An Individual Retirement Account or IRA is an investment tool that helps you plan for your retirement. The 401K is so called after a clause in the Internal Revenue Code that enables people to save money at source specifically for their retirement and before any taxation is applied to their pay.
Investing your pension into stocks and shares via a broker or financial advisor is common but another investment option is to put your IRA into gold. There are good reasons; Precious metals remain more stable than paper stocks and shares and gold in particular keeps its value.
As an added advantage the price of gold rises in times of economic uncertainty so it can take the worry out of the future. Once your IRA is converted into gold it takes the worry out of your investment.
To perform a 410K to gold rollover you need to first set up a custodian to look after your gold. Unlike paper investments you do actually get to own something tangible but legal requirements state that you are not actually allowed to store your gold yourself or bury it in the garden!
You then need to find a gold broker. Often the custodian such as your bank will be able to advise you on this. Alternatively there are specialist companies offering this service so check these out and see what they are offering. As with all things related to money, it is important to shop around.
Once you have opened your gold IRA you have a couple of options to choose from.
You can either go for an Indirect Rollover where you withdraw your funds from your bank account and deposit them in the Gold IRA account.
The other option is to set up a Direct Rollover where a set figure is taken from your bank account and deposited in your gold IRA account.
According to financial experts a Direct Rollover is easier to arrange and minimises the risk of falling foul of the IRS, leading to you being liable for incurring tax penalties. This is because if you choose an Indirect Rollover you must complete within 60 days or it will be classified as a taxable withdrawal and you will be charged. This can be as much as 10%.
Once you have set up your Gold IRA rollover, your retirement saving becomes much easier and enables you to plan for the future stress free.
If you are considering a Gold IRA Rollover your first step should be to find the right gold broker or vendor.
Check out the company on the BBB (better business bureau) website and see if they have a good record or whether they have attracted customer complaints. It is also important to know that the company has some back history and for how long they have been trading. Can you communicate easily with this company without being bombarded with a sales pitch? Will they keep you informed?
After all trusting someone to turn your pension pot into gold on your behalf is a crucially important decision that you need to get right.