Your 401k or IRA deserves extra attention and because it is your retirement money. Current average life expectancy in the US is 78.5 years and you need to know that your 401k or IRA money will last to meet all of your retirement needs. It is also important to also have enough retirement money available so you can enjoy your retirement years and be able to experience all of the adventures on your “bucket list”.
Investment experts recommend diversification as an effective strategy to protect and grow your retirement money. Many people saw a drastic reduction in their retirement funds during the recent economic downturn. Whether you were invested in stock, bonds or real estate the value of your 401k or IRA took a major hit. Many people lost everything, even though they were invested in companies they thought were secure, such as banking stocks and some lost everything because of scams or fraud.
If you are lucky enough to still have some seed money in your 401K or IRA, it is a sound strategy to invest it wisely. You also need to take oversight of your own research and due diligence to guide the needed diversification. You can’t simply trust an investment manager to act in your best interest, because that doesn’t always happen.
Many people have invested a portion of their 401K and/or IRA in precious metals. The recent reduction in the spot price of gold offers a buying opportunity that may not only serve to protect your 401K or IRA money but could also increase the value of your investment when gold resumes a growth cycle.
Investing in gold in your 401K or IRA is actually quite easy, although you need to be aware that you cannot take personal possession of your gold without taking a distribution. Fortunately, there are a number of investment options that will not require you to take a distribution. A precious metal investment that many people don’t know about is Bullion Vault. You can purchase shares in gold bullion bars with Bullion Vault, at a very competitive price and have your shares held in a secure location, where the gold bars are also insured and audited. You have the flexibility to purchase more or sell your shares within your 401K or IRA at any time. If you prefer to purchase gold bullion coins in your 401K or IRA, you can have them held by a custodian. This allows you to actually choose the coins you want, also without taking a distribution.
Your first step is to work with a reputable gold dealer who can give you information about gold bullion custodians and may even have the forms you need to begin the process. You will need to transfer funds from your 401k or IRA to the custodian. Once the funds are transferred, you can then purchase the gold bullion coins you want for your 401K or IRA account.
Gold can be a sound diversification strategy and provide insurance against future economic crisis. Having it in your 401K or IRA can also help you sleep better at night.