Rolling Over 401k to Silver IRA Investment Account
Many retirement investors are dissatisfied with their 401k investments. Considering the great variety of high-performing assets to which they do not have access, this is not surprising. The restrictions on 401ks, their conservative bent and the possible poor performance of their underlying securities all lead to discontentment in the face of any concerns about future economic conditions such as inflation and a devalued currency. That is why a lot of these unsatisfied people want to know how to rollover a 401k to silver investment plans of one kind or another.
Why Is Silver a Good Retirement Investment?
Precious metals get a lot of attention from wealthy investors and those with more limited means as well. Gold prices steal the headlines but even newcomers to this side of things can see that silver is where the best future for your money lies. This under-appreciated precious metal does not really take second place to gold, even if its price per ounce is always less. A shrewd analysis of the history of silver prices shows that this commodity always remains a powerful investment and an efficient tool for fighting against inflation.
It is not just price performance that drives people to silver and the other precious metals. There is a quality in all these assets that does more than give them the ability to perform well compared to securities and other financial instruments. They are basically guaranteed to keep pace with inflation at the very least.
Acting as hedges against inflation, assets such as silver help to preserve your wealth. Many retirement investors contemplate a possible future in which their hard earned savings, locked up in paper investments and cash deposits, lose purchasing power slowly or quickly. Such a possibility is enough to unnerve even the most experienced investor.
However, with silver making up a portion of a retirement portfolio, no one has to worry about such a future unfolding. Silver exists in finite quantities. The government cannot produce more of it by printing it or by any other means. As more money is printed, it naturally takes more money to acquire the same amount of silver which has not undergone any magical multiplication at the behest of a government running huge budget deficits. If you kept all of your money in silver, you might pay one ounce of it for so many gallons of gasoline. If gasoline prices rise due to inflation, so does the value of your silver. You will pay the same amount or even less for that amount of gasoline.
Explore the Options of Your 401k Retirement Plan
If you have a 401k, you might find yourself in one of several situations which has you pondering a change. No one should allow others to constrain their investment choices. Usually, when brokers or employers put limits on retirement plans such as 401ks, they do so to further their own interests. Many companies, for instance, direct a lot of the 401k funds into purchases of the company’s own stock.
Dissatisfaction with these limitations gives you every right to seek new guidance or options in your investments. Most 401ks are very strict with the choices that they provide to their clients. However, you should always check with your 401k plan to see if it allows a silver investment. Putting your accumulated funds in a 401k into silver investments would be easy and profitable. You could continue to enjoy the tax protection and other benefits of a 401k while giving yourself a much more stable retirement future than many of your peers.
How to Rollover 401k to Investments to a Precious Metals IRA
However, most 401k plans are not going to allow you to make these kinds of changes. Anyway, you may no longer be in a position to contribute to your 401k plan if you have lost your job or changed employers. Furthermore, you may be in the position of starting with a new employer and wondering whether you should transfer funds to a new 401k or try something new.
In most cases, your best option will be to get innovative. If you are looking at a situation in which you either need to cash out your 401k or make some other big change, investigate a silver IRA or even using your money to buy physical silver. Either option would be better than hanging on to a doomed 401k.
If you have a very small 401k account, it may be worth it to cash it out and buy silver or gold. You should check to see how big a penalty you may receive for this and how much it might increase your tax bill. In most cases, the best option is to rollover the 401k to silver IRA accounts.
To get started with a precious metals IRA, review the custodians first. Custodians are the institutions in charge of overseeing IRAs. According to IRS regulations, all custodians are allowed to offer at least some types of silver or gold investments as options. However, no one is forced to permit these sorts of investments and many do not. The first step is to determine which custodians are even interested in offering such options to you.
Once you have narrowed down your choices to custodians interested in helping you rollover your 401k into a silver IRA, start to look at their options and their fees. Some custodians will offer only a limited range of precious metal investment options while others essentially offer self-directed IRA accounts. In addition, custodians are distinguished by their fees and other charges. Obviously, you want to find the account that will give you the best fee structure for your situation along with the right investment options.
Once you have made your choice, explain your situation to the custodian and open an empty account. Then return to your 401k plan and explain that you want to rollover your 401k into a new IRA. There will be some paperwork to fill out. It is very important that the end result is that the 401k plan writes a check to your new IRA account. As long as your funds go directly to the IRA, you do not have to worry about the withdrawal being interpreted as income.
Choose Your Investments
Once your funds are safely secured in your precious metals IRA, it will be time for you to choose how to allocate them. With a precious metal IRA, you will not be forced to choose silver as your only investment asset. Instead, this will be just one of many options such as gold, and platinum. However, the investments possible with your new account may be numerous.
If you want to stick with investment in physical silver, you will have to choose between coins and bars. Many countries issue silver coins and give their price the full backing of their governments. Examples include the American Silver Eagle, the Canadian Silver Maple Leaf and the Australian Kangaroo. Silver bars are issued by private companies such as Credit Suisse and Johnson Matthey among others.
With your silver IRA, you can also purchase silver stocks and other financial instruments. Silver ETFs (exchange-traded funds) are particularly useful because they avoid much taxation that comes with silver index funds.
Converting your 401k to precious metals is not simply an expedient measure for the present. This is a good move for your finances under any economic conditions because these metals always preserves your wealth. You need to hedge against inflation and currency devaluation today. Don’t let your savings and potential investment growth dwindle away. Take action today by contacting an IRA custodian in order to find out how to rollover a 401k to silver investment IRA custodians.