Why Transfer Your 401k to a Gold Backed IRA?

Larry & Curly of the 3 stooges pully warren buffets ears

Are you worried about your retirement savings losing value?

When the next recession hits and the market plummets along with the value of the dollar, are you confident that your retirement investments will be protected?

Wealthy investors know how to protect their assets from market fluctuations and if you are anywhere near retirement you cannot afford another loss like the recession of 2008, you will not recover.

This article will discuss options like the gold backed IRA and other little known investment vehicles now available to everyone that could insulate your retirement savings from disaster if the worst happens.

Gold IRA or Precious Metals Mutual Funds…why choose physical assets?

Over the past several years, many average investors have become discouraged with how their funds have performed in the stock market. Some, still reeling from the economic downturn of 2008 and 2009, are trying to rebuild damaged portfolios that may or may not ever recover their losses.

Many are still leery about reentering a financial market where they lost some – or all – of the assets that they had taken a lifetime to build. This is especially the case for those who are quickly approaching their retirement years. Whether you are considering some of the new metals mutal funds or Gold IRAs it is important to develop a sound overall strategy.

5 Investments for Building – Or Rebuilding – Your Nest Egg

golden egg in a birds nest symbolizing a retirement nesteggFor those who are starting to build -or rebuild – their asset base for retirement, there are certain investments that are important to include in most investors’ portfolios.

This is because most investors need diversity in order to enhance growth, while at the same time reducing risk. The key here is determining how much of each investment will be right for you.

  • Cash / Money Markets – In any portfolio, it is important to have at least some amount of cash. This is because liquidity is often times needed in the case of an unexpected emergency, as well as for investing in various opportunities that may come up.The key here is not to have too much idle cash sitting around, as you could miss out on higher investment returns that you could be earning elsewhere. If you have $10,000 to $100,000 cash to invest consider this option.
  • Bonds – Bonds are another category of investment that many investors need to consider – especially those who are in need of current income. Retirees often will use bonds as a source of safe and regular incoming cash flow.In most cases, younger investors will not need to worry about how to invest in bonds until they get closer to retirement.
  • Stocks / Equity Mutual Funds – Stocks and equity mutual funds can provide your portfolio with the growth that it needs to beat inflation. Here is where most investors will keep the bulk of their funds during their primary earning years.It is important to note, however, that stocks and other equities also carry a certain amount of risk, so it is essential to research each and every investment prior to placing any funds in it. In addition, past performance of any investment does not guarantee future results.Therefore, it is also important to monitor your investments at all times in order to ensure that they are performing in the way that you have anticipated. If they are not, it may be necessary to make some changes.
  • Metals - 24 Karat Gold and other precious metals such as Silver & Platinum, are also important to have in your portfolio. Metals have been known for centuries for their growth potential, as well as for being an ideal hedge against inflation.There are a number of ways that you can invest in Silver & other metals.These include buying them direct from a physical dealer or online, or you could alternatively purchase shares of mining company stocks or shares of precious metals mutual funds.
  • Real Estate – Many investors like to balance out their overall investment portfolio with other tangible investments such as real estate.This can include the purchase of single family homes, duplexes, or even small commercial buildings that they rent out for investment purposes.Real estate can be profitable in terms of monthly incoming cash flow from rent, as well as from the property’s appreciation when you sell.

Should You Consider Alternative Investment Options?

chart indicating self directed iras and other types of investmentsToday, many investors are considering alternative options with both the investments that they choose, as well as the actual account that they put those investment in.

While most investments such as stocks, bonds, and mutual funds can be purchased inside of regular investment accounts, as well as traditional and Roth IRA (Individual Retirement Account) accounts, there are other ways to structure retirement investing that could actually be more beneficial.

For example, there are many investors who are unaware that it is allowable to purchase tangible assets such as gold and other precious metals inside of a special type of IRA account called a self directed IRA. Having a gold backed IRA account can offer investors a myriad of advantages.

This is because all of the benefits of investing in gold – including the opportunity for growth, diversity, and hedging against inflation – are all still present – yet with the added benefit of either tax deferred or tax free growth on the asset’s gains.

Self directed IRA accounts have a structure similar to other types of IRAs. additionally , they have the same rules such as maximum annual contribution limits and early withdrawal provisions based on age.

Yet, a self directed IRA account provides a great deal more control over what types of assets can go into the account – without being restricted to only what a bank or brokerage company has to offer.

This alone can make a big difference in how – and how well – your IRA ultimately performs over time. Because precious metals investments through a mutal fund are subject to market fluctuation, the Gold backed IRA in this respect offers more control and stability in the long term. Having the ability to roll over your 401k to gold a IRA Rollover can be a great advantage not available otherwise.

Properly Allocating Your Assets

retitred couple considering rolling over their 401k into a Gold IRATodays market does provide a variety of solid investments, however, it is very important to have assets properly distributed within your portfolio.

This means that you should ideally start with a good, solid foundation and expand from there with other perhaps more non-traditional investments to balance out the risk. Just as you would construct a home or other structure, your portfolio should include an ample amount of safe assets. And, the closer you are to retirement, the more you should shift away from high risk options.

In fact, the way in which assets in your overall portfolio are allocated, or distributed, coupled with your investment time horizon, will have a direct impact on the total level of risk that you face. With this in mind, if you have a very short time to retirement, you should be taking on much less risk than someone who has more time on their side.

When investing in any asset, be it stocks,gold or precious metals mutual funds, it is important to understand how that asset works, and why you are investing in it. This will give you a better idea as to why the asset may or may not help you reach your financial goals. When you know how to invest money wisely, it can mean the difference between retiring when you plan to, or possibly not being able to retire at all.

The bottom line.

diagram of various  investment strategies Knowing how to invest wisely is the first step to a successful retirement. In order to help ensure that you are on the right track – regardless of whether you are just starting out – or coming into the home stretch – having a thorough understanding of where you are, and where it is you are going, is essential.

Today, investing in average investment vehicles will likely only get you average results at best. Therefore, most investors will need to take an additional step towards diversifying their holdings by adding gold and other precious metals.

Many investment professionals are now recommending rolling over your 401k to a physical gold IRA as one of a few key strategies in protecting and growing your retirement fund.

The gold backed IRA account combines the benefits of gold investment with the tax advantages that IRA investing. Securing your retirement income with these types of investments is a smart choice for most investors approaching retirement.

What we recommend.

While their are many gold companies to work with, one of the most highly rated gold company we are aware of is Regal Assets. There is a lot of helpful information on their website about their Gold Backed IRA options.

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