Rolling a 401k to gold/silver

[slacker921]

I have a smallish 401k (actually a 401a) from a previous employer that I've neglected to do anything about.. it's less than $10k. I submitted an app to Europac a couple of weeks ago and got a call from them about setting up an account but they haven't set the account up. I tried to make it clear that while the 401k I have to rollover is small I'll be adding additional cash to grow the account. Ah well. They apparently don't need my business.

So I'm looking into setting up an account with some other place that will allow me to direct the funds of an IRA into gold/silver and also standard equities and mutual funds. I do have IRAs set up and other retirement investments, so this would just be an element towards diversification. I'm not putting all of my eggs into this basket.

What I've found is that Sterling Trust will handle a rollover into an IRA then... those funds can be used through Bullion Direct to buy/sell metals on their exchange and the physical metal would be stored there at BD.

Has anyone tried this? Is there a better route? Would it make more sense to just roll it into an online brokerage account and buy GLD, SLV, etc from that account?

 

[LibertyEagle]

http://mcalvany.com/IRA.php
As I recall, they use Delaware Depository.. http://www.delawaredepository.com/

 

[slacker921]

http://mcalvany.com/IRA.php
As I recall, they use Delaware Depository.. http://www.delawaredepository.com/

What do you do when the dust starts to settle and you want to get out of PMs and back into investments as the price of PMs drop? .. because if they go up then at some point they'll drop back down. When that happens do you roll the IRA out of McAlvany and to some other place?

Are you using them? Can you buy/sell coins as the market goes up and down?

 

[LibertyEagle]

What do you do when the dust starts to settle and you want to get out of PMs and back into investments as the price of PMs drop? .. because if they go up then at some point they'll drop back down. When that happens do you roll the IRA out of McAlvany and to some other place?

Are you using them? Can you buy/sell coins as the market goes up and down?

Call them yourself, is my best advice to you. Kevin Orrick is who I talked to there (McAlvany).

Note: You can sell anytime you want. The only role that McAlvany (ICA) plays in this is that they sell you the gold. It's stored at Delaware Depository. You can use someone else if you want. When you want to get out of PMs in your IRA, you can sell them and put your investment elsewhere.

Well, I just looked on their site and it appears they use Sterling Trust for IRAs. They do use Delaware Depository for something though.

 

[SevenEyedJeff]

Doesn't putting 401k money into gold and silver funds defeat the purpose of owning the metals? If things get bad I would be worried about not being able to receive it.

I would use my non-retirement funds to buy physical metals, and put the 401k money somewhere else. Just my 2 cents. DYOD.

 

[LibertyEagle]

What I'm talking about are not funds. You are buying and storing physical metals and storing them in a vault. Now, if you're talking about the possibility of the government confiscating 401Ks and IRAs, well that's a different thing altogether.

 

[slacker921]

Doesn't putting 401k money into gold and silver funds defeat the purpose of owning the metals? If things get bad I would be worried about not being able to receive it.

I would use my non-retirement funds to buy physical metals, and put the 401k money somewhere else. Just my 2 cents. DYOD.

From reading up on it you can receive the physical metals but you pay the tax hit from withdrawing early. Moving 401k money into PMs makes sense if it's going to hold it's value while all other options like mutual funds, money markets, bonds, etc in your 401k are dropping.

And where are you putting your 401k funds? I'm pretty limited to either money market (not insured..), bonds (which is a bubble about to pop..), or mutual funds (which are tanking).

 

[LibertyEagle]

I'm pretty limited to either money market (not insured..)

Money Market funds ARE insured now. I think anyway. At least until the end of 2009.

 

[AlanT]

I have a smallish 401k (actually a 401a) from a previous employer that I've neglected to do anything about.. it's less than $10k. I submitted an app to Europac a couple of weeks ago and got a call from them about setting up an account but they haven't set the account up. I tried to make it clear that while the 401k I have to rollover is small I'll be adding additional cash to grow the account. Ah well. They apparently don't need my business.

So I'm looking into setting up an account with some other place that will allow me to direct the funds of an IRA into gold/silver and also standard equities and mutual funds. I do have IRAs set up and other retirement investments, so this would just be an element towards diversification. I'm not putting all of my eggs into this basket.

What I've found is that Sterling Trust will handle a rollover into an IRA then... those funds can be used through Bullion Direct to buy/sell metals on their exchange and the physical metal would be stored there at BD.

Has anyone tried this? Is there a better route? Would it make more sense to just roll it into an online brokerage account and buy GLD, SLV, etc from that account?

Not sure if this has been addressed anywhere else here, but you can simply roll your 401k or IRA into a Self-Directed IRA (aka a "Gold IRA") and invest in precious metals, stocks, even real estate.

Yes the metals have to be held in an approved depository, but you have more flexibility now. Check out some reviews of Gold IRA companies and see if it's the right choice for you.

Otherwise, as SevenEyedJeff says, just use non-retirement funds to buy and hold your own PMs.

 

[Zippyjuan]

Responding to a five year old question? But welcome to the forum.