In these uncertain economic times, many Americans are concerned with the protection of their retirement savings and, effectively, the protection of their financial future. The volatility of the stock market and the declining purchasing power of the dollar have many considering purchasing gold with their 401k to safeguard their retirement and financial future.
Buying gold with 401k is an easy process – all you need to do is roll over your 401k into a precious metals IRA and allocate funds to invest in gold. If this sounds like a difficult process, it doesn’t have to be – we’ll go over it step-by-step.
Speak to a precious metals specialists
Seeking advice of an experienced precious metals specialist, from a reputable company like Birch Gold Group, will help to simplify the process. They can answer any questions you might have and help you determine whether your 401k is eligible for the conversion. Many will also guide you through your options, help you with paperwork and answer any questions you might have along the way.
Set up a precious metals IRA and roll your 401k over
You will need to set up a self-directed precious metals IRA – it will allow you to transfer as much funds as you feel comfortable with towards purchasing gold and other precious metals (should you choose to diversify your portfolio even further). You can transfer all the funds from your existing 401k into your new IRA or just a part of it, whatever you feel comfortable with. Your precious metals specialist can help you with all the necessary steps to open your IRA.
Choose your type of gold
Once the funds are available in your new IRA, you can choose which type of gold you want to buy. Two types are available for IRAs - bullion and proof. Bullion gold’s value is determined by the gold content and weight. Proof gold coins, however, are produced in limited quantities each year so another factor that determines their value is their rarity.
You can further diversify your retirement portfolio by investing in other precious metals, such as silver, platinum and palladium.
A precious metals specialist can go in depth over each available option and their benefits in greater detail and help you decide which one is right for you and your particular situation.
These are the basic steps it takes to buy gold with your 401k, but every situation is different, so it’s strongly advisable that you seek help from an experienced precious metals IRA specialist at Birch Gold Group. They can answer any and all of your questions about converting your 401k into physical gold and make sure you are confident about your investment.