A 401k, or any of its variations – the 401a, 403b, 457, and others – gives you great investment opportunities in preparation for retirement. Standard 401k accounts have limitations, however. One of these is that they do not offer the option of investing in physical precious metals.

If you have a standard 401k plan and want to invest in physical gold, silver, or other precious metals, consider rolling over your 401k into a Gold and Silver IRA or a Solo 401(k).

Reasons to invest in gold and silver

Gold and silver have served as money around the world for centuries. Investing in these precious metals offers countless benefits, including the following:

• Gold and silver have enduring intrinsic values that’s retained through time and outside factors.
• The value of gold and silver rises with inflation and dollar devaluations, making investments in these metals great buffers against economic uncertainties.
• Gold and silver prices are likely to rise over time, given their worldwide demand. In the last decade, gold has outperformed stocks by more than 300%.
• Precious metals provide effective portfolio diversification as their value is generally not impacted by the same factors that affect stocks and bonds.

Paper precious metals

You might have been told that you can invest in gold, silver, and other precious metals in a standard 401k. What this generally means, though, is investing in paper shares like exchange traded funds (ETFs) and certificates. It does not mean physical ownership. While investing in paper precious metals has its advantages, it does not give you the same safe haven that physical ownership provides.

By rolling over your 401k funds to a Precious Metals IRA or Solo 401k plan, you can start investing in physical gold or silver as quickly as possible.

Rolling over a 401k to a Solo 401k or Precious Metals IRA

A Solo 401k is a retirement account where you act as the custodian and manager of your funds. To be eligible for one, you must meet the following requirements:

• You must show proof of self-employment activity, including ownership of an LLC (Limited Liability Company), Limited Partnership, C Corporation, S Corporation, and others. Self-employment can take place at the same time as full employment.
• You must have no full-time employees.

A Precious Metals IRA is a self-directed IRA that allows you to invest in a wide range of options, including physical gold and silver, real estate, franchises, and bonds and stocks. While this type of account is administered by a trustee or custodian, it gives you the freedom to choose your investments and develop your portfolio as you desire.

Here are some basic guidelines in rolling over a 401k to a Solo 401k or Precious Metals IRA:

• You may rollover part or all of your 401k funds from a previous employer to a Precious Metal IRA or Solo 401k.
• If you’re still working for the employer who hosts your 401k plan, rolling over your 401k funds may be done under an in-service distribution. However, not all plans allow this, so it’s best to ask your plan administrator.
• If an in-service distribution is not allowed, you can request your company to include physical gold and silver in your 401k investments.

If you can’t rollover your existing 401k funds, consider opening a separate Precious Metals IRA account. Give us a call to help you sort through your options in rolling over your 401k. We shall be happy to provide you with guidance on how best to fund an investment in physical gold and silver.