Image from iraphysicalgold.com
Image from iraphysicalgold.com

Everyone is aware that an Individual Retirement Account (IRA) is one of life’s necessities to help you be prepared for a stage in your life when you are too weak and incapable to earn for your daily sustenance. However, not many people attempts to rethink for a new investment strategy to maximize their “nest egg” so as to maximize the benefits it offers at a time it will be used. Considering today’s volatile market, 401k to gold IRA rollover can be one of your best options.

“The Individual Retirement Account can be used for investment of real estate, stocks, bonds, private equity and many others. If you want to invest for gold, this is termed as a “gold IRA”; says Daniel Sentell; a director of a New York based financial services.

Anyone who already has a 401 (k) or IRA (regardless if it is Roth or regular), can roll this over into a gold IRA. However, take note that rollovers are only allowed when you change jobs. This is a time when you need to make a decision on what to do with the retirement fund which you have on the employer whom you are about to leave. The good news is; IRA can be rolled or transferred to a new custodian with ease.

If you decide to have Gold IRAs, you can decide whether to opt for Roth or Traditional type”, stated Sentell.

A lot of people are also wondering whether to roll over the entire retirement money into old or just take a part of it.

“Gold may have a going up rate. However, they also come with markups, depending if you opt for coins, gold bullion, proofs and others”, Sentell further stated. “Each type of gold has its own pre-requisites too when the investor wants to sell the gold. Hence, if you want to invest on these things, make sure you are fully informed on what you are getting into”, he added.

There are certain fees that a gold investor has to pay including the seller’s fee, retirement account set-up, storage fees and custodian fees. You need to know them in details before investing for a Gold IRA.

Since the stock market can be unpredictable, it is still wise not to place all your eggs in one basket. According to Sentell, it is suggested not to roll more than 1/3 of your IRA to gold. This is the best way to secure your Individual Retirement Account.