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jsv433 · Feb 17, 2009, 07:14 PM

I have an old 401k from a previous employer which is small (less than $10,000) but not small enough that I would want to lose it. It was from a period of slightly more than a year, and I really haven't even thought about it until lately. I have no intention of bailing out on my 401k with my current employer, (I have worked there a considerably longer period of time) but would I be wise to roll that old 401k into some kind of a gold-backed investment just for a little hedge? Things are starting to look a little dicey.

ScottGem · Feb 17, 2009, 07:16 PM

You would have to roll it into a self-directed IRA and then buy a precious metals fund under the IRA

jsv433 · Feb 17, 2009, 07:32 PM

I guess I am asking whether you think it is time to be buying precious metals funds, or am I better off just rolling it into my current 401k? Maybe the time has come to have a little gold accessible? Thanks for your help.

Fr_Chuck · Feb 17, 2009, 08:20 PM

You most certainly would not want to withdraw it from a sheltered tax plan and not put it in some other plan, you would have to pay taxes and penalty, so you would be losing at least 30 if not 35 percent in taxes and penalties.

But if you want to purchase gold, you can do so by putting it into a IRA that will allow that investment though the IRA.