How to Convert 401(k) to Gold IRA: How Gold Can Protect Your Retirement

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Published: 28th November 2016
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You worked hard and you saved hard. Your retirement represents your life's labor and it's one of the most precious investments you'll ever make. Don't leave it unprotected in the next market disaster!
At present record highs the stock market may not be the best place for your money. Would you believe that there's an investment out there that has outperformed the stock market in the last 20 years by a ratio of 4 to 1?

There is and it's gold.

Right now, with the market at an all-time high and gold and silver at a year and a half low, there is a tremendous opportunity for selling high in one market and buying low in another. With its present bullish outlook, many savvy investors are looking to get as much exposure as they can with these two precious metals and you should too. Because precious metals have traditionally moved counter to equities and mutual funds, they can be an excellent way to invest to help protect your retirement portfolio. Gold and silver offer protection, growth, and a long term stability that no other investment can offer.

If you have a 401(k) retirement savings account, converting it to a gold 401(k) or silver 401(k) could be one of the easiest ways to gain the protection of gold and silver with no cash out of pocket!

There's No Better Time than Now

There is no better time than now to make the transition to precious metals. Current conditions are being compared to the prosperous conditions of 2009 when the stock market was at a high of 14,000 points. At the time many thought that the market might continue on a high for years to come, but six months later the market dropped to 6,700 causing many to lose as much as half of the value of their retirement accounts.

It happened five years ago - and as we all know history tends to repeat itself - it could easily happen again.

Be certain, the next time the dollar drops you don't leave yourself overexposed with paper assets!

How Can I Convert my 401(k) into Buying Gold or Silver?

To see what options are available to you, you'll need to look into the restrictions of your employer's 401(k) plan. Most often the case is that you can cash out your 401(k) assets to buy gold or silver just as would with any other investment option in your 401(k). In most cases the transition is quick, easy, and seamless.
If your 401(k) is from a company or companies for whom you no longer work, then you can roll over those funds into a Traditional IRA. Once your 401(k) funds have been deposited in an IRA, they can be utilized to buy Gold or Silver.

If you no longer work for the company or companies that created your 401(k) account, it may still be possible to free up those funds for a rollover. If this option is available to you it is called an "in-service" distribution." What's best about "in-service" distribution is that is an actual distribution of funds that can be rolled over (within 60 days) and not a loan. This distribution can be converted to a Self-directed IRA account without any tax consequences. With this option, you would have to ask your current 401(k) provider if its plan allows for in-service distribution. If available, ask them how to get started and they'll guide you through the process.

Don't Look to Your Financial Advisor to Recommend Gold

My financial advisor has never recommended gold or silver, why should I believe in it as an investment? The reality is very few institutions are set up to handle the precious metals component of retirement plans. For that you have to consult a specialist. Because of the restrictions of their license, financial advisors are limited to recommending only publicly traded securities. Instead of physical gold or silver what they may do instead is recommend precious metal Exchange Traded Funds (ETFs) or mining stocks. Unfortunately for the investor, ETFs and mining stocks are not the same as investing in precious metals. Precious metals are tangible assets. ETFs, like any other paper assets, are susceptible to the same issues of volatility of the stock market, inflations, company earnings and corporate fraud.

How to Get Started

While investing in a Gold IRA is basically a simple process, there are important things that every prudent investor should know. You'll want to avoid unscrupulous dealers and unethical companies. In order to do that you'll need answers. The best place to get those answers is in downloading our FREE mini-course entitled "How to Invest Your IRA into Gold and Get Rid of Financial Worries for Good." This powerful course could save you missteps and thousands of dollars and is filled with tips and expert advice you need to make the best possible decisions for you.

Leaving yourself exposed for the next market crash could have dire consequences. Don't let your retirement go unprotected!

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