Convert 401K to Gold

[ginger]

I saw this and was wondering if it was a good idea. With our dollar constantly losing value and my only retirement choice thru my employer being a 401K, the future looks really dismal. I see no sense in putting money into my 401K, but then again- you have to save for the future. Maybe this is a good thing to look into.
Since there seems to be so many knowledgable people out there, I thought I would see what anyone's opionion might be about this...
https://secure.swissamerica.com/offer/IRA.php?tcode=SA-IRAbanner

Own precious metals now with little out-of-pocket cash! Save on your taxes simply by rolling over your IRA or 401k.

Now is the time to convert some of your paper assets into precious metals without any tax penalties or new contributions, simply by converting an existing IRA, 401(k) or other retirement fund into a "Self-Directed Precious Metal IRA".
....
Q: Will I physically hold the metal?
A: No-If you purchase gold or silver within your existing IRA you will not take possession of the metal. It is
stored at a depository in your name. Once you reach the age of 59½ you may then take delivery without
penalty. The depository, Goldstar Trust Company, uses HSBC bank USA, a major long-standing bank wellrespected
in the area of precious metals depository services.
Q: How long does the transfer process take?
A: Each application is unique and may vary. On average, the
process is completed in two weeks. Using your existing IRA
information, we will help you complete the paperwork.
Q: Will I have a tax implication?
A: No-there are no tax implications for transferring assets
from one qualified retirement plan into another.
Q: Will I incur a penalty?
A: No-there are no penalties incurred for transferring assets
from one qualified retirement plan into another.
Q: Is this expensive to set up?
A: On average, the setup fees range from $150 to $325.
These fees are solely based on the amount being transferred.
Q: Is there a minimum amount I must transfer?
A: Yes-your start up amount must be $5,000 or greater.
Q: What types of metals are allowed in retirement accounts?
A: All U.S. Gold, Silver and Platinum American Eagles coins, and certain other bullion coins or bars that meet
IRS requirements

[chel0524]

The only problem I have with it is if you only have the "paper" on the gold, you wouldn't be any better off. Now, if you could get the gold and have it at home in a safe place......

[ginger]

The only problem I have with it is if you only have the "paper" on the gold, you wouldn't be any better off. Now, if you could get the gold and have it at home in a safe place......

I hear you.
I guess it couldn't be tax or penalty free to do it that way. From what I understand, they buy gold for you - with your 401K money that your are converting to gold - and put it away for you until retirement, that way you are not taking money out of your 401K now with huge penalties and taxes to buy the gold. This is why you cannot actually have your gold now, you have to wait till your at least 59 1/2. I'm just thinking that no matter what, I am going to be putting away in my 401K. I don't know when the rapture will happen, so I still need to be saving.
But why invest in other stock that could tank when our dollar fails or whatever. .

Q: Will I physically hold the metal?
A: No-If you purchase gold or silver within your existing IRA you will not take possession of the metal. It is
stored at a depository in your name. Once you reach the age of 59½ you may then take delivery without
penalty. The depository, Goldstar Trust Company, uses HSBC bank USA, a major long-standing bank wellrespected
in the area of precious metals depository services.

[JenGC]

I hear you.
I guess it couldn't be tax or penalty free to do it that way. From what I understand, they buy gold for you - with your 401K money that your are converting to gold - and put it away for you until retirement, that way you are not taking money out of your 401K now with huge penalties and taxes to buy the gold. This is why you cannot actually have your gold now, you have to wait till your at least 59 1/2. I'm just thinking that no matter what, I am going to be putting away in my 401K. I don't know when the rapture will happen, so I still need to be saving.
But why invest in other stock that could tank when our dollar fails or whatever. .

Good luck with that. My 401K doesn't even give an option to buy gold. I haven't worried about it, personally, because I won't even be eligible to get it out for another 20 years. If we are still around then, it won't be worth a dime anyway.

I agree that if you want some gold to carry you through. I believe it will be the only saving grace as far as currency is concerned because gold will be...well GOLD if we get into a depression type scenario.

If the rapture happens, that 401K SHOULD go to your next of kin, but who knows what kind of chaos will go down when billions of people disappear at the same time? No proof that you are dead? That will be very hard. I won't have any relatives here after the rapture (I hope that is true..that is what they tell me at least) so it will just go back to the company or whatever they do to unclaimed money during those times.

[SnoDog]

I would not do it. I believe in being diversified (eccl. 11:2). Having a slice of gold is useful for diversification, but I would never have more than a slice. Much too risky, and gold has been a poor long term investment.

[ginger]

I'm 35 now, so I have a long time until retirement too. I don't even know if my 401K would let me do it either. I'm still kinda researching this.
I figure I need to save no matter what, if the rapture happens before I retire - what do I care where the money goes after that - it won't matter anymore. But if the rapture doesn't happen and things still get much worse and we are still here maybe this will help. Who knows, it could be another 100 years or so until the rapture.
I keep hearing about gold all the time to protect your investment. I don't really know a lot about it. I have also heard people say it doesn't do well long term too, like SnoDog said. Maybe it just helps to protect against inflation, which gets worse and worse every year. Our dollar is just loosing value every day. I would definetly just put a portion of my investment into it, not all of it. Probably just buy a chunk of gold now while the price is lower than it will be in the future and just keep it. Then from now on keep investing in my 401K the normal way.