What is a 401(k) account?
The 401(k) was created in the 1980s in response to the rising cost of pensions. It’s essentially a retirement savings plan that allows eligible employees to invest some of their salary before taxes. In this respect, the 401(k) is an employee benefit like any other and often forms an important part of any employment package. Some employers match a percentage of their employees’ contributions in an effort to attract or retain talented employees. With a 401(k), the payout you’ll receive during retirement will be based on the market value of the account.
What is a 403(b) account?
A 403(b) plan—or a tax-sheltered annuity plan—is the public employee’s equivalent of a 401(k). Anyone who works in government agencies, public schools, and non-profit organizations has a 403(b) pre-tax retirement savings plans.
What are the disadvantages of a 401(k) and a 403(b)?
Despite the tax-friendly benefits of a 401(k) and a 403(b), some severe limitations should make you seriously think about completing your own 403(b) or 401(k) to gold IRA rollover.
- Most employers offer limited pre-selected investment choices through their 401(k) and 403(b). These plans only feature combinations of stocks, bonds, and mutual funds.
- Because your 401(k) or 403(b) retirement savings plans are only backed by paper assets, there’s no real protection behind them to safeguard you from market volatility. In fact, the strength (or weakness) of the economy alone determines the value of these assets.
- As your retirement savings account is under the management of an assigned advisor, you don’t have direct and full control over your fund movements or investment choices.
The financial disadvantages of 401(k) and 403(b) plans are undeniable. But they’re avoidable. By rolling over or converting your 403(b) to a gold IRA, you can maximize your retirement savings and secure your future. All financial experts agree that diversification, flexibility, and growth are essential components of a solid retirement savings plan. Gold Alliance’s Precious Metals IRAs protect your financial future and enhance your portfolio’s growth potential.
Transferring a 401(k) or 403(b) into Precious Metals
The debt crisis is mounting, both domestically and globally. And with the global financial forecast looking so bleak, educated investors are rushing to convert their 401(k) funds into gold and other precious metals.
If you’re one of the many who consider switching, you first need to check the terms and conditions of your current IRA accounts. Be aware that most may not allow for precious metal investments, in which case you’ll have to roll your funds into a self-directed IRA that comes with the option of purchasing precious metals.
Gold and silver are leading the way for smart investors. Because of their intrinsic value, they offer the strongest protection from any future financial risk. But they’re not your only precious metal options. Call one of our Gold Alliance experts today at 888-734-7453 and we’ll talk you through all your options for 401(k) to gold IRA rollover or other ways to invest in precious metals based on your financial needs.