Can You Transfer Your 401K to an IRA without Penalty? Here’s What to Know

Gold is a precious metal that has been prized by people the world over for thousands of years. Its value only seems to increase and even in times of extreme financial hardship it somehow holds up and retains its sale price. If you are somebody who’s thinking about their retirement then why not open an IRA? A gold IRA is an Individual Retirement Account in which gold is held. It functions more or less exactly the same as a normal IRA, except gold bullion is held instead of cash.

Why do you even need to think about your retirement you might be asking? If you do not start thinking about it today then you could end up broke and destitute in old age. Saving for your retirement will help you to ensure that the end of your life is comfortable and filled with happiness rather than hardship and strife; if you have been thinking about retirement then you might have a 401k. If this is true then why not transfer it to a gold IRA? As gold holds its value and can beat inflation it is a much better investment. Here is everything you need to know about transferring your 401k to an IRA.

Understanding Penalties

One of the things that people worry most about when they are planning on transferring their 401K to their IRA is penalties. However, you don’t need to worry about penalties if you are planning to roll over 401K to a gold IRA as you can roll over all or part of your 401K funds into your gold IRA penalty-free as long as it’s done within 60 days of receiving the funds. If it takes you longer than 60 days then you could end up paying penalties.

The best people to talk to about penalties is a company that specialises in offering gold-backed IRAs. Such companies are experts and therefore able to provide you with all of the information you need. It should be noted that individuals who’re concerned about penalties will have to begin paying taxes after they reach a certain age. Taxes are not paid up until a certain point though. Educating yourself about the taxes and penalties owed on your account later on in life is the best thing you can do for yourself in order to protect your money.

Investing In Gold

Gold is one of the best things that you can invest in for your retirement because historically it has retained its value very well. While it is not guaranteed that gold is going to hold up in the future, analysts predict it will. Because it retains its value it is inflation-proof. Inflation is through the roof now which is why so many people are turning to gold. Many people who invested in it a decade or so ago have made huge savings and protected their money very well.

The good thing about gold is that not only does it retain its value but it also increases in it. Your gold savings will rise in value along with inflation and then increase in value as market demand grows. What this means is that you don’t have to worry about your savings losing their value and you get to earn more money which means you’ll have more to spend in your retirement. Before you make any kind of financial investment you do need to do your research and learn as much about what you plan on investing in as you can. Making investments when you are not educated on a topic is a very bad idea.

Planning Retirement

Your retirement is something that you definitely need to think about; a lot of young people today have no care or consideration for theirs. If you do not plan for your retirement then when it inevitably comes you could end up having to take on a second job or rely on government benefits. The amount of benefits that are paid to retired individuals is very low and is certainly not enough for them to live a comfortable existence. There is no guarantee that your partner (if you are married) will outlive you and therefore you could end up all alone which will make things even harder.

Planning for your retirement with the above in mind should be one of your main priorities. It’s not something that needs to take a lot of time since retirement planning is relatively easy and can be quite affordable. Generally, gold-backed IRAs are one of the best investments individuals who’re preparing for their retirements can make. The good thing about them is that they yield high returns and are very stable. The investments you make should always be stable otherwise it’s not safe making them.

Other Investments

When it comes to investing there’s a lot more you can put your money into beyond gold. While it is true that gold is one of the best investments that you can make there are other things outside of it you should check out. Property is worth investing in too; people who invest in property tend to have very comfortable retirements. You can either buy a property and lease it out (which will provide a steady stream of income for the rest of your life) or you can sell it. Selling a property for a profit allows you to earn huge amounts of money but it’s not as stable a hustle as leasing properties is.

You can also invest in cryptocurrencies, although crypto investment is far from stable and can be very dangerous; stock trading could be a good idea too. If you do not have the time to invest in either of these things then you could hire a professional investment manager and ask them to manage investments for you. If you do plan on doing this then find an investment manager with a good reputation. To figure out what an investment manager’s reputation is like read their reviews and see what people are saying about them online.

Your retirement is something that you need to plan and prepare for. Not preparing for it could lead to you having a very uncomfortable time in your old age. Planning for your retirement can be done easily by investing in things like gold-backed IRAs.