Over the past 20 years, the price of gold has more than tripled. If you’re looking to put some money into this highly-valued precious metal, then consider a gold 401K. Now, you may be wondering if you can actually invest in gold with your 401K, and the answer is yes. Keep reading to find out just how easy it is.
Various 401(k) Plans
Employer controlled 401(k) plans give you varying levels of control over your investments. With some of them, your employer decides which investments you can choose. However, if you’ve got a plan with partial or complete decision-making powers over your investments, you have what’s known as a self-directed 401(k). There’s also a Solo 401(k) that works well for self-employed individuals. It, too, is self-directed.
Gold Investments
With a self-directed 401(k), you’ll be able to invest in gold in a few different ways. For example, gold ETFs (Exchange Traded Funds) are commodity funds that only deal with physical gold. When you choose a gold ETF, you are putting small amounts of money into multiple different investments, which offers more stability than having just one. Additionally, you can choose to invest in gold futures, options, or contracts, and the stocks of gold mining companies as well.
Roll Over to IRA
As you may have noticed, in most cases, you generally don’t own physical gold with a 401(k). However, you can roll your 401(k) over into a gold IRA account, which is simply a type of self-directed IRA that allows you to invest in physical gold. You can also invest in other precious metals, such as silver and platinum. Keep in mind that rolling over your 401(k) could result in tax penalties. You’ll want to speak with a financial advisor to help you navigate this investment.
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