For many people, their 401K is the one (and usually only)
nest egg they look forward to relying on during their retirement years.
Although the 401K has traditionally performed for some individuals, it may no
longer be enough. For one, 401Ks depend on movements in the stock market and we
all know how volatile the stock market can be. It could perform well one moment
and badly the next. What this presents is a highly unstable future that could
make retiring a challenge for you.
You could consider other ways to save up
and ensure a comfortable retirement with a gold IRA investment. In fact, you
could switch your 401K to Gold IRA to enjoy higher returns on your investment.
By rolling over your 401K to a Gold IRA, you are protecting your funds and
boosting your finances to prepare for retirement. It is simple and very
straightforward – a solution that will help you enjoy a stable, worry-free
Although there are ways to save your money using a gold IRA,
we recommend a rollover because certain tax benefits are not available with
other options. Now, your next step is finding the best gold IRA company to
401k To Gold (IRA) Rollover Guide – Choose The Best Gold
Our #1 Choice
Goldco is our No. 1 choice for many reasons. It is currently
the leading precious metal IRA company in the industry with more than 10 years
of operational experience. It also has a topnotch customer support system that
ensures fast and informative action to its clients. The company even offers
additional resources such as e-books, videos, and information about the latest
gold prices to help clients navigate the sometimes confusing world of
Goldco charges affordable annual fees for gold IRA
investors. Once you decide on rolling over your 401K to a Gold IRA, the company
will send you a free rollover kit so you can begin investing and managing your
IRA. With its stellar service, Goldco has maintained a constant A+ rating
courtesy of the BBB (Better Business Bureau).
Augusta Precious Metals has won multiple awards because of
its good reputation and excellent performance. It offers a number of top gold
IRA options for clients to choose from. They do require a minimum amount of
$100,000 to start a gold IRA, which may seem a little steep for some individuals.
However, Augusta offers a number of benefits. Their annual fees are lower and
you can enjoy fast and reliable customer service in case of queries and
clarifications. The company will even match a competitor’s price for gold coins
Because Birch Gold Group
is well-established in precious metal investment, they have already
built a streamlined system that ensures quick response to clients. Over the
years, the company has maintained top ratings for their gold IRA products. With
20 years under its belt, Birch Group has handled more than 10,000 accounts, which
only means one thing – it is trusted by its clients.
Once you have enrolled as an investor with Birch Gold Group,
they will even help you choose which bars and coins are perfect for your
investing needs. They also offer a number of resource materials to help you
improve your financial knowledge. Each year, Birch Gold Group releases a
knowledge kit for free to keep their investors on top of things.
What is a 401K Account?
A 401K is a retirement account you can build by contributing
to it regularly. This account is sponsored by the account owner’s employer. One
of the key advantages of a 401K is that the employer matches a portion of the
funds that you contribute. Plus, you get to enjoy lower income taxes for the
duration of the period of your contributions.
Are There Disadvantages to the 401K Account?
The 401K has certain drawbacks. Since it depends largely on
the performance of the stock market, the funds you will receive when the term
ends will be affected by the fluctuations in the market. If the market happened
to perform badly and you happened to invest plenty of assets into the fund, you
could stand to lose big.
Another drawback is that the 401K is tied to employment. If
you lose your job or resign and become self-employed, you will no longer enjoy
the matched amount that your employer pays. You could switch your 401K to an
IRA after your employment but you could do better by rolling it over to a gold
Gold IRAs: What You Should Know
A gold IRA is an individual retirement account that allows
you to invest in precious metals using different methods. For example, it is
possible to invest in stocks linked to certain types of precious metals. You
could also invest in the metals themselves by buying physical gold coins and
bullion. Other than gold, you may also choose to invest in other types of
precious metals, including silver, platinum, and palladium.
Once you have made the decision to roll over a 401K to a
gold IRA, you could choose to have the IRA kept as another account, not just as
a retirement account. A gold IRA is different from other types of IRAs because
it is secured against physical gold, which has proven to be historically
stable. Precious metals IRAs are also more affordable compared to mutual funds
IRS Advisory Regarding Gold iRAs
It is important that you are familiar with IRS laws and
regulations regarding gold IRAs. This is why you will need a custodian or
broker. It is in your best interest to invest with a company that is
knowledgeable in this industry. Gold IRA experts such as Goldco are not only
well-versed about precious metal investing but they also know and understand
requirements imposed by the law.
Transfer or Rollover?
You may hear of rollover being used interchangeably with the
term transfer but they are actually different. When you rollover an account,
the 401K fund is first turned over to you. It is then deposited into an IRA
account. In a transfer, the cu0stodian of your 401K performs the transition by
sending your fund to the gold IRA account custodian. By depositing your 401K
fund into a gold IRA account within the required 60 days, you can avoid being
charged withdrawal fees.
The rollover process has a number of stringent rules that
may be difficult to follow. However, you can enjoy a simpler process by opting
for a transfer, since there are no special fees or penalties charged. When you
have set up your gold IRA, your 401K account custodian can then send your fund
to the new precious metal custodian via wire transfer.
Why You Should Invest in Gold
Gold IRAs offer excellent tax benefits. Any contributions
you make to your accounts will be considered as a pre-investment tax payment.
This means that taxes will only be applied when you withdraw. You could also
choose to grant your precious metal investment to a beneficiary without being
charged an inheritance tax. On top of that, you enjoy greater freedom compared
to other forms of retirement investments.
Another key advantage is that you can potentially sell your
investment at a better price compared to your purchase price. To protect your
assets further, you could opt to diversify your portfolio by investing in
gold-related products such as ETFs. This will allow you to reduce risks
associate with stock market fluctuations.
Benefits of a Gold IRA Account
-making investment decisions on your own. Choose from
precious metals, bonds, real estate, and/or stocks. With a 401K, you do not
make investment decisions by yourself.
-enjoy lower fees. The rates associated with gold IRA
accounts are reasonable.
-enjoy easy accessibility. You could withdraw your money at
any time with a precious metals IRA. However, it will cost you in that you will
be charged a fee. But then again, you still get the assurance that you have
access to your funds at any time you wish or need them.
-choose your trustee. You have better freedom at choosing
which platform to choose from when investing your money. You get to enjoy 24/7
customer service support, a variety of tools for investment, and lower fees.
What Fees Do I Pay?
Like other types of IRA accounts, there are fees you need to
pay for when you roll over your 401K to a gold IRA. These include:
Annual Fees – Surprise! Your costs remain low because you do
not pay annual fees when you invest in gold IRAs.
Load Fees – Some mutual funds come with a whopping 3% load
fee. If you keep your funds, you avoid paying these fees.
Management Fees – If you allow a robo-advisor to manage your
gold IRA account, you can enjoy yearly management fees as low as 0.25%.
This content was originally published here.