Gold Investment: Should You Do It, Can You Do It With 401k & How

We cannot say that investing in gold is a new concept since it certainly isn’t. Even the new method of doing it, i.e. the method of doing it through a retirement account, really isn’t that new and people have been using it for a long time now. If you are thinking of doing it as well, then I only have one thing to say here. It was about time you started taking this idea into account. Well, okay, you cannot quite be late for the party, because it doesn’t really matter when you will arrive, just as long as you arrive the right way.

Before you even begin thinking about arriving at the party, though, you want to do some learning first, and that’s completely normal. After all, you don’t want to rush into doing something without really knowing much about it. Sure, you could be lucky enough to do the right thing without actually knowing anything, but that is quite unlikely to happen. That is why you should do your best to learn everything you need to know about this process before embarking on the journey and making investments.

The first thing you want to know is whether you should invest in gold in the first place because you don’t want to make the mistake of doing something that won’t be good for you. I can undeniably understand that completely, which is why that will be our first topic for the day. Of course, we will then proceed to some other important topics as well.

Before we go any further, you might want to get familiar with some reasons why you should own gold: https://www.investopedia.com/articles/basics/08/reasons-to-own-gold.asp

As mentioned, we will have to talk about some other important topics as well. For example, the fact that you are actually here tells me that you are wondering whether you can invest in this asset with your 401k account, and that is another thing that we will address. And, of course, I will also help you understand how you should go through the entire investing process so that you can get properly prepared for the process. So, let us start addressing all of those things that are now concerning you because I have a feeling that you’re ready to get your facts straight on everything.

Should You Invest In Gold?

As I have explained above, you really don’t want to invest in something that won’t be good for you, which is why you are probably hesitant to start this process and add gold to your retirement account. This is perfectly understandable, but here is the thing. There is absolutely no reason to be worried here, because gold is a rather valuable investment, and I will now tell you a few reasons why you should own it. Let’s check those reasons out.

1.       It  Has Always Been And Will Continue To Be Valuable

The very first thing I have to tell you will be clear to you if you simply take a quick look back in time and check how gold has behaved throughout history. If you want to be spared the research that you’ll need to do in order to check that, let me cut right to the chase and tell you what you need to know. This precious metal has always been extremely valuable, and it is going to continue to be valuable in the future as well. So, if you think about it from the point of view of an investor, you’ll realize that buying this asset is actually a great idea because it’s undeniably a smart decision to invest in an asset that’s stable in its value.

2.       It Can Protect You From Inflation

We are all worried about inflation these days and it is no wonder. How does gold fit in with it, though? How does it behave in times of inflation? Does it tend to lose its value the way all the currencies are losing it, or does it have a different pattern of behavior here? Well, fortunately for you, and for everyone thinking about buying this asset, it actually has a different pattern of behavior.

When inflation hits, the prices of practically everything are bound to rise, and money is bound to get devalued. Gold, on the other hand, behaves in the same way as all those commodities that are increasing in value. To say it simply, when the cost of living increases, the value of this precious metal will increase as well. So, in conclusion, this basically means that this asset can serve as protection against inflation.

3.       It Is Rather Liquid

Another great thing to know here is that this asset is rather liquid. What does that mean exactly, though? Well, at some point after buying it, you might decide to sell it, as that’s a pretty normal course of action. The bottom line here is that you won’t have a hard time selling this asset, because the demand is quite high. In fact, you will be able to sell it and get a great ROI, which is undeniably a big deal.

4.       Diversifying Is A Smart Move

There is one more thing that I have to tell you if you are thinking of adding gold to your retirement account. Doing so will help you diversify the mentioned account, which is quite a smart move. That way, you won’t be putting all your eggs in one basket and you will, instead, be relying on various different assets to keep your financial future safe and secure. If you’re now ready to learn how to invest, click this to find out.

Can You Do It With A 401k?

Now that we are done talking about the reasons why you should invest in this precious metal, we have to proceed toward answering the rest of your questions. First things first, you are interested in learning whether you can hold gold in your 401k account. This is probably because you already have a 401k account and you don’t want your savings to go to waste. Well, nobody wants that, so it is no wonder that you are curious about this.

I have to disappoint you, though, so let me rip the band-aid off right away and without any delays whatsoever. Basically, you cannot invest in gold with your 401k. The only account that allows you to hold this asset is a self-directed IRA. So, if you had plans to hold this precious metal in your 401k, I hate to break it to you, but those plans certainly aren’t going to work.

Is There A Solution?

Does this mean, though, that you should immediately give up on the entire idea, and that there is no solution to your problem? Well, the great news is that it doesn’t. I know that I have disappointed you with the news that you cannot invest in this asset with your 401k, so now it is time for me to break the good news to you and, well, make you happy once again. There is absolutely no need for you to give up on the idea of investing in this asset because there is a solution to your account issues.

To put it simply, you can move your 401k to a gold IRA, and thus avoid losing any of your money and avoid letting all the savings go to waste simply because you have decided to diversify your portfolio a little bit. So, there you have it. There is a solution to your problem and I am quite certain that you like the idea. It all sounds pretty simple, doesn’t it?

Well, it might sound simple in theory, but the reality is a bit different. In a few words, this process certainly isn’t simple at all, and you need to do your best to do it all the right way. I am talking not only about the process of moving your 401k to a gold account but actually about the entire process of investing in this precious metal. Since there is no doubt in my mind that you want to do everything the right way, let me now tell you a bit more about how to do it.

How To Do It?

As explained, one of the things you will need to do when trying to own gold as a part of your retirement portfolio is to move your 401k to gold IRA. You can check it here: https://www.cobizbank.com/best-gold-ira-investment-companies/ Before you even start thinking about doing that, though, you will need to open up the right IRA, and I’ve hinted at it above already. Basically, you need to open a self-directed Individual Retirement Account, because that is the only one that will provide you with the opportunity to buy and hold gold. And, of course, there is no point in moving your assets from one account to another, i.e. doing a rollover, before actually opening the right account. So, this should be your first step.

Your second step should be to find the right gold investment company to partner up with. These firms can help you with the rollover too, but, most importantly, they will let you buy gold, they will store it for you, and will also advise you on certain investments that you might want to make. That is why it is quite important for you to find and choose the perfect company.

In order to do that, you’ll need to go through quite a lot of research. Browse the Internet for any information that you can find about different companies, and don’t be shy to talk to other people who have already gone through this process. Once you have done enough research, you’ll be ready to commit and make your choice, which will allow you to proceed to the next step.

The next step, of course, consists of funding your self-directed IRA, and that’s when you’ll have to do the rollover that we have been mentioning. Make sure to get the relevant advice from the company you’ve partnered up with because it is important for you to do the rollover the right way, so as not to face any penalties. You can also find info regarding that online. After you do the rollover, you’ll be ready to invest.