Learn Why Convert Your 401k or Rollover Your IRA to Gold in 2014. Discover the Pro’s and Con’s of Investing in Gold and 401k Rollover Rules.

Gold has always been a good investment in hard times. If there’s a recession or high inflation, investors buy gold and other precious metals because it’s a great store of value. When other investments are performing badly, gold tends to rise.

That means gold can be a wise investment to add to your retirement plan. After all, if you’ve been saving for your retirement for years, you don’t want the value of your plan to crash just when you’re going to need it.

The problem is that in most cases, investing in gold and other precious metals isn’t easy. If you have a 401(k), like many people, then you won’t be allowed to add gold to it – or it could be too expensive. The good news is that it’s possible to convert your existing 401(k) to a type of retirement plan that does allow you to invest in gold. This is known as a ‘rollover’, and it’s generally a fairly straightforward process.

What is a 401(k)?

A 401(k) is a very common kind of savings plan for retirement. Many people have these plans because they are arranged by their employers. Every month you will pay a set amount of money into the plan. Your employer may match this with a set amount of money. The money is paid before your earnings are taxed, which means that more is saved. (When the plan pays out on your retirement, your income from it will be taxed.) You can invest up to $17,500 per year in a 401(k), and you won’t usually be able to access the money until you are 59½.

A 401(k) works for most people. They are designed to make it easy to save for your retirement, and your workplace will take care of most of the decisions and administration that will be needed. They will also decide the types of investments that are made. Usually, this means investing in a range of funds that are linked to the stock market. The whole idea of the 401(k) is to make it as cheap and simple to invest as possible. because your employer will be using the same plan for everyone.

Because of this, you will probably get good returns on your investment in the long run. Retirement savings plans are designed to run for many years before you cash them out. Some people will be paying into their plan for 40 years or more. But they can also have disadvantages.

401(k) advantages

· Straightforward plan arranged by your employer

· Easy to understand

· Payments are made automatically from your earnings

· Payments are made before tax is taken from your earnings

· They don’t take into account your particular circumstances

Why can’t I include gold in my 401(k)?

Your 401(k) should invest in a wide range of different funds. This is to make sure it is relatively safe from problems that might affect one or other area of business (if you just invested in one kind of share or fund, there would be a huge risk of something going wrong in that sector).

In order to invest in physical gold, you will specifically need to instruct your retirement fund provider to add it to your plan. Because your 401(k) doesn’t allow you to make this kind of decision, you will need to switch to a different plan than does let you make your own choices.

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