What are my best 401k Plan Options?

401k Plan Options - While you are still young and able to work, you should look into your options for the best 401k plan. A 401k will make it easier for you to save money so that you will have enough for your retirement. If you have no idea of what a 401k is and how it can help you, then you should continue reading this article because this will discuss the basics of this kind of retirement plan.

What Is A 401k?

Basically, a 401k plan is a type of retirement plan that is paid for by your employers. If you sign up for this type of plan, a part of your monthly salary will get deducted and placed into a 401k plan. This account is held by your employer until such time that you need to retire, or if you go from one company to another.

Most 401k plans make the employers match the contributions of the employee by a certain amount and the account is handled by an investment firm that makes sure that your money is not stagnant and will gain interest.

Different Types of 401k

There are actually many different types of 401k retirement plans, and they all have their own pros and cons, which is why it is recommended that you diversify your investments. To give you an idea on the different kinds of 401k retirement plans, here are some of the most popular choices:

Stocks – Investing your 401k funds in stocks is one of the best ways that you can make your money grow. But if you make the wrong kinds of investments, then there is a chance that you can lose it all; so you really should take good care that you place your retirement funds into something sure.

Real Estate – Investing in properties is also a good way to make your retirement funds a bit more dynamic. The only problem is that you need a lot of money so that you can invest in real estate; and even though the risks are lower, there are still quite a lot of them that you need to be wary about.

Gold and Other Precious Metals – If you want to diversify your 401k portfolio, then you should invest a part of it in precious metals like gold, silver, or platinum; but gold is the most preferred of them all. If you look at the prices of gold in the past few years, then it does seem clear that it will only continue to rise in the foreseeable future; this makes gold one of the best investments that you can ever make.

It is now entirely possible to open a gold 401k account. This is due to its growing popularity as an investment vehicle and that people are recognizing that the returns can be far greater than the more traditional investments like stocks.

Reasons Why Investing in Gold is A Good Idea

If you are unconvinced about the power of gold, then you should take a look at these advantages that it has over the other types of investments:

Gold Can Be Bought From All Over the World – The price of gold is standard, so regardless where you got it from, its price will still remain the same. So whether you got your gold from South Africa or in Europe, you will be paying roughly the same amount (excluding taxes).

Gold Is Impervious To Inflation – Because the value of gold is constant wherever you go in the world, its value will not wane if the inflation rate in your country becomes too high. So when you invest in gold, you are actually preventing your money from losing its value due to inflation. With the past few years of economic turmoil, traditional investments and savings have been at the mercy of governmental fiscal policies and many have seen their savings dwindle in value.

Gold Comes In Different Forms – If you want to invest in gold purely for the precious metal itself, then you should buy gold bullion. If you want something that does not take too much space and can be secured easily, then you should get gold mining stocks. But if you want to add collectibility to your investment, then you should get gold coins, preferable antique collectible gold coins.

You Can Even Get Gold Online – There are many online gold investing companies where you can buy your choice of gold; whether it be coins or bullions. Not only is buying gold online convenient, it is also safe. Some online companies have been in business for many years and have superb reputations. Their consultant advisers are extremely knowledgeable and follow a ‘no pressure sales’ philosophy.

Important Things That You Need To Know

Even though gold is a relatively secure investment, it is still recommended that you only invest a portion of your 401k in it, and not the entire amount (even though it may be the greater portion of your portfolio). It is always wise to ensure that you have a balanced portfolio.

In Closing…

It is really never to early (or too late) to plan for your retirement, so you should start now while you still can and get a 401k plan or review your existing arrangements.

If you are looking for a great way to invest your 401k and make it grow even faster, then you should invest your money wisely and shop around. When it comes to wise investments, we are great advocates of the benefit of gold investing.

Unlike other investment choices, the value of gold is inflation-proof and it is easy to invest. As the worldwide economy is still floundering, governments are pulling out all the stops to try and bolster the financial system. This has resulted in the devaluation of currencies and extremely poor rates of return for traditional investors and savers.

Many are turning to precious metals and for good reason.

References: IRA FAQs - Investments - Internal Revenue Service