Why Should I Rollover My 401K into a Gold IRA?

Rolling Over A 401k To A Gold IRA Is Important Now More Than Ever

Planning for retirement? If you are contributing money into your 401K, then you may feel that you are doing all that you need to in order to build your nest egg. However, you really don’t have a complete retirement plan unless you have gold in your holdings. That’s why it is important to consider rolling over your 401K into a Gold IRA. If you are still not sure after reading this article, Allegiance Gold can help educate you on the importance of a Gold IRA. Here’s a look at some of the top benefits of adding this important precious metal to your retirement. 

What is a Gold IRA? 

If you have never heard of a Gold IRA, then you may be wondering exactly what it is and how it works. Basically, a Gold IRA is a self-directed retirement account that holds physical gold. The standard IRA rules apply where you can’t withdraw your gold until you reach the age of 59 ½. Also, any contributions to your Gold IRA are tax-deductible. As of 2022, the Gold IRA annual contribution limit for those under the age of 50 is $6,000. For those over the age of 50, the limit is $7,000.

Why Rollover Your 401K Into a Gold IRA? 

Here’s a look at five of the most compelling reasons why you should consider rolling over your 401K into a Gold IRA today: 

1). Diversify Your Retirement 

When you save for retirement, you want to make sure that your portfolio is protected from big downward swoons in the market. In the past 25 years alone, we have seen three major crashes in the U.S. equities market. By holding some of your retirement money in gold, you will inoculate some of your retirement money from big crashes in the stock market. 

2). Move Away from Dollar Denominated Assets

You don’t want to have all of your assets in one currency. That’s because you can’t risk losing lots of purchasing power if the value of that currency collapses. For instance, let’s say you have all of your retirement in a currency that loses 5% of its value per year and your retirement fund is returning – on average – 6% per year. Well, you are only making 1% per year on your retirement in real, inflation-adjusted terms. By putting some of your retirement in a Gold IRA, you will have a physical precious metal that historically holds its value against all currencies.

3). Preserve Long Term Purchasing Power

When you are investing for the long-term, you want to preserve the purchasing power of your wealth. Gold has held its value for thousands of years. Compare that to currencies that have a lifespan of one or two generations. With a Gold IRA, you can almost be certain that a certain percentage of your retirement will hold its value over decades.

4). Free Up Space in Your 401k

As you probably know, there are limits to how much you can contribute to retirement funds. By rolling over your 401K into a Gold IRA, you can free up space to contribute to a new 401K account. This can go a long way to boosting your retirement wealth. 

5). Protection from Long Term Inflation 

Most people don’t like to think about inflation. However, it can happen anywhere in the world. Back in the 1970s, the United States saw double digital inflation that hobbled the U.S. stock market and saw an explosion in the price of gold. If long-term inflation hits over the next couple of decades, your physical gold holding in your Gold IRA will more than makeup for any losses that you could experience in your stock holdings.

How to Rollover a 401K into a Gold IRA 

Chances are that you have a 401K account with your employer. If you want to roll over your 401K account into a Gold IRA, then contact your employer and start the process today. From there, you will need to purchase physical gold and store it with a third party that is approved by the IRA as a gold storage broker. 

Getting Started with a Gold IRA 

Rolling over your 401K into a Gold IRA could be one of the most prudent moves that you can make to protect your retirement. To find out how you can roll over your 401k into a Gold IRA, the executives at Allegiance Gold can help educate you on the process.  Allegiance Gold has become one of the top precious metal firms in the nation for how well we educate our clients. Call 844-790-9191 today for a FREE Gold IRA guide and more information on how you can preserve your wealth.