Gold IRA Rollover Process Guide – Is 401(k) to gold a good retirement plan?
We have been using gold as a currency for many centuries. In fact, the very first coins made of gold were struck in Lydia, Asia Minor around 600BC. The precious metal has had tremendous influence throughout history. Gold has caused wars and expressed love. Gold was a highly sought-after commodity by numerous explorers and has altered the course of many civilizations.
Today, gold still plays a critical role in the marketplace and is the most appealing precious metal. Gold is still a mark of wealth and prosperity because of its rarity and perceived value. Since 2001, the price of gold has risen more than 4 times in relation the US dollar, reaching a high of $1,913.50 in 2011.
Gold will continue hitting record highs in price for many years to come in case of the following:
- Failure of Currencies
- Failure of the Stock Market
- Higher Unemployment & Foreclosure Rates
- Continued Rising of Inflation & National Debt
Due to the rejuvenated momentum of gold, it is still viewed as a solid investment strategy, when paper currency has proven to be anything but stable. Gold has a reputation for offering protection against devaluation of paper currency and various other negative effects of unsound policies and government overspending. The gold IRA rollover is gaining in popularity among investors for providing protection of the retirement accounts or those that would like a more diversified and safe portfolio.
It is highly recommended that you download the gold scams conspiracy guide below about the importance of gold and the history of hyperinflation before you continue reading this gold IRA rollover guide.
Gold IRA Rollover Review
If you want to roll over your existing 401(k) or IRA to a self-directed account that contains gold and silver, you should remember that all precious metal companies offering these services are not equal. It’s important to do your due diligence, and research them, before making a choice, or you may be putting your entire retirement account at risk.
After you’ve reviewed the companies, it’s important to ensure that they are reliable when protecting your retirement. Our team picked Regal Assets because of their customer service, storage fees, reliability, transparency, flawless run-rate for years and their ability to protect retirement assets.
Regal Assets prides themselves on delivering on their promises, making sure your customers are satisfied with their end-product and operating a first-class business. They offer a 7-day delivery guarantee. When it comes to shipping gold, this is very rare.
If you are looking for additional justification for investing in gold, look no further than the stock market. When considering the security that a gold IRA rollover provides, consider the recent trend of the New York Stock Exchange. In October 2007, the Dow Jones Industrial Average, reached its peak and closed at 14,164. Quickly after, the Great Recession of 2008-2009 followed causing it to drop to 11,000 in April 2008. The Dow Jones continued plummeting finally reaching a low of 7,552 in November 2008.
This was obviously horrifyingly painful for all investors whose retirement funds depended on those stocks. Shareholders started rushing to exit the market. Many stockholders experienced total loss in the value of their investment. In contrast, the decline of the Dow never affected investors that opted for gold IRA investment.
Experts are still predicting another crash in the offing thus making a gold IRA plan increasingly attractive. Continued warnings regarding the recent bullish markets point towards an end in the offing and that investors should start seeking other vehicles, including precious metals including 401k and gold IRA rollovers. This is especially relevant to the people near retirement who would be devastated by a large drop in the value of their portfolio.
Benefits of 401k to Gold IRA Rollover
By relocating your 401k or any other retirement instrument to a precious metal investment like gold, you get to protect your portfolio’s value against any devastating drops characteristic of other investment vehicles. Once the price of gold rises, it has a negative effect on the overall health of the economy and is indicative of a threat to the international economic stability, such as wars or oil supply disruptions. It makes sense to invest in gold in these times since it involves minimal risk and is largely unaffected by such factors.
In 2011, the price of gold rose 32.8, which was preceded by 2-digit increases in all previous years starting 2008. The increase is primarily a consequence of investor activity in the precious metal market in form of gold IRAs along with other vehicles that retain value regardless of the general currency supply. The sustained investment of this type eventually drove up the price of gold by over 50 percent in September of 2011.
Gold exposes its real significance as a protection against devaluation in case of high inflation offering returns of over 130 percent. Compare this to the 12-percent return, which is the average stock market gain. In times of inflation over the last decade, gold more than doubled in terms of value.
Gold Backed IRA Rules
Investing in gold IRAs is similar to other individual retirement account vehicles. The key difference lying in the actual physical gold held by the account rather than paper currency. You need to transfer your current 401k or IRA via an Internal Revenue Service approved rollover procedure. It is tax-free. Your gold will be stored in a secure location until you choose to act upon it by either selling it for cash or having it shipped to you.
It is not hard to use standard retirement funds for your gold IRA. Once you decide to move your 401k or a different retirement account, you simply find an appropriate gold IRA rollover company to undertake the transfer and become your investment trustee.
Your gold IRA retirement funds will be in custody of the company you choose and it will offer you different asset plans to choose from. All you need to do is fill out the required paperwork to open your personal IRA with your custodian of choice. Write to your custodian of choice and inform them of your decision to have the existing 401k or IRA funds transferred into your new account.
Standard IRA Vs Roth IRA Gold Rollover
You can choose either a Roth IRA or standard IRA. In the standard IRA, your funds are invested in a tax-free manner until you choose to withdraw them. In the Roth IRA, rollover is typically applied once taxes have been assessed and can then be withdrawn free of tax. In either option, you must have complete the transfer of funds within 60 calendar days of the funds being removed from the original IRA to avoid the large fines or fees the IRS usually imposes.
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