A self-directed IRA can offer you freedom. Want to know how you can diversify 401 (k) and make investments less dependent on the economy? Consider turning 401 (k) rollovers into a gold IRA with access to precious metals investments. To withdraw from a Gold IRA without penalty, you must be at least 59.5 years of age. Once you reach that age, you can either withdraw and take possession of your gold investments, or liquidate those assets and withdraw their value in cash instead.
The short answer is: No, you can’t invest directly in gold with your 401 (k). The 401 (k) stocks sponsored by the employer are generally managed by third parties and offer only limited investment options. So you can’t just invest in physical gold and other alternative assets. If you decide to invest in a precious metals IRA, you should do so conservatively.
Depending on your financial situation, most experts recommend investing no more than 5 to 10% of your retirement savings in precious metals. You can transfer your money to a gold IRA or gold exchange plan in three months or 60 days with no penalty, giving you complete control over what is normally blocked until a later date. While investors flock to them when times are tough, they’ve been as volatile as stocks in the past. While gold, silver and palladium are subject to their own forms of volatility, many regard them as superior long-term investment options to maintain and increase values.
People can use part of their pre-tax salary for long-term investments, with many employers offering to contribute some or even 100% of the money invested in the plan by employees. You can also convert your 401 (k) into a self-directed IRA, subject to the permitted conditions, where you can then invest directly in gold bars and coins. You should work with a reputable company that has experience with Gold IRA rollovers and can provide competitive pricing and excellent customer service. For employees who participate in such a plan, one of the easiest and most cost-effective ways to get exposure to gold is to invest in Exchange Traded Funds (ETFs).
Millions of Americans are offered by many employers and rely on these tax-advantaged investment plans to spend their retirement years comfortably. The company’s experienced team can guide you through the process of investing in gold or silver safely. Gold IRA companies vary in terms of experience, service, and costs. So take a look around and compare your options before you proceed with opening an account. In any case, remember that precious metals and precious metals funds should only add a bit of sparkle to your retirement plan and should not become part of your overall investment strategy.
If your 401 (k) doesn’t offer direct access to gold investments, you may still have some flexibility to invest in gold through mutual funds or exchange traded funds (ETFs). First, you should meet the IRS or Internal Revenue Service requirements to qualify to switch your retirement savings to a Gold IRA. A 401 (k) plan with brokerage option gives individual investors the freedom to invest in a much wider range of assets through a regular brokerage account, allowing access to all types of gold investments. The fund invests primarily in gold exploration, mining and manufacturing companies such as Barrick Gold, Newmont Corporation, Franco-Nevada and Agnico Eagle Mines.
If you’re not sure whether owning physical gold is the best use of your money, consider talking to your financial advisor or accountant.