Imagine the following scenario: You spend more than forty years working to rise to the top of your field. All along, you do the responsible thing and put some of your hard-earned money into your retirement account, trusting that it will provide you with a comfortable cushion once your career comes to a close. But when you reach retirement age, all of your years of saving culminate into deep disappointment. Inflation has reduced the value of your money, and the funds you have apportioned into your 401k for the past four decades are barely enough to keep you afloat in your golden years.
Does this sound like a nightmare? Unfortunately, it has been a reality for many people. Thousands of men and women have been shocked to find that, despite their diligent saving, their retirement plans have let them down. If you want to avoid this situation, you may want to find out if a precious metals 401k is right for you. Converting your 401k to silver and other precious metals is one way that you can almost guarantee that your retirement account will ultimately increase in value.
What Factors Could Diminish the Value of Your 401k?
One of the major benefits of 401k plans is that employers can match their employees’ contributions into their accounts. 401ks also provide avenues through which their account holders can make investments. Ideally, the money from your contributions, your employer’s matches, and your investments combine profitably, stimulating your retirement account to grow comfortably. However, if your retirement plan does not offer good investment options, or if your investment choices go south, you may find that the growth of your retirement account stagnates rather than proliferates.
Even in the best of situations, the sum of money that you accumulate over time might not stretch as far as you hope it will. In fact, it is almost a guarantee that the dollar will have decreased in value by the time you retire. If basic necessities like milk, bread and gas are five times more expensive in thirty years than they are today, your 401k nest egg might turn out to be rotten.
What Influences the Value of Silver and Other Precious Metals?
This is where the beauty of a precious metals 401k comes in. Gold, silver, platinum and palladium are limited resources. The only way for the supply of precious metals to increase is for them to be mined; they cannot otherwise be reproduced. As the rate of the production of precious metals slows, their values increase because they are still needed for various applications. Once these assets are acquired, they are usually not “used up” in the way that other valuable assets, such as oil, can be. Oftentimes, they simply are held in reserve. Precious metals held in 401k accounts incur higher dollar values as the value of paper currency inflates. This is because the demand for these versatile assets is high and supply of “new” precious metals is low.
How Do You Make the Change?
If you decide that you want make the change to a precious metals 401k, you have the option to either transfer or rollover your account. In a transfer, the funds are transferred directly between IRA custodians. For example, a custodian like Regal Assets would set up a new IRA account, working with your current custodian to transfer the money into it from your existing 401k. After the money is securely in your new IRA account, you would use the new account to purchase precious metals through Regal Assets. Once you have purchased your coins or bullion, they are yours to keep, as is the increased value that they are likely to gain.
Like a transfer, a rollover has the same end result of your accumulated retirement funds ending up in a new IRA account. The difference is that instead of the transfer taking place directly between custodians, the funds are placed into your hands, and it is your responsibility to place them into a new account. Once you have received these funds, you have 60 days to reallocate them before you incur tax penalties on them.
Depending upon your employment situation, your specific commitments to your current 401k will vary. If your account is not currently attached to an employer, your transfer or rollover should be straightforward, but if you are currently employed there may be some obstacles. Because there are several different variables that can affect the process, it is helpful to have an expert help you navigate your individual situation.
How Much Control Do You Have Over Your Assets?
Once you convert your retirement account to a precious metals 401k, you enjoy full control of your assets. Although you may think you want to store your precious metals in your home, doing so is dangerous, not to mention a tax liability. When you choose a 401k custodian like Regal Assets, your goods are held in a private and carefully guarded location. They are kept separately from those of other account holders, and you can visit them whenever you desire. You are free to withdraw the money at any time, although once they are in your possession they are considered taxable cash. As always, you incur additional tax penalties if you cash out your retirement fund before age 59-and-a-half.
Converting to a precious metals IRA can also help you get your foot in the door to purchase additional precious metal assets that are not part of your 401k plan. For example, Regal Assets offers options for buying gold, silver, platinum and palladium that you can use to expand your personal portfolio.
A Precious Plan
You should not have to spend a lifetime spending carefully and saving wisely only to end up living paycheck to paycheck in your retirement. On the contrary, your retirement should be a time when you get to spoil your grandkids, check items off your bucket list and enjoy excellent medical care. If you are convinced that the best way to protect your future is to include precious metals in your 401k account, contact Regal Assets. They can provide you with informed guidance, diverse options, and strong protection. Do not wait to find out how Regal Assets can help you enjoy a prosperous future.