Despite the constant fluctuations of money in its various forms, gold and other precious metals remain relatively stable. Especially since the financial crash of 2008, it has become clear just how significantly the effects of inflation can impact your accounts and assets. Gold IRA rollover allows you to take existing funds in your individual retirement account and convert them directly into gold bars or bullion coins. Turning your 401k to gold with an IRA rollover is a smart move that can actually have the effect of protecting your assets from economic crashes, depressions, and recessions. Here you can explore in detail some of the top reasons why a gold 401k rollover is one of the most solid investments you can make and one of the best choices for taking care of your future.
What Is IRA, 401k, and Rollover?
An IRA or individual retirement account allows you to save money on a tax-free basis. A 401k is a type of retirement plan sponsored by a business you work for that allows you to take a portion of your income from that job and invest it or save it in an IRA. The process of rolling over is what it is called when you move the funds from your 401k into your IRA. A 401k generally will not allow rollover unless you switch employers or retire. An IRA provides more freedom with switching custodians. A custodian is someone who manages an IRA account, which can be in the form of money, bonds, stocks, or precious metals. A gold IRA rollover is when you switch money from your 401k or IRA into the form of gold bullion or bars.
The Dangers of Regular IRA
Even with the freedom allowed by a traditional IRA, paper money is subject to the fluctuations and changes in value of any currency. Stocks can vary in value and their worth is directly reflected by fluctuations in the currency of the country the stocks are located in. Even an investment in a mutual fund can, like a stock, become completely worthless overnight. Bonds or treasury notes are less subject to the impacts of fluctuation, but only to a small extent. They are fixed price assets, meaning that as currency inflates, which it always does, the return amount stays the same, even though it is in the same currency. That means that bonds you worked hard to obtain steadily decrease in value in proportion to the rate of inflation.
Why Go Gold?
The fact is that major central banks continue printing money, sometimes increasing the rates of printing by ridiculous rates. When you get a gold IRA rollover, you are investing into a currency that is finite and limited, meaning its value is not dependent on the whims of bankers. Gold commodities fluctuate much less than other commodities, and it is likely to go up in value again. What are some specific advantages of gold as an investment?
If a government is irresponsible with its money or puts it in the hands of gambling bankers, your gold will remain safe. This is because even if they print way too much money or the stock market crashes, you gold may continue to go up in value.
Not only is its value intrinsic—that is, present with the metal itself, and not on the basis of government decrees—but gold also cannot be manufactured. This means there is no such thing as gold inflation.
Gold is also useful for a number of applications. Electronic devices such as cellphones and GPS devices all use gold in their components. Important scientific discoveries in space are fueled by gold as well, as aerospace technology such as that used by NASA is built using gold.
A Quick Guide to Gold IRA Rollover
Switching money from an IRA into gold savings can take the form of either a transfer or a rollover. A transfer allows you to directly switch money from one custodian to another. Since a check will be written out from the old custodian directly to the new one, it is important that you find a reliable and experienced asset management group that allows this kind of exchange, such as Regal Assets. A rollover is a bit different. Here is how it works.
With a rollover, you take the money from your existing retirement account and deposit it yourself in the new custodian’s account.
There is a 60 day time period in which you must complete the transfer, or else you assets may be subject to taxation.
The same money may only be rolled over once every 12 months, unless you wish to forfeit the tax-deferred status of your savings.
Other Tips About Gold IRA Rollover
There are some finer details that it is important for you to keep in mind if you wish to rollover your assets into a gold investment. Luckily, Regal Assets gives you simple instructions to follow for setting up an IRA account with them. Here are a few tips for making the most of your gold investment.
Each form of gold has its own requirements when it comes to purchasing and selling. Some forms of gold, such as Gold Eagles, have a special tax code exception associated with them. Make sure to do your research.
Depending on the form in which you store your currency, there will usually be some kind of storage fee associated with keeping it in a qualified storage facility.
A custodian will oversee the assets of an IRA account, ensuring they remain protected. This usually involves an annual fee, as well as asset or transaction fees, depending on the custodian.
You can be sure that Regal Assets is a highly affordable custodian for any phase of your 401k to gold IRA rollover. One of the best ways to utilize your 401k is with a gold 401k rollover. What better group to facilitate your gold IRA rollover than Regal Assets? Check them out today.