What to do With a 401K
Anyone planning to retire, may not have any clue of the financial situation they are about to get themselves into. Many people think that their savings are enough to get them through their retirement, but that is a myth that often gets busted once you begin life after retirement.
What to do Before Going into Retirement
Before you actually retire, there are some considerations and calculations that you need to make to ensure that your financial situation remains stable and you get the support you need to live out your retired life comfortably and peacefully. First off, you should calculate an estimated amount of money you would need per month and the general rule of thumb is 70 to 80% of your regular monthly income. Next, you need to make a game plan about how you will go about to ensure that you will get that amount monthly.
You may have a 401K that is already in place, but investing your 401K in something that will be fruitful and will provide you with the income you need is something that requires careful consideration and research.
The Best Use for your 401K
Gold has started gaining a lot of attention as one of the most sustainable and stable investments currently available. It is a precious metal whose value is constantly increasing and with this upward trend, there is no question about it being the best investment choice for your 401K.
Before you go around investing your 401K in gold, you should read up the rules and terms of your 401K and see if you are permitted to invest in gold and what the conditions of such an investment are. You have many different options for investing gold that does not involve simply buying and selling of gold. You can choose any of the options you feel is best suited for your needs and the options include:
Gold Mining Stocks
This would allow you to invest in shares in gold mining companies and depending on the market, your investment can prove to be quite fruitful as the shares would move in accordance to the price of gold.
Gold exchange traded-funds allow for the trading of gold, gold futures, options and shares and it provides a more stable investment for your 401K. You can even sell your ETF whenever the market opens.
Fidelity Select Gold Fund is a low-cost investment that is perfect for anyone looking to test the gold investment waters before completely jumping in. It can provide you with the chance to get a hang of gold investment and eventually grab bigger opportunities.
Your 401K is the one financial source that you may have to use to get a stable source of income during your retirement and making a wise decision about it is essential for you to do before you embrace life post retirement. Thus, be certain that the decision you make is an informed and beneficial one.