In times of economic hardship, your assets can go up and down with the trends of the market. Having your hard-earned money in a volatile investment can set you up for a fall. In the last 90 years, this has happened to many people who trusted their regular sources for guidance. Their investments have often ended up disappearing when economic hardships occur.
One change to your current investment strategy that you might want to make is involves a 401k to Gold IRA rollover, which can help you to reap additional tax benefits while protecting much of your income from the volatility of today’s market.
Why Should I Convert 401k to Gold?
The primary reason to convert 401k to gold is to protect against is falling stock market. As a result of the recent upturn in the economy and the spikes in worldwide markets, there are certain expectations that this may in fact be a bubble, and that the double-dip recession could take place. By converting part of your 401k investments to gold, you will be better able to hedge against this possible downturn and take advantage of the rapid increase in the price of gold that often occurs when the stock market goes down swiftly.
How Can You Set Up A Gold 401k Rollover?
There are a few different options that you have when it comes to using gold as part of your 401k investment plan. If you have any existing retirement account, then one of the easiest ways to do this is by rolling over the entire balance into another account. This will help you to preserve the tax benefits that you have already been assured, and it also takes the retirement account out of the hands of your employer.
This is called a direct 401k rollover, and is a very easy transaction to accomplish. It will also help to prevent you from having to worry about the investment strategies that your company may be making on your behalf.
What Is An Indirect 401k Rollover?
Another way of taking advantage of the tax benefits of a 401k and using gold to your advantage is cashing out your existing 401k and depositing those funds into a new account. This needs to be done with the assistance of a tax professional or a company that is experienced in 401k to gold IRA rollovers, and the entire transaction needs to occur within 60 days in order to avoid any tax penalties.
What is the Next Step in Converting Your 401k To Gold?
Once you have established a 401k retirement account that is not under the auspices of your employer, the best thing to do is to talk to a gold broker who can help you with either the direct rollover or indirect rollover and will provide you with a physical gold IRA account. With the funds in this IRA account, they will be able to buy physical gold on your behalf, which will then provide you with the protection that you need against rapid changes in the stock market.
Is Your 401k Safe Now?
Your 401k is always going to be variable and will go up and down with the changes in our economy. A true benefit of taking advantage of a 401k to gold IRA rollover is that by committing a certain percentage of your investment portfolio into physical gold, you will always be protected against any major economic changes.
The percentage of your total worth that should be in the form of physical gold will depend on a number of different factors, including your age, your total worth, your present day earning ability, and other factors. However, many experts recommend that you put anywhere from 10% to 20% of your IRA in gold and other precious metals, so that you are safeguarded against fluctuations in the economy.
Which is the Best Gold IRA Company to perform the rollover?
In order for your gold investment to be protected from taxation, it needs to be physical gold and it needs to be held by a custodian. In other words, gold jewelry, coins, and bullion that you possess cannot be kept tax free as an investment. If you want to incorporate gold into your IRA, then it is definitely worth getting some advice from a company that knows how to do this and will help to make sure that you are abiding by all the tax laws.
Regal Assets can offer you trusted advice and will show you the best ways to set up a 401k rollover to physical gold or help you to purchase physical gold as a taxable investment. In any case, this company is specialized in precious metals IRA rollover and has been rated 5 stars by Trustlink and A+ by Better Business Bureau.
Regal Assets has been able to help many thousands of people around the country to start making more money by investing in precious metals and may be able to help you establish safer investments.
You can also read our full reviews of other top gold IRA companies.