Converting Your 401K to Physical Gold
Retirement is something we look forward to for most of our working life, but it is not always something that we plan for effectively. Ensuring you have enough money to enjoy your retirement is the most important thing you should do while working. There are several ways to ensure that your retirement fund grows as you work, one of which is your 401k.
However, there is no such thing as a safe 401k in a fluctuating economy, and so some employees are choosing to convert their 401k into precious metals to protect their retirement funds. It is sound investment advice to ensure that you do not hold all of your retirement funds in a high-risk investment option like a 401k.
It is far better to roll your investment fund into a more stable investment, such as precious metals.
How to Protect your Retirement Investment
The most concerning aspect for most people planning to move their retirement fund is how to move 401k to gold without penalty or tax charges. There are ways that you can roll over some or all of your 401k into a physical gold IRA without losing part of your retirement fund to taxes and penalties. Completing this task will be possible if you know whom to invest your 401k with and the steps needed to make this happen.
The first thing to note is that although you will see them referred to as gold IRA accounts, this is not because the only metal that is invested in is gold. The second thing to be aware of is that any gold IRA investment scheme you wish to use must be IRA-approved prior to investment.
How to find the Right Gold IRA
In the current economic situation, there are an ever-increasing number of IRA providers who are diversifying into precious metals and offering gold IRAs. Therefore, it is easier than you might think to find a provider for your retirement conversion. With so many investment providers available, you should ensure that you are investing with a reputable firm.
The first thing to do is look at the length of time the company has been open for investments and ensure that it is not a new firm that has been heavily invested in. Secondly, look at the reviews of the current and previous investors with the companies you are considering. Always check reviews on independent review sites for impartial insight into the company.
Then you should check that the investment terms are right for you, check the minimum deposit amount, and if they will accept a full or partial 401k rollover before making your decision. With the provider of the gold IRA in place, you should then decide on the custodian of the precious metal. It is illegal for this to be yourself.
Also read: How to Invest in Gold: An Investors Guide
The gold IRA provider may recommend a company who will be a custodian, and if they have a good working relationship with this company or experience with them in the past, this may be the easier option.
Once the setup is complete, ensure that you regularly check the transaction statements, so you know what is happening with your investment at all times.