Best Way To Rollover A 401k/IRA Into Gold And Precious Metals?
It’s no secret. The U.S. Government is out of control.
Inflation continues to climb and its reporting is manipulated by the Feds every week.
We are told the economy is getting better but why is underemployment still in the high double digits? Why are college graduates with expensive degrees still flipping burgers or lining up for welfare?
These are the ever growing signs that our financial system, the bedrock of civilization for 100’s of years, is finally coming to an end. Will you be able to protect your family and loved ones from the coming crisis?
Will you be one of the survivors who THRIVED during the 2008 recession?
Or will you become another victimized statistic? A mere pawn by the big banksters and crooked leaders who claimed to have our best interests at heart, but didn’t. They bailed themselves out and left America the tab for their stupidity and carelessness.
The ones who avoided getting creamed in 2008 and protected their family from financial incompetence were the savvy investors who took matters into their own hands.
Individuals who were just like you.
As you may not already know, what they did was invest in the history’s only true money, gold. Precious metals like gold and silver have been valued by humans for as long as history was recorded, or when man learned to write. There’s just something intrinsic and believable about gold that fiat currency like the U.S. dollar can never hope to match.
It only makes sense to place your financial well-being, and that of your family, on such a solid bedrock.
If you’re wondering if it’s just you investing, it’s not. Even billionaires are getting gold fever. They too believe our financial system is beyond hope and are looking for ways to protect themselves, their friends, and their families.
You should too.
The problems we face are a really a failure of our economic system to teach what economics really is. It doesn’t help that today’s teachings are based on the socialist, scarcity-minded indoctrinations of John Maynard Keynes and the like, which basically states that:
- There isn’t enough money or “stuff” to go around (not really true)
- Governments going into debt is a good idea to spur the economy (flawed)
The first occurs because people are taught to take things of value rather than create it. When you have too many people like that running around, let alone run the government, the net result is always taking from group to give to another. Robin Hood would have been happy, until it was his turn to get stolen from.
And round and round the stealing goes on, as the people get angrier and angrier and our economy suffers as a result.
The second flaw, the idea that growing government debt is good, is a relatively new theory in economics that clearly does not work. While it started with President Ronald Reagan to combat the communists in the former USSR, the legacy continued with every future president because our society has become much more instant-gratification oriented, without thinking about the future consequences for that gratification.
So how does this relate to gold and silver? It’s simple, this is the cycle of how booms and busts occur. When our debt and ability to borrow (currently at excess of $1 trillion dollars per year) ceases, we will have no choice but to print even more money or do extreme amounts of quantitative easing, which will lower the dollar’s value over time.
This will result in inflation which makes all non US dollar denominated assets worth way more to purchase, nominally. Its value isn’t increasing but your purchasing power is decreasing, hence the major price increases. Precious metals does an excellent job of reflecting this price increase as all this economic chaos continues.
So Why Precious Metals? What About Other Alternative Investments?
The problem with every other asset class out there is that they are based on either:
- Financial Leverage (debt) or
- Fiat (Fake) money
Because assets are leveraged, a drop in the value of the dollar will cause assets to drive itself up in nominal pricing. For those who have adjustable rate type of debt, the interest payments made on the inflation resulting from the original debt to acquire such said assets will also go up. However, the income you originally received from your assets doesn’t keep up with inflation immediately.
This lag between your former income and the new debt payments you have to make becomes too wide and you will eventually be unable to pay it off unless you borrow more money, which of course just increases your debt payments every cycle.
Eventually, you will lose and have to declare insolvency. Most assets in this world operate in this manner in some form or another, so unless people can de-leverage (which isn’t happening) slowly over time, there is no stopping this collapse. We’re all on borrowed time and money.
People who buy precious metals are inherently solvent and do not use debt to buy. There’s no point because precious metals itself pays no income of any sort. While this is a major “reason” why gold is such a bad investment, you should see this as the glass half full and half-empty analogy.
Yes gold can’t produce income or pay dividends, but it also can’t go down as much as everyone else’s assets because it has no inherent leverage or demand due to this fact. People always worry about how to maximize their returns during the best of times but investors RARELY ever think in terms of how to MINIMIZE their losses during the worst of times.
What about fiat-currency based assets like say real estate or stocks?
Chances are these assets are providing income of some sort, like dividends from stocks or rental income from real estate. If someone is paying you these things, they are indebted to you. As from above, when someone can’t pay, the person receiving that income can’t pay his or her debtors, which eventually flows down to you. And when you can’t pay back everyone else due to loss of income, you’re kind of screwed.
That’s basically what happened in 2008 and 2009. The government stepped in to pay for the debts of all the greedy and lazy people at the top at your expense.
Most investors do not borrow money to buy gold and silver simply because there is no point. If you have an ounce of gold and silver right now, you’ll have the same amount a year from now or 10 years from now.
Stocks and real estate on the other hand, have a huge inherent incentive to go into debt simply because people want to extract rental income or dividend income from it right now, which is how this all starts.
Sometimes I think about the bible where it says debt is bad (depending on your interpretation of it).
So Which Gold IRA Company Can I Trust?
There are many gold companies you can choose to work with, but because I’m a huge fan of Laura Ingraham, Dennis Miller, and Alan Thicke, my bias eventually steered me towards Regal Assets. I managed to find someone who wrote a great detailed review of all the top (and worst) companies which I got permission to reprint on this specific webpage here. Regal has an A+ rating with the BBB and haven’t had any complaints lodged against them in years. The only downside to working with Regal is that they require a minimum investment of $5,000.
For those of you who are poorer or don’t want to spend that much money just yet, I’d recommend APMEX since they allow any dollar amounts for silver and gold, but they do charge slightly higher premiums above spot as a result. If you go with APMEX, I recommend sticking with silver as that is their cheapest product. Above $5,000, Regal Assets is the better company since your spot cost will be less than 1%, saving you a lot more money to do whatever you want with it.
If you invest $10,000 or more, however, ask them about their free storage and administrative fees. This is not generally available to everyone but if you ask them about it they will explain everything to you before giving you the free storage. If you would like to get in contact with someone who works at Regal Assets, you can visit their website located here or fill out the form on the right.
If you’re curious about the gold kit that most companies send you, here’s a video review of me opening it to save everyone time and hassle (this was back when I was writing for The Heart Of Gold):
Regal Assets has a triple A+ rating with the Better Business Bureau, and has delivered billions of dollars worth of gold, silver, platinum, and palladium to many investors worldwide, making them one of the best gold ira companies in the world. With a spotless reputation they are proud to maintain, you can rest assured that you are not investing your life’s hard work into a retirement fraud or gold ira scams. Regal Assets roll over 401k’s into gold and silver every day, which means that you will be speaking with people who know how to perform retirement transfers swiftly and without error. Let Regal Assets educate you on how to:
- Save on admin, setup, storage, and 401k rollover fees.
- Legally not pay any penalty taxes for switching your 401k or IRA retirement plan into gold and silver.
- What EXACTLY to do with your IRA when changing jobs.
- The CORRECT way to do 401k rollovers.
- Which gold and silver coins are allowed into a gold IRA. Yes, many items are NOT allowed in an IRA according to the IRS.
- How to create your asset structure to prevent government confiscation or manipulation. The hammer will drop hard on the governments of the world and when they get desperate, they will resort to extreme measures to survive, just like FDR did in the 1930’s when he stole everyone’s gold and made it illegal to hold it.
To receive your free investor’s kit, you can call the phone number listed here, fill out the form below, or visit Regal Assets directly.
Should I Transfer Or Rollover My Retirement Plan?
The first method is to “transfer” your funds from your primary retirement plan to a new one. This is also known as transfer from custodian to custodian. Regal Assets has handled thousands of these types of transfers. Your money is basically sent from your old account to the new account (trustee). This usually means your previous custodian will send a check (with all your money in it) to the next custodian of your choice so the new custodian can deposit your cash into a new account. For obvious reasons, you need to make sure you find a reliable gold ira company that won’t take your life’s work and run away with it. There are NO tax penalties with this method because you are not cashing out a profit.
The second method (and much safer) is to do a “rollover” of your retirement account. There are no tax consequences with this method as long as you transfer all your retirement proceeds to your new gold ira custodian/keeper of your cash within 60 days (IRS rule). You will receive your check from your old custodian for the full amount of your retirement savings, which you will then send to your new custodian of choice (which in this case could be Regal Assets). This ensures peace of mind for you because you have your money in hand. Make sure there is paperwork and contracts involved that spells out everything for you, such as the money must be placed into a new custodial gold retirement account. An illegitimate company would not bother you with such paperwork, which is a huge red flag (which is why it’s important to research top rated reviews of gold ira companies online). To preserve your tax-deferred status, this money can only be transferred over once every 12 months.
To receive your free investor’s kit, you can call the phone number listed here, fill out the form below, or visit Regal Assets directly.
Many Americans contribute some amount of money into a 401k retirement plan. According to the Investment Company Institute (ICI), more than 50 million employees and retirees have a 401k plan. In total, the 401k retirement system has more than $3.5 trillion in assets. This includes individual retirement accounts (IRAs), employer sponsored retirement plans, and annuities. Although most people with employer-driven retirement plans tend to invest in equity securities such as mutual funds, it is wise to consider other investment options such as gold. This guide will take you through the importance of converting your 401k into gold.
The 401k Mismatch
The conventional thinking is that a 401k allows one to set aside money for their sunset years. While this is a good idea, the problem is most retirees will not have enough money to see them through their retirement. Figures published by the ICI show that the average account balance in a 401k account is $50,991. With senior citizens living longer after retirement, this amount is not enough. At the same time, a study carried out by the UC Berkeley Center for Labor Research and Education found that 70 % of assets in 401k and IRA accounts belong to the richest 20% of Americans. This means that only the rich have set aside enough money to cater for their care during old age. To make the problem even worse, most retirement plans track the fortunes of the stock market. As a result, a dip in stock market returns negatively affects the amount of money one can receive after retirement. This does not mean that it is all doom and gloom. Read on to find out how to roll 401k into gold and build a retirement nest egg.
Overview of Gold as an Investment
Gold is one of the most popular high value metals especially among savvy investors. In fact, most investors use gold to preserve their wealth during times of economic uncertainty and turbulence. Remember stock assets can be quite volatile and jeopardize the value of your 401k. On the other hand, gold tends to increase in value over time. Statistics from the Philadelphia Gold & Silver Index show that gold has appreciated by more than 423% since 2003. In addition, World Mine Cost Data figures show that the cost of producing one ounce of gold stands at $775. If you compare this with the current price of gold (1,389), it is clear that investing in gold makes financial sense. The good news for people who regularly contribute to 401k plans is it is possible to convert 401k to gold.
How To Go From A Paper 401k to Precious Metals
Anyone with a 401k can roll it over into a valuable metals IRA. Furthermore, you do not have to convert your entire 401k into a high value metals IRA. You can exchange a portion of your 401k into gold while the other portion retains traditional equity based investments. For people who had joined employer sponsored retirement plans but no longer work for the same employer, it is quite easy to convert 410k into gold.
How to Convert 401k to Gold
The first step is to change the 401k account into a traditional IRA account. This allows one to transfer funds from the former account into the latter account and then use the same funds to purchase gold.
If you are still working and contributing money to a 401k retirement plan, it is advisable to consult your employer before attempting to exchange your retirement savings account to gold. In the retirement plan industry, experts call this type of transfer an in-service distribution. It works by distributing funds from your 401k account into a self-directed IRA account. From there, you can use the money to purchase gold. The beauty of using this approach is you do not have to pay any tax penalties. In comparison, people who withdraw money from their 401k accounts prematurely are subject to tax penalties.
Take note that some 401k plans do not allow in-service distribution of funds. In such a case, go through your savings plan’s investment options to find out if it is possible to roll 401k into gold. If it is not, do not despair. Contact your employer’s savings plan administrator and request precious metals to be part of your investment options. Employers can create retirement plans that allow employees to rollover their accounts into precious metals accounts. However, your employer may make it easy or hard for you to buy precious metals such as gold.
Ways To Transfer Your Retirement Money
There are two ways of rolling 401k into gold. The first option (direct rollover) involves direct transfer of funds from your 401k plan to the trustee of your IRA account. In this case, you do not directly handle the transfer of assets or funds. Instead, the administrator of your 401k plan sends the money directly to your IRA account trustee. This ensures that you do not get the money and use it instead of investing it for your old age. The second option (indirect rollover) involves your 401k plan’s administrator transferring the funds to you for further investment.
The problem with this option is 20% of your funds go towards paying income taxes. Moreover, you have to deposit the funds into your IRA account within 60 days of withdrawing from your 401k plan. Take note that you have to deposit the full amount rolled over from your 401k. This means that you have to use your own money to cover the 20% income tax difference. If you fail to deposit the full rollover amount within 60 days, you will have to pay the IRS early withdrawal penalties as well as the applicable income taxes. The rule of thumb is to go for the best gold IRA rollover to avoid out-of-pocket expenses associated with indirect rollover.
Saving money in a 401k for your sunset years is very important. However, the value of 401k plans tied to equity-based investments can shrink making it hard for one to retire with enough money to cater for personal and healthcare expenses. One way of protecting your nest egg from turbulent stock markets is by rolling 401k into gold.
Since gold is the most valuable commodity in the world, it’s little wonder people are ready to move mountains just to get a piece or bar of gold. However, the challenge arises in finding the right company from which to buy gold. Being a precious commodity, various individuals and companies will try to find the best deal possible, and rightly so. As a result, some unscrupulous people come up with fake products and sell them to unsuspecting clients. Before engaging in any transaction dealing with the buying and selling of gold, one should be aware of certain aspects that will ensure they get the best deals.
Various people decide on investing in gold as part of their ira. This is a cleaver business move as it ensures you get to insure your future while getting value for your money. Several companies deal in gold iras. Before choosing the company to do business with, you need to investigate certain factors, to ensure you’re dealing with the best gold ira companies. Information on various ira gold companies can be found from different sources. You can look up the best gold ira custodian companies from the phone books. However, there are certain misconceptions about these companies that need to be clarified.
• Every company is the same. This is a common myth that leads some investors into losing their hard earned investments to rogue dealers. Just because a broker advertises their services in the newspapers, doesn’t necessarily mean they are reputable or legitimate. Some dealers are nothing more than “shell corporations” that provide no actual service. This means they only exist on paper. The scam is once they get your money, they disappear for good, start up another business with a new name, and repeat the scam all over again. It is advised that before you engage in any transactions, that you verify their credentials, such as being BBB accredited.
• Everything written on paper/the contract is true. This is also another lie, which leads to investors losing millions of dollars every day. Companies will invest on a marketing strategy that will attract as many customers as possible. Most of the time, these advertisements exaggerate the products and services being offered. Thus, before believing everything that the company promises on its page, check with a reputable 3rd party website to make sure they are in good standing.
• The rates are all the same. Different companies offer different rates for their services. The company’s location, client base and the number of years it has been in business usually determine the particular dealer’s rates. Regal Assets typically has the lowest rates compared to everyone else since their focus is in building a long term relationship with you, not trying to milk you for all the money that you have.
There are various steps to be followed when choosing a gold ira company. This is to ensure that your investment is safe and intact. These three major steps are:
1. Purchase the gold. Before you decide on a valid ira company to do business with, you should have genuine gold. Buy the gold and ensure it is approved by IRS. This typically means the precious metals are 99.99% pure.
2. Get an IRA custodian. Having a custodian is very important in the precious metals business. This shields you from an encounter with people who are out to steal from you. A qualified ira custodian will help you create a self directed ira.
3. Find a safe place to store your gold. Gold is a very valuable asset so storing it in the house would be an unwise move. This is because it might be stolen and you will have yourself to blame. If you insist on doing this anyway, consider having a very strong safe in a secured room (with locks to such a room).
When you’re looking to procure precious metals, you want a company that knows where to buy and sell the gold at the best prices. This way, you are ensured the best possible prices over the spot price.
When dealing with gold companies, it is important to know how to convert ira to gold. With the help of the best ira companies, one is able to know the rates by which the ira turns to gold and vice versa. Armed with such knowledge, you get value for your gold as some companies keep all the profits to themselves once they realize the client is in the dark about current metal values.
The best gold companies charge their clients little to no annual ira fees. This is a strategy to ensure they maximize their number of happy clients, which leads to an increase in sales for the broker. These companies offer top of the class security to their commodities storage, making sure there are no vulnerabilities to theft. They offer low bond commissions to ensure they are still in the market even when the business is not doing so well. When dealing with trade executions, they convert roth ira to gold and convert ira to physical gold at fast but profitable rates. They then pass these savings and profits onto you.
The best companies offer good customer service to their clients. They offer automatic investment options to their clients to enable them to increase their assets tax-free or deferred, thus improving their retirement aspects. They also ensure beginner investors access to their investment plans easily by making it affordable and understandable. This attracts more customers to the company which will increase their motivation to help you get rich and secure from precious metals investing.
Most of these companies have websites from which clients can access their services. This has made it quite easy to research gold ira companies as there are many reputable companies to choose from. They also ensure their websites are well designed with user friendly interfaces to minimize the confusion of having you go through a bunch of technical mumbo-jumbo that delays your investing actions. Therefore, managing your money should only be as difficult as deciding the context and direction of your investment markets.
If you’re interested in learning more about gold, fill out the form on the right or below: