The benefits of converting part of your 401(k) to gold

By David Matthews

Using your 401(k) funds wisely will allow you to have the most ideal retirement possible. After a few successful investments you could earn enough profit to make a down payment on a beautiful property and take an amazing vacation as soon as you’re able to walk away from your job. On the other hand, if you leave your 401(k) funds untouched and let them depreciate along with the value of the dollar, you’ll probably have a lacklustre retirement, living month to month off of a substandard income that isn’t much better than the revenue you were generating as part of the workforce. Make your retirement worth the wait by taking advantage of the following 3 benefits of converting part of your 401(k) to gold.

Cashing in on the Gold Boom

As the global economy continues to struggle more inventors are buying gold to safeguard their assets, resulting in a higher demand. Mining companies are expanding their operations in order to keep up with the supply, increasing their cost of operations, and since gold is finite resource the supply is ever-dwindling. Rising demand and decreasing supply is contributing to gold’s continual rise in value and is setting up a situation that will probably make thousands of smart investors very rich. If your current 401(k) plan with your employer allows for gold investments you can initiate the process very easily. If not, all you need to do is open an IRA and rollover some of the funds in your 401(k) into the new IRA account to begin investing.

Increased retirement funding

At the moment your 401k fund is a bit like a fireplace mantle, it is sitting there collecting dust until you’re able to use it. If you choose to withdraw it early you’ll have to pay a 10 percent early withdrawal fee, and you’ll also have to face other taxes and penalties depending on the situation. However, you can choose to put those funds to good use right now without withdrawing them by investing in gold and capitalizing on the inevitable gold boom. Imagine being able to buy whatever you want and living like you’re permanently on vacation! This is the type of lifestyle you can have during retirement if you take advantage of the gold boom and buy a large amount of gold before the price peak occurs during the next decade.

Portfolio protection

Instead of investing in risky instruments like stocks, exchange-traded funds (ETFs), or mutual funds, consider the advantages of securing a portion of your retirement investment portfolio by purchasing gold with it. Once you have the gold bullion in your possession, or stored in an online holdings account, you can be sure that those assets will not depreciate over time. In fact, your funds will most likely continue to grow until the price of gold peaks between 2015 and 2020. Essentially, investing in gold lets you protect your retirement form mediocrity by safeguarding a percentage of your portfolio from depreciation and facilitating optimal returns.

David Matthews is a 401(k) investment specialist and retirement advisor who conducts market analysis and writes for Gold-401k.org.