What is a 401k Account?
To combat the rising cost of pensions during the 1980’s, the 401k account was born. Named after the subsection of the Internal Revenue Code by the same designation, a 401k account is simply a savings plan that permits workers to invest a portion of their pay before taxes are taken out. In addition to salary and health benefits, these accounts have become an important part of almost every comprehensive employment package. In many cases employers will match a percentage of the employee’s contribution in an effort to lure and retain high-quality talent.
What is a 403b Account?
A 403b is a public employee’s version of a 401k. Employees that work in schools, government agencies or non-profit organizations typically have 403b pre-tax contribution retirement plans.
What are the Disadvantages of a 401k and a 403b?
401k and/or 403b accounts have distinct limitations that make the transfer of accrued monies from these accounts into gold, a particularly attractive proposition.
- Since they are backed essentially by paper assets, the 401k and the 403b are subject to the strength, weakness and volatility of the economy.
- Plan participants have little control over their money as an account advisor is often assigned on behalf of the employer to manage fund movements and investment choices.
- The plans themselves have limited investment options or variety and typically feature a combination of stocks, bonds and mutual funds.
- If an employee needs to take money out of a given plan before retirement or under the age of 59 ½ years old, he or she should expect to pay both heavy penalties and interest.
So while these accounts are sound savings plans, their limitations are undeniable. And when it comes to maximizing your retirement dollars and securing your future … flexibility, diversification, and growth are essential which is why it’s important to consider precious metals like gold and silver. A gold IRA can reduce the volatility of your retirement portfolio and protect your purchasing power!
Transferring a 401k or 403b into Precious Metals!
With the mounting global economic crisis and our domestic debt and deficit issues, many savvy investors are converting 401k monies into precious metals, espeically gold. In order to do so, you must first you must check the terms and conditions of your existing accounts. If they do not allow for gold and other precious metals investments it may necessitate rolling your funds into a self-directed IRA. Keep in mind that some plans have roll-over penalties and others do not allow accrued dollars to be moved at all unless an exemption is cited like leaving employment or financial hardship. The key is to get the funds released and set up an IRA with the option to purchase precious metals. Smart investors are placing both physical gold and silver in their Individual Retirement Accounts (IRAs). Gold and silver have become important options for hedging against increasingly likely global economic collapse.