How Do You Buy Gold with Your 401(k)?

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The security of your financial future depends on whether or not you’re diversifying your portfolio properly. Adding a Gold IRA to your portfolio gives you a hedge against market volatility and insecurity. Read this 401k to gold ira rollover guide. Learn how to buy gold with your 401k.

Last Updated: 9/5/2023

Gold has long been one of the most sought-after precious metals available. Its benefits include protecting purchasing power against inflation and an historical hedge against stock market volatility. It has also delivered significant returns in the long-term. That’s why many Americans choose to buy gold with their 401(k) or other retirement accounts.

There are avenues you can take to start acquiring precious metals now. The most common way to turn to physical gold is to open a Gold IRA. If you have a 401(k), you can roll a portion of that retirement savings account into a self-directed IRA, which lets diversify with physical precious metals.

Why roll a portion of your 401(k) over into a Gold IRA?

There are a multitude of benefits to rolling a portion of your 401(k) into a Gold IRA. When you consider what assets your 401(k) holds now, you’ll realize that your financial future depends almost entirely on one class of assets. 

401k to Gold IRA Rollover Guide

Check out our benefits and 3-step guide below to learn the crucial basics you need to know about a 401k to gold rollover. Simply click on the accordion sections to expand about each topic and learn more.

See the 4 benefits of rolling a portion of your 401(k) over into a Gold IRA.

1. Diversifying your portfolio

It’s never a safe bet to put all of your eggs in one basket.

When you open a Gold IRA, you’re diversifying by taking a portion of your portfolio and putting it into physical gold. That’s another benefit of opening a Gold IRA — you actually own the gold you’re investing in.

2. Owning tangible assets is key

Owning physical gold gives you the added peace of mind that your gold cannot be hacked or digitally compromised.

3. Hedging against inflation

Over the last decade, the Fed has been increasing the money supply rapidly. The Covid crisis only made things worse. And now, Biden is ordering more money than we’ve ever seen before so that he can fund his stimulus packages and infrastructure plans.

This all leads to one thing: inflation. As the money supply increases, it dilutes the value of the dollar, and you can watch rising prices on necessities like fuel and groceries.

Gold has long been a way to protect your purchasing power because it cannot be debased. Governments can’t print gold, and there is no way to replicate it. Gold must be discovered and mined. Many Americans are now turning to gold because they know that inflation is already here and it’s about to get even worse.

4. Hedging against other market crises

When the stock market is at an all-time high, you can expect one thing: a correction. It is anyone’s guess when the next crash will happen or how severe it’ll be, but gold has a history of hedging against any market crises.

Take a look at this chart showing how gold performs compared to the last six major market corrections.

Chart of gold during market corrections.

Gold tends to work in opposition to the stock market. That means the portion of your 401(k) in the stock market might go down, but the portion that you have in your Gold IRA may go up, based on the history of gold compared to the stock market.

So, if gold is such a great investment, how can you buy gold with your 401(k)?

How do I buy physical gold with my 401(k)?

We’ve created an easy way for you understand how to roll over a portion of your 401(k) into a Gold IRA. It’s a simple 3-step process:

The 3 Steps to buying gold with your 401k

1. Open a self-directed IRA

Your current 401(k) only allows you to hold publicly traded stocks and bonds. When you open a self-directed IRA, you have more options available on what can be held inside of it. That’s where the experts at Gold Alliance come in. We take the time to show you how a Precious metals IRA works as well as provide you with Gold IRA–approved metals that you can choose from.

2. Fund your account

After your self-directed IRA is open, your dedicated Gold Alliance account executive will help you transfer a portion of your funds from your 401(k) to the self-directed IRA’s custodian account. This account will be in your name, giving you full ownership.

Our specialists will ensure that the whole transaction process goes smoothly.

3. Select gold and silver approved for IRA investment

Once your self-directed IRA is open and funded, the only thing left to do is to now add the Gold IRA with precious metals. We will help you choose the gold and silver coins or bars that best meet your needs and financial goals. We can then help connect you with a licensed and insured depository to store your precious metals.

Start diversifying your wealth today

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