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Can You Convert 401k to Gold IRA and How to Do it?

As the times we’re living in are more and more uncertain and economic instabilities seem to be lurking around every corner, people are searching for ways to protect their wealth and their retirement portfolios. Not being sure about what will happen in the future is leading them towards searching for safer and more stable assets to invest in – assets that they can be sure will survive no matter what happens on the market. And, they appear to be finding what they’re looking for in precious metals.

If wondering whether gold may be a good investment for you as well right now, this should help you decide:

Those who have just started playing the investing game are opening up gold IRAs right away and putting their money in precious metals. The gold IRA, or the self-directed IRA as it’s also known, is the only account that allows for these alternative retirement investments, and people are now choosing them over other account types that are reserved only for those traditional assets, such as bonds and stocks. What about those people, though, who already have a 401k, for example?

Do those individuals have to say goodbye to the opportunity of investing in precious metals because they can’t transfer their money from the 401k to a gold IRA? Or, is that transfer a realistic possibility that people who want to buy precious metals can rely on? That’s the big question and getting your answer will definitely explain exactly what you should do if you were hoping to do such a transfer.

Can You Convert Your 401k to a Gold IRA?

So, can you actually convert your 401k to a gold IRA? Or is doing this impossible and you’re just dreaming of something that can’t happen? Fortunately for you, the answer to the question of whether you can do this transfer is yes. Converting your 401k to a gold IRA is certainly possible, and it will allow you to use the money you already have to invest in precious metals and thus secure your portfolio and your financial independence in the future, after you stop working.

How to Do It?

The biggest question is not whether this can be done. The biggest question is how to do it. If you take a look at BMO GAM Viewpoints or a similar useful source that deals with this topic, you’ll find out that the rollover process may not be as easy as you may have thought, because there are penalties involved if you don’t do it the right way. Avoiding those penalties is, of course, what you want to do, which is exactly why you need to learn precisely how to do this the right way, instead of just starting the process without getting all the info and going through it recklessly.

The penalties I am mentioning can easily be avoided by following all the instructions to the letter, but that’s one of those things that people can get wrong sometimes. Not completing the transfer in a timely fashion will certainly result in penalties, which is why understanding that this is a time sensitive process is a must. Being careful about it and doing everything right is a must if you don’t want to lose your money in the process, and that means that you may need help in the process. So, below I’ll tell you how to get the help you need and how to, thus, complete the converting process easily and without penalties.

Talk to a Financial Advisor

Making huge financial decisions always calls for thorough research and a great deal of thinking, because doing it recklessly is bound to lead to losses. Not knowing how all of this works could easily result in those losses, and since that’s precisely what you’re trying to avoid, it would be best for you to get in touch with a financial advisor first and let them explain everything to you clearly, thus ensuring you know exactly how the rollover process will work and what your responsibilities will actually be. A great financial advisor will give you all the information you need, making things much clearer and much simpler.

Naturally, working with just any of these advisors, without doing proper research on them first, could just as easily lead to issues as the idea of doing things alone. What does this specifically mean for you, though? Well, put simply, it means you’ll have to be careful when choosing the advisor and you’ll have to do a lot of research on at least a few of those, comparing their services, their experience and their reputation, so as to make the best decision and get the advice you need from a great professional.

Let You Precious Metals Company Guide You Through Everything

Since the 401k to gold IRA rollover, as explained here, could get more complicated than you expected, it would be best if you would let professionals do it on your behalf and guide you through the entire process easily. If you don’t quite get which professionals I’m referring to, let me clear things up. Basically, investing in precious metals will require you to work with a precious metals company that will be able to sell you those assets you want to add to your portfolio, as well as store them for you. Apart from that, though, they can do another important thing for you.

In few words, they can also help you set up your gold IRA, as well as do the rollover quickly and easily. Having experts on your side to help you will guarantee that no mistakes will be made in the process, meaning you certainly won’t need to worry about those penalties I’ve mentioned above. Letting these companies guide you through the process is your best bet for doing everything right and getting things set up as quickly as possible, so that you can start making the investments you want. After you get everything set up, the investing part will be pretty easy.

But Make Sure to Choose a Good One

As you might have guessed it, the trick is in choosing the right precious metals company to guide you through the rollover process, as well as to continue guiding you on your path towards making the right investments. Choosing poorly could easily result in those penalties and in further issues with your investments, which is not what you want. So, your main focus should be on choosing the perfect company, and that will require you to do extensive research about them before making your decision. Check experience, check reputation and, of course, remember to check the fees as well.

Jeff Campbell