Where Do I Put My 401K After Retirement?

Where should I put my 401k money after retirement?

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By the time you near your 50s, you should have most of the money you will need to finance your retirement years. While this doesn't mean you should stop investing, it does mean making money moves that will help you protect your existing savings as you continue to grow more wealth. That's because continuing to pursue an aggressive growth strategy without protecting the majority of your retirement funds can lead to devastating losses. If you do lose your retirement savings after 50, you may not be able to fully retire.

This situation is one common way many seniors find that they can't enjoy their retirement. Even a financial loss after you retire can send you back to work on either a full or part-time basis. Fortunately, there are ways for you to continue earning on your retirement funds without facing those extreme risks. Choosing a modest investment vehicle, such as CDs or money market accounts, can help you earn interest on your money. Another option, which provides more consistent growth potential and better protection, is to invest in precious metals.

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What if You Don't Want to Invest in Stocks and Funds?

The easiest way to enjoy some of the benefits that precious metals investments provide is by using your 401k or traditional IRA account to buy stocks, ETFs, and mutual funds related to the precious metals industries. These paper investments allow you to invest in gold, silver, and other metals in an indirect way. While you won't own gold and silver yourself, you will have a financial interest in the companions that mine, process, and hold these physical assets.

Using paper assets to invest in gold and silver will give you some of the protection offered by these options. For example, gold futures won't experience the same losses when the stock market loses value or crashes. In that way, your investment funds will be protected under most circumstances. There are other benefits that you can't experience with these types of paper investments. To enjoy the full range of advantages, you must invest directly in gold and silver. This involves a lengthier startup process, but, once you're set up to start buying precious metals, you'll find that it's just as simple as putting your money into any other type of investment.

Where Do I Put My 401K After Retirement?

Why Investing in Precious Metals is a Smart Move

Even though there are many options for protecting your savings while also growing your money, few offer the benefits provided by precious metals. Using your savings to invest in physical metals will protect the money you have grown in the following ways.

Gold and Silver Will Appreciate

You don't have to be an economist to see how inflation gradually occurs over time and drives up the prices of goods and services. This is the result of the dollar losing buying power, making physical products worth more. Just as cars and trucks, groceries, and jewelry increase in value gradually over time, precious metals become more valuable. A gold bar you bought in 1970 will have the same buying power or better today than it did 50 years ago. While the value of the dollar has dropped, the value of precious metals has increased.

You Will Always Have Your Precious Metals

Once you buy gold and silver, you will always have it stored in your own vault in a government-approved depository. When a stock loses value, the money you have invested in it is gone forever. Even if gold momentarily drops in value, you will still own your gold bar. You have already paid for this product, so it's yours to keep for as long as you like. When gold values start to increase again, that gold bar will regain its value. You can decide when to sell it, trade it, or how long you will keep it.

You Can Liquidate Your Precious Metals

Keep in mind that liquidating or selling a gold bar before retirement age and withdrawing that money is the same as withdrawing from any 401k or traditional IRA. You will have to pay income taxes and early withdrawal fees. Even so, having access to that money can help you survive through lean times, such as a recession. Since most precious metals companies offer simple and fair buyback policies, you will have faster access to your retirement funds. If you're retired and you run out of money one month or you decide to take a short vacation, you can easily access the funds you have invested in precious metals.

Precious Metals Perform Better Through Economic Downturns

When a recession does strike, many people are caught unprepared, and this includes being able to modify their investments in time to avoid significant losses. This isn't something that will concern you as a precious metals investor. When stocks and funds lose value due to a recession, investors turn to gold and silver to help them protect their money. This increased demand drives up the value of most precious metals. If you already own precious metals in the form of bars and coins, you'll be a step ahead of the game. In fact, this may be a good time to sell your precious metals since you can set a higher price to meet that increased demand.

Best Precious Metals Investment Companies:

Where Do I Put My 401K After Retirement?

How Do You Open a Self-Directed IRA for Precious Metals

As you might already know, the IRS won't let you use the funds in your 401k or traditional IRA account to directly buy precious metals. Before you can begin investing in gold and silver, you will have to open a self-directed IRA and choose a precious metals seller. You can use the glowing guide to go through that process.

Choose a Precious Metals Provider

Your first step in this process is to choose a self-directed precious gold IRA company. These are companies that sell precious metals that have been approved by the IRS. The bars and coins you buy through the company will meet the government's standards for fineness. When looking for a company, it's important to explore their services and their approach to customer service. Essentially, you should look for a company that values building lasting customer relationships rather than those solely interested in selling products.

A good precious metals IRA company will have transparent fees and plenty of information available that you can use to learn about precious metals investing. Having access to these resources will help you determine the best products to help you protect your savings before and after your retirement. Most companies partner with self-directed IRA custodians and government-authorized depositories, so you will want to look for those resources as well. The company you choose should have assistance available to help you through the rest of this process.

Initiate Your Rollover

While your self-directed precious metals IRA company will help you process your traditional IRA or 401k rollover, you should know something about this process. Begin by deciding which type of rollover you want to initiate. You can opt for an indirect or direct rollover.

An indirect rollover involves requesting a check for the amount you want to roll over into your self-directed IRA account. You can do a rollover for the full amount in your account, or you can simply roll a percentage of your savings over into the new account. Regardless of how much you choose to put into your self-directed IRA, it's important to deposit the check with your self-directed IRA custodian as quickly as possible. Simultaneously, be sure to complete and submit the rollover paperwork with the IRS. If the funds aren't deposited in a new retirement account within 60 days, the IRS will view the transaction as an early withdrawal and apply the appropriate penalties. Similarly, failing to submit the paperwork on time can also result in facing those taxes and fees. While you may feel better about depositing a paper check, there are too many things that could possibly go wrong. For this reason, most financial advisors recommend the direct rollover.

A direct rollover involves using a wire transfer to move funds from one retirement account to another. Since your self-directed IRA custodian will receive the funds instantaneously, you can avoid facing the early withdrawal penalties common with indirect rollovers. The rollover information is also submitted to the IRS faster through your precious metals IRA company. They will assist you with the process to protect against costly errors. As soon as the rollover has been processed, you can begin buying precious metals.

Start Investing in Gold and Other Precious Metals

Once your rollover has been processed, you can start using your savings to buy gold, silver, and other precious metals. Another reason the direct rollover is recommended is that your money will spend less time sitting idle. When you deposit a rollover check, the time it takes to process that transaction is time that your money won't be growing. In most cases, you can begin buying precious metals within a day or two.

The precious metals IRA company you choose should have already helped you set up a vault with a depository. If not, you will have to open an account before you can buy your gold and silver. The IRS won't allow you to store precious metals from your self-directed IRA in your own home. Even after you retire, bars and coins must be stored in your vault within the depository. There are fees associated with maintaining a vault, so review those costs in advance. The fees are typically associated with maintaining the depository's general condition and security.

While choosing a depository is easier when you start an account with the depository recommended by your precious metals IRA company, you can also choose a different facility. The only requirement is that the depository must meet government regulations and must have received IRS approval. If you find another depository with lower costs or other benefits, you are free to start an account with that facility.

Before you start buying any precious metals, take the time to consult your self-directed precious metals IRA company. They should have support staff who can suggest specific educational resources that will help you learn more about investing in gold and silver. These resources should include up-to-date market information that will demonstrate how specific metals are performing in the current market. This information will help you select the best precious metals for protecting your money before or after you retire.

Where Do I Put My 401K After Retirement?

What Are the Best Companies for Your Precious Metals IRA?

If you are nearing retirement age, you’re already at a point in life in which you should be thinking about safeguarding your funds. It’s never too early to start shopping around for a precious metals IRA company. If you open an account with a company that doesn’t meet your needs, you can always switch companies later. However, that involves going through this process a second time. It’s best to research companies thoroughly to choose one of the top companies in the industry. Here’s a brief overview of the three best companies, according to investors, consumer advocacy groups, and financial analysts.


From the very beginning, Augusta Precious Metals will be on your side and offer all of the assistance you need. They will answer any questions you have about opening an account with them and they offer one-on-one consultations to help you learn about the startup process. They will communicate directly with your 401k or traditional IRA manager to help you process your self-directed IRA rollover. Another benefit they offer is a transparent fee schedule that will help you anticipate costs in advance.

They keep a Harvard-educated economist on staff to ensure all of the educational resources are accurate and easily understandable. They want every customer to be able to make wise investing choices, and their information on precious metals investing helps them achieve this goal. They do require a startup purchase of $50,000, which means young or new investors may have to wait before opening an account with them. If you’re retired and looking for a safe place to protect your wealth, this minimum should seem manageable.

#2. Goldco


Here is another excellent choice for retirees who want to protect their money while continuing to increase their wealth. Even before you open an account with them, they want you to feel confident in your investment decisions. To that end, they will provide you with a free startup kit that includes multimedia materials to educate you about investing in precious metals through them. They offer an entire library of information that you can use once you open your account.

Goldco assigns a representative to work with new customers, so you won’t feel frustrated or confused about starting your self-directed precious metals IRA. They will help you process your rollover and ensure your paperwork is properly filled out and submitted to the IRS within the 60-day window. This company stands out among investors for the friendly and knowledgeable customer support they provide. They encourage every customer to use their staff to help them make better decisions about precious metals investing, and they provide this same level of dedicated customer service for as long as you maintain an account with them.

Started as a family business in Los Angeles, American Hartford Gold has maintained that small business approach in spite of its consistent growth through the years. They offer startup and rollover assistance to help any investor open an account with them. You can schedule a consultation with one of their advisors to help you outline your reasons for opening a self-directed precious metals IRA. Whether you want to grow your wealth by investing in gold and silver or you just want to make sure your savings are secure, they will help you meet your financial objectives.

As is the case with the other companies listed here, American Hartford Gold partners with self-directed IRA custodians and authorized depositories. This helps simplify the process for those new to investing in physical gold and silver. This company also has a generous buyback program that has been rated as one of the best in the industry. Their guarantee will help you feel confident that you’ll get the best offer for your precious metals when it comes time to liquidate them. Their fees are transparent and they keep them as low as possible to help their customers get the most out of their investments. These features exemplify the company’s dedication to building long and lasting relationships with their account holders.

Final Thoughts

Retirement planning involves anticipating your future investment needs since amassing more wealth means protecting the savings that you do grow. While putting your money into precious metals doesn't entirely eliminate risks, a loss due to devalued gold or silver is rare. Even when a loss does occur, your precious metals will regain their value in time. This gives you physical assets that you can rely on to help you enjoy a full and relaxing retirement.