If you’ve spent a majority of your life working a 9 to 5 job for a mid to large size company, you likely have some type of retirement or 401k plan. Most financial advisers will suggest establishing this type of plan and diversifying by investing in various stocks and bonds. These advisers often have both very little interest and understanding regarding the value of gold-backed investing and a precious metals IRA (individual retirement account).
This is affecting people all over the country, as many are now reaching retirement age and coming to the harsh realization that they may not have nearly as much money saved as they once thought. More people are becoming aware of these pitfalls and are taking steps to protect themselves and ensure that they don’t face similar outcomes as the ones described here.
Having a retirement plan does not have to mean leaving oneself susceptible to the devaluing currency of the dollar, or any other loopholes or fees that could compromise the viability of your nest egg. By supplementing a 401k with a precious metals IRA, this can help to ensure that the value of your retirement account will continue to grow, as precious metals like gold and silver are some of the most stable investments and are practically immune to devaluation.
The reason gold is such a reliable and safe investment, is mainly due to the fact that – unlike conventional stocks – it’s value is not in any way dependent on the performance and growth of any particular company. Despite the annual fees for storing these precious metals, they are still a popular and profitable investment strategy that is recommended by many of the top financial experts in the world. It is best to think of investing in precious metal IRA’s as a form of portfolio diversification.
The gold 401k rollover or gold IRA rollover process is tax-free and is also free of any penalties. At this point, you can decide which type of precious metals that you would like to include in your new IRA profile.
It is important to remember that a rollover of either a 401k or paper-based IRA account is essentially a liquidation of whatever is contained in these accounts and you will want to check with your custodian throughout the process to make sure that you qualify under certain exemptions such as financial hardship and other criteria.
Originally a gold-backed IRA was the only type of precious metal that could be used for these types of accounts, however, in 1997, the U.S. Government approved other forms of gold and silver to also include platinum and palladium. Precious metals IRA’s can now be backed by gold, silver, platinum and palladium.
Sources:
https://www.fool.com/retirement/ira-vs-401k-which-is-better-for-you.aspx
https://www.bankrate.com/retirement/ira-vs-401k/
https://www.raremetalblog.com/reasons-to-convert-a-401k-into-an-ira/
