Is an IRA or 401k Really the Best Plan for My Money?

If you've spent a majority of your life working a 9 to 5 job for a mid to large size company, you likely have some type of retirement or 401k plan. Most financial advisers will suggest establishing this type of plan and diversifying by investing in various stocks and bonds. These advisers often have both very little interest and understanding regarding the value of gold-backed investing and a precious metals IRA (individual retirement account).

Many people follow this plan hoping to have established a sizable nest egg when retirement becomes a reality. However, with the steady devaluation of the dollar and account/banking fees, the actual amount left in a retirement fund may be much smaller than what one would expect. This is not surprising, due to the fact that most financial advisers make a living selling stocks and portfolios and have a strong interest in following the "Wall Street Agenda" while minimizing the value of gold-backed investing.

This is affecting people all over the country, as many are now reaching retirement age and coming to the harsh realization that they may not have nearly as much money saved as they once thought. More people are becoming aware of these pitfalls and are taking steps to protect themselves and ensure that they don't face similar outcomes as the ones described here.

Having a retirement plan does not have to mean leaving oneself susceptible to the devaluing currency of the dollar, or any other loopholes or fees that could compromise the viability of your nest egg. By supplementing a 401k with a precious metals IRA, this can help to ensure that the value of your retirement account will continue to grow, as precious metals like gold and silver are some of the most stable investments and are practically immune to devaluation.

The reason gold is such a reliable and safe investment, is mainly due to the fact that - unlike conventional stocks - it's value is not in any way dependent on the performance and growth of any particular company. Despite the annual fees for storing these precious metals, they are still a popular and profitable investment strategy that is recommended by many of the top financial experts in the world. It is best to think of investing in precious metal IRA's as a form of portfolio diversification.

Opening a precious metal or gold IRA is simple and easy and takes a little over a week to get up and running, and you can transfer any of your existing IRA or 401k money into a gold-backed IRA, also known as a gold 401k rollover or gold IRA rollover. After filling out the necessary forms and account documents, the rollover process will then be initiated. The gold 401k rollover or gold IRA rollover process is tax-free and is also free of any penalties. At this point, you can decide which type of precious metals that you would like to include in your new IRA profile.

It is important to remember that a rollover of either a 401k or paper-based IRA account is essentially a liquidation of whatever is contained in these accounts and you will want to check with your custodian throughout the process to make sure that you qualify under certain exemptions such as financial hardship and other criteria.

Originally a gold-backed IRA was the only type of precious metal that could be used for these types of accounts, however, in 1997, the U.S. Government approved other forms of gold and silver to also include platinum and palladium. Precious metals IRA's can now be backed by gold, silver, platinum and palladium.

Paper Investments Must Beware of Inflation

Gold is now a better investment than ever and is one of the only smart alternatives still available due to current inflation rates that are showing no signs of slowing down. Inflation is directed related to the printing of more paper money and the resulting devaluation of the dollar.

This all started in 1971, when President Nixon got rid of the gold standard, making it so that the paper dollar was no longer backed by gold. Since then, this drastic shift in the monetary system has resulted in the government printing more and more paper money each year that has no physical backing or value behind it. The more money that is printed each year the further the value of the dollar will decline until it potentially becomes worthless.

If you invest in gold, you will be taking one of the most significant steps towards helping to preserve your individual assets and savings. Gold has the capability of holding its value and has a long and steady track record confirming this fact. This means that investing in gold will help protect your hard-earned savings against the devaluation of currency like the paper dollar. The value of gold never goes down and is universally accepted as a viable currency and can be bought and sold around the world.

Not only is a gold IRA a stable investment, it is also a physically secure one. All precious metals IRA's are stored at the Delaware Depository, where they are all stored in high security vaults and are insured for up to one billion dollars. If you have heard of some of the recent scenarios in which entire retirement savings were lost due to poor investment decisions by brokerage firms and other unforeseen events, you already know how insecure investing in stocks and other retirement funds can be.

If you're considering a rollover of your current 401k plan or paper-based IRA into a gold or precious metals IRA, you may want to look into setting up a "self-directed IRA". You will have to make sure that you are in total compliance with certain rules and requirements, such as only using the allowed forms of gold and other precious metals and that your assets are properly stored in a secure depository and not under your own possession.

Whether you choose to go with a larger gold investing service or set up your own self directed IRA, you will be making a smart choice that will likely put you ahead of all of your peers who are still contributing to a less stable paper based IRA that will be highly susceptible to further decreases in the value of the dollar.