An IRA account that holds physical gold or silver is meant to protect wealth. Gold and silver have each historically served as money and a long-term store of wealth. Another financial crisis or market panic could cause the value of investments in paper based assets such as stocks or bonds to decrease in real value. A well understood investment technique is diversification. Diversification means not putting all your eggs in one basket. Diversification is meant to limit the losses that a failure in one asset class might bring. Placing a portion of retirement wealth in a gold IRA that holds gold or some other physical precious metal such as silver, is meant to protect your wealth during a period of financial crisis or financial downturn.
Protection From Another Economic Downturn
To better understand the likelihood of another crisis or panic, there are a number of good resources listed below that provide a solid background to anyone who wants to understand what is going on in the US economy. The interlinked global economy in which we live and the related financial markets are still quite shaky from the 2008 financial panic. The large banks in the US are larger now than then and the exposure to financial derivatives has only increased. The risk levels in the financial system are actually larger now than they were before the 2008 financial panic
The books that are linked to below are easy to read and provide a great understanding of how our global economy and finances really work. The debt levels that have built-up in the US and globally are very worrisome. The US national debt grew from $9 trillion in September 2007 to over $18 trillion by December 2014 and continues to grow each month: standing at over $28 trillion in mid-2021. But the nominal GDP only grew from $14.5 trillion in 2007 to about $21 trillion in 2021. You can see there was a rapid increase in US government debt compared to the overall economy. Many folks see this rapid increase in debt leading to another financial crisis.
The message of the books and the courses that are listed below is that the United States entered into a depression in 2008 and is still working with the structural problems that brought that about. The incredible money printing by the Federal Reserve is a great concern as nothing like this has ever been tried before. The important question for the individual investor is how to protect wealth over the coming years in what could be an extraordinarily turbulent time? One investment vehicle that stands out in these considerations is a self-directed Gold IRA. Holding physical gold, or another precious metal, in a self-directed IRA is seen by many as insurance against a time ahead where these extraordinary efforts by the Federal Reserve cause another financial panic and steep economic downturn.
If you are a person who has wealth to protect, a self-directed IRA that holds physical gold, silver, platinum, or palladium could be just right for you. A gold IRA is easy to set-up when you work with a good precious metals dealer to help you along. To get started, get your Investment Guide. It’s free and packed with useful information.
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When To Sell Your Gold
When you own physical gold or silver in an IRA there is a time to sell. That time is when gold or silver prices move into a bubble. The prices of gold and silver have been actively suppressed by central banks since 2011. It is a bit like holding a beach ball underwater. When the forces holding the ball underwater release, the ball rapidly rises to the surface and overshoots before settling to equilibrium on the water surface. When gold or silver prices overshoot to the upside that would be a time to sell.
Gold prices below $2,000 per troy ounce and silver prices below $30 per ounce are like the beach ball being held deep underwater. (Since about 1986 , the average ratio of the spot price of gold to silver is about 60x. The long-term historical price ratio of gold to silver is about 15x). The more currency that is printed by the Federal Reserve the higher the pressure on those submerged prices to push up; meaning the US Dollar prices for gold and silver have to go up more to reach equilibrium to account for all the US Dollar currency printing,
It is never easy to time a price top. Many folks will look at comparison ratios such as the median home price in terms of ounces of gold or silver, or the price of the Dow in terms of ounces of gold or silver, or the price of oil in terms of ounces of gold or silver. When those ratios overshoot based on long-term historical trends, some folks use that information to guide them in deciding when to sell their gold or silver. If an investor gets this right, selling near the price peak, that investor can enjoy a tremendous transfer of wealth into their accounts. Holding a portion of your retirement assets in physical gold or silver gives you the opportunity to take advantage of this wealth transfer opportunity. That is one reason many people have set-up a gold IRA. It is a wealth insurance vehicle for them… one that might pay-off handsomely.
The goal of any investor is to buy low and sell high. Doing that is a powerful way to get wealthy or stay wealthy.
If you are a person who holds assets in a 401k plan, the following article is meant for you.
Gold 401k Rollover
What Is a Gold 401k Rollover?
Adding physical gold into an IRA is a great way to diversify, secure and grow your assets tax-free. Gold has long been considered a solid and reliable store of wealth by individuals, organizations and even governments across the world. People look to gold as a long-term investment. A Gold 401k rollover allows you to free-up your retirement funds accumulated in your 401k plan to buy physical gold through a self-directed gold IRA. A gold 401k rollover simply means rolling over your 401k plan to a gold IRA set-up as a self-directed IRA. In essence, you transfer – or move – your existing retirement account balance from your 401k account to a self directed IRA that holds physical gold.
How to Do a Gold 401k IRA Rollover?
You can rollover your 401k plan into a gold IRA through an option called an “in-service distribution”. Your existing, or previous employer, will transfer your 401k plan funds to a self-directed gold IRA custodian. You need to create a self-directed IRA with a new trustee or custodian in order to initiate and complete this process to transfer a 401k to a gold IRA. If you want to hold physical gold in your self-directed IRA then all you need to do is to rollover funds from the 401k to the self-directed IRA and use the money to buy physical gold. This is how a gold 401k rollover works.
There are two ways of rolling over a 401k to an IRA. Your existing custodian or former employer can send funds directly from your 401k plan to your brand new self-directed IRA administered by a new custodian. This transfer is a direct 401k rollover. The second option is an indirect rollover which allows you to withdraw funds from your 401k plan and then deposit the funds to a self-directed IRA that holds physical precious metals like gold. Remember, you need to deposit the distribution of funds from your 401k into your self-directed IRA within 60 days. Ask you custodian about this to ensure you do it right.
Why You Should Rollover a 401k to an IRA?
It may be tempting to cash-out your 401k retirement savings plan when you leave your employer but cashing-out a small or large amount of your 401k funds, or all of the funds, could cost you financially. If you make an early withdrawal of some cash from your 401k retirement funds you must pay income tax on that amount. If you cash-out a large amount of money from your 401k plan you may be placed into a higher income tax bracket for the year. If you withdraw funds accumulated in your 401k plan before the allowed retirement age, i.e. 59.5 years, you will most likely will need to pay a 10% penalty for early withdrawal. Transferring your existing 401k into a new 401k plan may offer little financial advantage because your investment options might still be the same or be very limited. Rolling over your 401k to a self-directed IRA will open a wide range of investment options. Here are some of the benefits of a 401k rollover to an IRA.
Tax-free Capital Gains – A 401k rollover to an IRA that holds physical precious metals like gold or silver will allow your retirement savings to grow tax-free. The biggest advantage you will get by rolling over a 401k to an IRA is the huge tax benefits. Your retirement funds will grow tax-free.
More Investing Options – A 401k plan offers limited investing options but a self-directed IRA that holds precious metals offers a wide variety of investing options. A gold IRA rollover from your 401k plan allows you to put physical gold coins and bars in your gold IRA to diversify your assets. Historically, gold is a store of wealth that holds its intrinsic value even when the economy is bad or when the value or prices of traditional investing options like stocks, bonds, and currencies have declined. Gold and silver are stores of wealth having intrinsic value.
Protection against Economic and Geopolitical Threats – A gold 401k rollover can protect your wealth against many types of financial crisis, economic recession and future uncertainty. Gold could act as a hedge against very high inflation, protecting your larger retirement portfolio from potential losses. Holding a certain amount of your retirement funds in the form of physical gold coins or bars helps diversify your investments making your portfolio more diversified and better able to withstand losses than if it were concentrated in one asset class. A self-directed IRA that holds physical gold, i.e. a Gold IRA, can provide you with long term capital gains, far better investment value, and financial security to secure your golden years.
To learn more about rolling over an existing IRA or 401k plan into a Gold IRA get the free Investment Guide. It answers many questions about how to do this and the benefits.
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Final Words
A Gold 401k rollover could protect your assets from many economic and geopolitical threats such as very high inflation, deflation, volatile stock markets, a rapidly declining value of currencies, and the uncertainties brought about by wars, disease and other negative economic events. A reliable investment advisor or company can help you make the right choices for a rollover of 401k plans into a self-directed IRA that holds gold, or silver. Talk with your advisor about the benefits of a Gold IRA.
Why Gold and Silver Now?
The books and online courses that are listed below are great resources for anyone who really wants to understand what is going on in the economy and wants to understand what the Federal Reserve can and cannot do to make things right.
Author: Richard Duncan
Richard Duncan website: http://www.richardduncaneconomics.com
Mr. Duncan produced two outstanding educational courses on the global economy and causes of the financial crisis that began in 2007/2008. You can take these courses online. They are both eye-opening and very well done. Click on the links below to see the courses. Both are highly recommended.
Capitalism in Crisis: The Global Economic Crisis Explained
Author: Jim Rickards
Jim Rickards is a well respected financial system expert. He has written multiple best sellers on the current financial situation. His books help anyone who wants to understand the real game at hand come up to speed.
Jim Rickards website: http://www.jamesrickardsproject.com
Jim Rickards blog: http://jimrickards.blogspot.com
The Federal Reserve
Where does money come from? Who makes it? The money secrets are unveiled in this classic book “The Creature from Jekyll Island.” Take a close look at the history of the institution we call the Federal Reserve that creates the grand illusion that we call the US Dollar. The Federal Reserve Bank is a privately owned entity that was created by bankers for bankers.
