Gold 401K Investing
It’s smart for you to consider the best ways to invest and save for your retirement during these uncertain times. It’s also natural for you to want to choose the most advantageous method. Many employees offer 401k plans to their workers, and the workers benefit significantly from their contributions. You may have a 401k already, or you might be thinking about starting such a fund. The traditional 401k plan may not be the most useful option for you, however. Therefore, we want to give you some information about a whole new way to invest in your future. You can use the funds in your current 401k account to invest in this exciting new way, or you can start a brand new account.
The new investment we’re talking about is a gold IRA. A gold IRA 401k is something that you might want to consider to increase your security and confidence over the years. The gold account is a strategy that can help you battle the recession so that you have a solid nest egg when it’s time for you to stop working. Here’s some information about 401k accounts and the benefits of investing in gold for you to review. We can help you take your investment to the next level once you’ve gained a full understanding.
Your 401K Plan and How It Works
A 401k is a common retirement account that many employers offer their workers. Workers elect to have a percentage of their paychecks deducted to the 401k account each pay period. The employer matches the amount of those contributions to a certain percentage, usually up to 6 percent. The money generally stays in the account until the worker is 59 1/2 years old, or until he or she departs from the company. The individual can also apply for a loan against the 401k or a hardship withdrawal. Such retirement accounts can grow or decrease with the state of the market.
The Benefits of Having a 401K
The 401k retirement plan has many benefits. First, it’s beneficial because it accrues “free money.” The employer contributions build up each pay cycle and help grow the retirement fund. Secondly, as a taxpayer, you have access to certain deductions. All of your contributions are pre-tax contributions. Therefore, the IRS will not count them as taxable income.
Another benefit of having a 401k is that you can save for your future comfortably. The money comes out of your check before you get a chance to miss it. If you grow it properly, you can live stress-free once you reach the age of retirement. If something comes up before then, and you need to pull money from the account, you can apply for a loan. The interest is very low to take a loan from your 401k, and the repayments come directly from your paycheck.
401k Regulations and Limits
401k accounts have limitations and regulations on them. According to IRS rules, you can only put $19,500 in your account per year as of 2020 if you are under the age of 50 years old. That amount can go up to $26,000 if you are over 50 years old. Furthermore, the total combined contributions of you and your employer cannot surpass $63,000 in one year.
The Problem With Classic 401K Accounts
Although the classic 401k is a beneficial investment, it doesn’t come without flaws. For one, there are many fees attached to a traditional 401k. You may come across fees such as processing fees, membership fees, administrative fees and the like. If you apply for a hardship withdrawal or loan, you may also have to deal with application fees. Another problem with traditional 401k accounts is that you may only have limited investment options. Your employer chooses those options for you. Therefore, the quality of your investment options may be low for your specific plan, and you could end up losing money.
Furthermore, you won’t have the freedom to access your funds that you might want to have. You will not be able to pull money out for an emergency without applying for a hardship withdrawal or loan, and even then, you must meet the criteria set forth by the company. Putting your 401k money into gold may give you a more stable foundation and decrease a lot of the risks associated with a traditional account.
Secure Your Retirement With Gold
Gold is a precious metal that is still desirable and has become consistently more valuable over the years. If you invest in gold, you won’t have the same troubles, such as inflation and debasing. Gold isn’t something that the government can make at the drop of a hat like the paper dollar is. Therefore, it will remain a desirable rarity, and its value will always be high. If you invest in gold, you can at least count on your retirement account staying the same over the years. Most likely, it will grow, however, since gold prices skyrocket during challenging economic times.
The Benefits of Investing in Gold
An array of benefits come along with a gold investment. As we mentioned before, you can create a hedge against inflation by going that route. When you invest in gold, you get a hard, tangible asset, as well. You own one of the most liquid assets available. That should ease your mind about stability. Gold has a long history of being a high performer over the years. Business entities and individuals still use gold as forms of payment. Companies use it to make some of their finest products. Thus, it will never lose its value the same way that the dollar can. Many people refer to gold as the “safe haven” asset for that reason.
Physical Gold vs. Paper Gold
There are two main types of gold in which you can invest. They are physical gold and paper gold. Paper gold is a term used to describe using your 401k funds to invest in mining companies or purchasing mutual funds that include stocks from mining companies. Physical gold is gold in its physical form. Physical gold includes coins, bars, rounds, and so forth.
There are many types of gold that you can invest in. The risk is higher when you invest in paper gold than it is when you invest in physical gold. You generally cannot invest in physical gold with a classic 401k, however. That is why it’s necessary to roll your 401k over to a gold IRA or a self-direct account.
Other Precious Metals
Silver is another precious metal that may interest you. It’s not as expensive as gold is, so it can be the perfect investment if your funds are limited. Other metals that you can consider investing in rare metals such as platinum and palladium. All of these metals can give you more certainty that paper dollars can give you. You can speak to an agent about each of those options and decide once you gather more details.
Types of Precious Metals to Invest In
The government has regulations on the types of metals that you can buy with your IRA. Examples of some of the gold items you can buy include items such as American Eagle gold coins, Chinese Gold Panda coins, Canadian Gold Maple Leaf coins and British Gold Britannia coins. When it comes to silver, you can purchase American Silver Eagle coins, Sunshine Mint Silver rounds, British Silver Britannia Coins, Mexican Silver Libertad coins, and so on. An investment specialist can provide you with more information about what’s allowable when you get ready to invest.
How to Buy Gold With Your 401K
The process of buying gold with your 401k is rather easy. The first thing you must do is find out if your account qualifies to roll over into an IRA account for gold. Most employer-sponsored accounts do not allow this as long as you are employed with them, but there may be an exception. Therefore, you need to speak with a representative about any limitations your 401k may have on it. You might have the option to switch to a self-directed IRA. If you are self-employed, and you have a solo 401k plan, then it’s highly likely that you will qualify to roll your 401k over to a gold IRA account.
Once you obtain approval to rollover your 401k, the next step is finding a gold custodian and opening up your IRA. Once you have your IRA account open, you can complete the paperwork with your current 401k company and start the process of rolling over the funds to your precious metals IRA account. You can either do a direct rollover or an indirect rollover. The direct rollover is the simplest way to do it, and it poses fewer IRS penalties. The money will go directly from your 401k account to your precious metals account.
An indirect rollover is a little different. You would first withdraw the funds from your 401k account. Then you would use the money to fund your precious metals IRA. Doing it indirectly will leave you vulnerable to IRS penalities if you still work for the same employer, and you are younger than 59 years old. You will have 60 days to finish your process from the date of the withdrawal. If you do not put your money into an IRA as you stated you would, the IRS may penalize you with taxes. You should go through the process of conducting a direct rollover to be on the safe side.
How to Be Sure Your Gold Investment Is Safe
Your money is your life’s work. Therefore, you’ll want to ensure that your gold investment is safe. Your investment is as safe as the companies that you choose to be custodians and advisor. That’s why it’s important not to make any moves in haste. Always conduct research and ask as many questions as you need to ask to ease your mind about the money you’re going to invest in. Choose a company that has a strong reputation and has been serving the community for years.
Qualities of a Reputable Investment Company
The best way to ensure that your investment is safe is to choose a reliable company. You’ll need to take certain steps to protect yourself before you do business with any company. Three qualities that you’ll need to look for are tenure, client satisfaction, and accreditation. You’ll need to make sure that the company you choose is connected to and approved by reputable organizations such as the Better Business Bureau. You should also use a provider that has awards and accolades.
Tenure means a lot when it comes to investments and precious metals. A company that has been around for decades is likely to have knowledgeable experts who will always steer you the right way. These persons will know the best moves for you to make so that your money will always grow. Finally, you need to review consumer reviews. They will tell you a lot of information about the personal experiences that people have had with the companies that you’re considering.
Read the commentary and testimonials and look at the star rating for additional information. Speak with a representative before you make your final decision. The brief conversation you have with the representative will tell you a lot about the company’s integrity and customer service focus.
Start Investing in Gold Today
Now you’re much wiser about putting your money in gold and why it can be beneficial to you. The next step is to speak to an advisor so that you can start your investing journey. You can feel free to sign up for your gold IRA 401k today. This video explains some of the benefits of having gold in your portfolio.
It’s best to have a professional help you with your gold investment journey. Going to an agent instead of trying to handle it yourself is the best way to keep your investment secure and give yourself the peace of mind you deserve. Our specialists have extensive training and experience in precious metal investment. You can have 100 percent confidence that they will steer you in a direction that will be advantageous for you. Furthermore, we care about your future. We want to see your money pay off for you in the end. Our compassion and dedication are the two main qualities that cause people to trust in us every day. Join the team and let us help you with your investment vision.
It’s important that you work with a reputable firm. They will walk you through the entire process and explain every step to you along the way. With our help, you can have a safe and secure gold investment account that can grow today and ensure that you have a bright future tomorrow.