If you are looking to rollover your retirement account into an IRA, your financial adviser must have presented with an option of 401k gold IRA. A gold backed IRA is an retirement investment account, and not the US dollar. While most investors might have second-thoughts about this kind of investment, there are many reasons that you should consider it.
A lot of people believe that gold is one of the most volatile metals due to its emotional and political swings. But this is only partially true. Retirement investment accounts are long terms and thus, gold emerges out as one of the stronger investment for such type of investments. In terms of long term investment, gold has proven to be a strong performer, giving out excellent return on investment. This is the reason why rollover of 401K makes all the sense.
Active or Passive Gold IRA Custodian
A Gold IRA should be handled by a custodian, who will be responsible to rollover funds from 401K to Gold IRA. He will take into account the taxation laws and other important regulations to make sure you are able to make the smooth and lawful transaction. Given that, a passive custodian will perform actions as per your instructions, while an active custodian will provide you with advice based on market analysis and market trends.
Gold Mining or Real Gold?
There are two types of Gold IRA options to choose from when we talk about 401K rollover – gold mining backed Gold IRA and physical gold backed Gold IRA. Gold mining stocks are less expensive and yield greater returns. On the other hand, physical gold is expensive, but more stable in terms of long term investment. Your financial adviser will take into account your financial goals and budget to decide which is the better option for you. However, you need to choose a good financial adviser.