My 401k has no precious metals fund.It has stock and bond mutual funds and a money market fund.I have all money parked in the money market fund which I`m not crazy about with the falling dollar.It is drawing 5% at the moment.
Taking my money out and paying a 10% tax penalty doesn`t seem like a good alternate either.
Should I stick with the 5% on the money market or take the tax pentalty and buy some gold and silver?
Some things to consider:
Personally, I don't most 401ks since they do not give you the flexibility that IRAs do and many times they are stacked heavily with mutual funds that are not the best performers. The other suggestions here are all to be considered since most of the Gold Bugs here are fairly well-read (even if opinionated ::)) in favor of gold...like me)Again, consider reading Ed Slott's book,,,you have alot at risk here by not doing the right thing for you....GL!
how about taking a loan out of your 401k and invest it in physical PM's. I did just that earlier this spring. I had my contributions maxed out, so I dropped it down to just what i had to get maximum company match, then took out a loan with a payment that matched what i had been putting in over the min. something to consider.
if u feel the need to buy Gold
open a account at a discount broker like scottrade.. and simply buy the GLD or SLV for silver.
however only do this if u are planning to hedge against inflation for long term.
short term we may be approaching a top for gold.. i own gold myself and still own it... i am planning to sell it next few weeks, months.
Why can't you switch to an institution that does have a precious metal funds, like Vanguard? Another perhaps? Roll it over there and invest away! Pay the closure and paperwork costs should be minimal in comparison. Can't you do something like that?
depends on your other investments. If you have PM elsewhere and can hedge the 401k then leave it in but if that's all your savings then yes you'd better take some out and put it into gold. If gold returns 40% again this next year you'll still be way ahead.
BTW I'm in the smae boat and have my 401K in UST MM. but I ahve substantial PM outside and use a little leverage to compensate for the 401k. It sucks as every option is down like 10% this year save the MM. I'll be 59.5 in 6mos. and I'll draw it down.
I would say to go gung ho into GLD.
Iz why I now officially have 60 % metals, mainly gold investments in my portfolio.
But then my cautious side kicks in and says to just diversify a tad.
Take of this what u may. Hope this helps and GL. Tata, davdddd