investment for as long as human history has been recorded. You can take advantage of this fact if you move some of your 401k to gold investments.
How does it fit into retirement planning?
A Gold 401k investment is a good way to keep a portion of your money very safe. Where the money you have in the stock market might rise and fall a great deal from day to day, the value of any gold in your portfolio will tend to be comparatively stable.
Maybe you don’t know it but, gold has lost at least 11% of his value in the last year. Some self-claimed investor “gurus” on newspapers and portals are saying things like “The crash in gold is a reminder that commodities are for traders, not investors” or “Investors wonder how bad the current gold bear market can get”.
All that I can say is…bullshit…simple as that.
Some experts conclude that the gold spot price have been manipulated the last months by Federal Reserve, US Exchange Stabilization Fund, in order to gain advantages buying and selling gold futures in the short term. Current gold spot fall down is due to the speculation, nothing else. But since the current money (the money you and me own) has been created by gold, this commodity always will be a hedge against inflation and a secure source of profits.
For your 401k, you have to decide for yourself how much of your money you want to move into gold. As you approach your actual retirement years, you should keep a larger proportion of your funds in safer investments like this.
How do you Roll 401k into gold investments?
You can theoretically withdraw the money from your account and then deposit it in another one. Please don’t do this…There are a few reasons, though, that this is a bad idea.
- Your employer is required to withhold 20% of the money to make sure the taxes will be covered.
- You have a 60-day limit to get the money into a new retirement account.
- If you are overdue moving the money, you can be subject to a 10% penalty for early withdrawal (if you’re under the age of 55).
The tricky part here is that your employer holds onto a portion of the money, but the full amount has to make it into a new account or you will be charged a penalty. It is safer and easier to contact a gold IRA custodian and fill out the paperwork to have them transfer the money directly from your old account into their keeping. This way, nothing is withheld and there is no risk of penalties. You basically sign an e-paper that gives them permission to take over control of the money, and let the IRA company do the hard work.
Can you open your own retirement accounts and put money into gold?
Absolutely. You can open a Roth Ira, for example, and invest in gold so long as that is an option that the investment company you are using offers.
Moving a portion of the money in your 401k to gold investments is an excellent way of diversifying your assets and protecting yourself against the frequent shifts of the stock market. While your other investments may change radically from one day to the next, gold has been exceptionally valuable for thousands of years and prices are only continuing to rise.
Remember you can get guidance on this process. For example, Regal Assets is one of those top leading gold ira custodians you can contact right now and start asking questions. In fact, by this month, they are giving away a free gold investment material where you can get:
- A free physical DVD that reveals the hidden secrets of the Federal Reserve (incredible but true…)
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- Discover the closely-guarded secrets of the precious metals industry, and gain an edge over gold sellers before you contact them.
- Unlimited access to your personal gold investment advisor. They are there to answer all your questions and guide you in the right direction. I know their mission is to arm you with the information you need to make your own decision about gold investment.
- Learn how gold could not only safeguard your financial portfolio, but could triple your savings in the next 1-2 years.
People are rolling over 401k to gold and taking this chance to self protect against bad times and of course let their money make more money. Why you not?