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Converting a 401(k)/403(b) to a Silver IRA

Converting a 401(k)/403(b) to a Silver IRA

What is a 401(k) retirement 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) retirement 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 main drawbacks of having a 401(k) or a 403(b)?

Despite the tax-friendly benefits that 401(k)s and 403(b)s offer, they come with a number of disadvantages. These types of drawbacks should make you seriously consider making the transition to a Silver IRA.

  1. 401(k) and 403(b) retirement savings plans are made up of only paper assets. While this makes them easy for your account custodian to manage, it gives you no protection against market volatility and the devaluation of paper currency. In fact, these plans are entirely at the mercy of the strength—or weakness—of the economy.
  2. Only a limited number of asset types go into these accounts—bonds, stocks, and mutual funds. This severely narrows your investment choices.
  3. It might be your account in name, but you don’t have direct and full control over it. Unlike self-directed precious metals IRAs, 401(k)s and 403(b)s are managed by assigned custodians who decide how to move your funds and invest on your behalf.

You don’t have to accept the financial drawbacks that come with having a 401(k) or 401(b). The option to transfer or roll over any portion of your savings into a Silver IRA can guarantee greater growth potential and a more secure financial future. Financial experts all agree that the best retirement plans are diverse, flexible, and able to grow. Gold Alliance’s precious metals IRAs maximize your portfolio’s growth potential and protect the future of your hard-earned savings.

Switching your 401(k) or 403(b) into silver and other precious metals

Both at home and internationally, the debt crisis is mounting, and experts predict that the global economy will get worse before it gets better. If you are thinking of joining the savvy investors who are wasting no time in converting their 401(k) or 403(b) funds into silver and other precious metals, the first thing you need to do is to check the terms and conditions of your current IRA account. It’s very unlikely your current account will allow precious metal investments—if this is the case, you’ll need to open a self-directed IRA and roll your funds into it. Only then are you ready to start investing in silver, gold, or other precious metal!

Expert investors are going for gold and silver. Their intrinsic value means they are the strongest and most stable commodities in the face of financial risk. But you’re in no way limited to these metals. Gold Alliance offers you a wealth of options for investing in a range of precious metals. Get in touch with one of our Gold Alliance experts today at 888-734-7453 and we’ll go through the best choices that meet your financial needs.