401k Concerns

bestdividend-paying-stocks gold investing

Many people today worry about how secure they will be financially during their retirement years. Although most people do save for their retirement with regular 401ks, the security that those funds provide came into question in 2010 during the last financial crisis. A 401k’s security came into question because anyone retiring in that year found themselves, despite all their savings over the years, with far less than they had planned for to give them financial security in their retirement. The reason for this is that regular 401k funds rely almost entirely on the stock market to make their profits and then the managers of the funds take out fees for making the investments, whether the investments are bad or good.

All of this means that if the money you invested in a 401k is placed at the volatility of the stock market and if that crashes, your savings crash with it, plus of course you will still have to pay the fund manager from whatever is left over. One solution to this however, is to convert 401k to gold. This can be done by rolling over to a Gold IRA. A Gold IRA does not invest your funds in the stock market as instead, it invests your money only in old or in other precious metals. These precious metals have a value independent of any stock market and although their values can fluctuate, they fluctuate more slowly and always end up with a higher value, given time.

This does however mean that you are very unlikely to be able to make huge profits from your investments but at least the investments are safe enough for you to be able to plan how much you will have for your retirement. Yes I know it would be great to make a killing on the stock market, one that would ensure you a financially secure future regardless of how long you may live but that type of gamble can be made with money separate from what you invest for your retirement otherwise, you could just as easily and more likely, end up with nothing and no future worth thinking about.

Both regular 401ks and Gold IRAs are subject to some nice tax benefits however, with Gold IRAs there are some strict rules that you must abide by if you do not want to fall foul of the IRS. These rules may include not being permitted to buy certain rare gold coins which are considered to be collectibles and close attention must be paid, by you the investor, in exactly what is being purchased with your Gold IRA funds as, it will be you that the IRS will speak to if these rules are violated, even if they are violated by your agent and not you.

Gold IRAs are a good and safe investment for your retirement but before rolling over to one, you should perhaps learn at least a bit about the different types of gold and other precious metal investments that are available and also be sure that your agent only makes investments on your behalf, in accordance with regulations.