What is 401 (k)?
The 401 (k) is the tax-qualified retirement plan offered by employers in the US.
In as much as the plan was set up in good faith, an employee has the right to question whether the 401 (k) is the best guarantee of a financially secure retirement, of which the answer depends on whom you ask. For some, it’s the best, and for many others, it’s not.
Rollover your 401 (k) to Gold IRA
A gold IRA or Precious metals IRA is an account that allows you to buy and hold precious metals such as gold, silver, and platinum. A gold IRA works as any regular IRA, with the only difference being that it holds physical bullion coins or bars, instead of fiat monies.
IRAs can invest in virtually any asset, and so, a gold IRA is practically an investment of the IRA in gold. And one of the key benefits of rolling over your IRA into gold is that you become protected against the volatile stock markets.
What are the Advantages of Rolling Over your 401 (k) to Gold IRA?
– Liquidity. Gold and precious metals are among the most liquid assets. You could easily trade gold in exchange for goods or services regardless of geographical location. Of course this is not the case with stocks or real estates or bonds. It’s why most investors are turning to gold!
– A Shield against Inflation. Led by the US, most world economies are suffering high inflation rates at present, characterized by high cost of living. In the last century, before the US government rejected the gold standard and reserved the right to print unlimited amounts of fiat currency, a small unit of money like 20 dollars could be spent on a hell of a lot of products, yet in 2017, 20 dollars is not even enough to buy a meal with decent ingredients.
– Diversification. Precious metals are non volatile investments, and that’s why financial advisers recommend allocation of up to 40% of an investor’s portfolio to gold! Portfolio diversification is a major way of spreading risk from the investments centered on major economic systems.
– Weakening Dollar. The mighty dollar may be the world’s most powerful currency, but it’s on the decline, and it’s estimated that the dollar has lost value by about 45% since the 90’s. That’s a worrying trend. And this is what usually happens before there’s a major economic meltdown. It’d be wise to hold physical gold to enjoy your money’s value.
– Tax-Free Transfer & Roth IRA’s. Moving your assets from your 401 (k) to your gold IRA, you are exempt from tax, and what’s more, you can choose the Roth IRA and enjoy such perks as tax-free growth and withdrawals.
– Appreciating Value of Gold. The price of gold is on the up and up, and industry experts point out that it’s gonna rise until 2030. Considering its increasing value, gold has become a much better investment tool.
– Symbol of Prestige. Owning an item made of pure gold is a symbol of luxury. Billionaires like Donald Trump love gold and always include it in their investment portfolio.
– A Shield from Deflation. Deflation is characteristic of products going at extremely low prices. This happens when there’s an economic meltdown and most people go out of business and their purchasing power goes down. And then joblessness, poverty, and starvation becomes a thing. In such situations, the value of gold appreciates!
– The Great Legacy of Gold. Gold has been in use for thousands of years and has never gone out of fashion! From ancient generations to our founding fathers to present day, gold has always been treated as an extremely valuable commodity. On the other hand, all paper monetary systems have always failed, and the modern fiat currency system is doomed to fail like its predecessors.
– Loss of Confidence in Government. Most governments have lost trust in their own economic systems, and started to buy gold.
The people too don’t have faith in their governments’ ability to sustain them during a major economic crisis, and so, the wise ones are buying into precious metals!