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There are many different reasons to put part of your wealth or 401k into gold or other precious metals. Many websites on the internet will encourage you to invest all of your wealth in precious metals. We believe that is an unwise decision.
Websites and firms recommending investing all of your wealth in gold or other precious metals are, in our opinion, reckless and potentially greedy. They could be making these recommendations purely to earn more significant affiliate commissions.
As with all things in life, a balanced approach is probably the best option—never have all of your eggs in one basket.
Always seek the advice of an excellent, independent, ‘whole of the market’ financial advisor, but be aware that most financial advisors do not make any, or the same level of, commissions when you invest in precious metals. For this reason, if they are not recommending putting at least some of your retirement funds into precious metals, ask them to explain their rationale.
Your advisor will almost certainly recommend a portfolio split into various stocks and shares with different risk profiles, maybe holding some property assets.
Before deciding to invest any of your wealth in precious metals, make sure you have a clear idea of what you want to achieve by holding some of your wealth in gold or precious metals.
Many precious metal buyers and people looking to add precious metals into their IRA are doing this to diversify and to have a broader range of investment holdings as a means of minimizing risk. Such risks as a crash or sharp decline in the stock market, a global pandemic, severe climate change, civil unrest or war might adversely affect these kinds of investment holdings.
We would undoubtedly endorse a strategy that minimizes the risk of losing a significant amount of your wealth. The need for financial safety is essential as you get older and you are either coming up to using your retirement fund or you are already drawing down from your retirement funds.
Precious metals have performed very well when we have seen the types of crises that I have highlighted above. Investors turn to a physical asset like gold to protect their personal wealth.
Ultimately, it is your choice as to what percentage of your 401k plan you wish to hold in gold, and this choice will depend on your attitude to risk and as well as other things such as your age and the age at which you want to retire.
We surveyed our subscribers, and the percentage of their retirement pots that they had invested in gold and other precious metals ranged from 3% to 60%. We feel 60% may be a little high and 3% a little low. The average holding was 37.28%.
You can put hundreds of different things into your IRA; this means creating diversity can be pretty straightforward. However, gold, platinum, palladium and silver are safe investments that have withstood the test of time and protected retirement incomes for millions of people like you.
Our recommended maximum would be 50%, but we are not financial advisors. At Bear Lake Gold, we evaluate the companies that provide gold and precious metal IRA accounts.
See the table below for or top recommendations, or Click the Best Gold IRA Companies Link for a more in-depth look at our reviews.
You cannot directly invest in Gold within the majority of 401k plans to turn part or all of your 401k to Gold see this page
Yes you can perform a 401k to gold IRA rollover see this page for more details