[lucy_lucy]

Hello, I have recently decided that I no longer trust the stock market. I am wondering what options I have... Is there any way to convert a 401k to cash or gold and not accrue the penalties & taxes immediately (ie held by a neutral party)? Thank you

[ordinaryguy]

The answer to your question is yes, you can transfer the assets to a money market fund (cash) or a gold mutual fund or other vehicle, but I would urge you to rethink your strategy. Putting all your assets in cash represents a choice of near zero investment return in exchage for near zero risk of losing your capital. Gold is a commodity, nothing more, and putting your assets there is an extremely risky choice--far riskier than a broad stock market index fund--so if risk avoidance is your goal, go with cash and accept the near-zero return. It sounds like you need some basic education on the fundamentals of investing and how to manage the inevitable tradeoff between risk and return.

[ScottGem]

Actually the answer is no. If you are not of retirement age and are still employed by the company sponsoring the plan then you CANNOT take the money out without penalty. Even if you were to invest the money in a self directed IRA, a rollover option is only available for a plan distribution not a withdrawal.

However, you do have an option. You can talk to the plan admins to see if they can add investment options to the plan. But Guy has a valid point. Investing in gold is still investing in a commodity.

Most plans have a fixed income which pays a guaranteed rate. There are mutual funds that invest in precious metals. I agree with Guy that you need to educate yourself more about investing.

[Fr_Chuck]

First why don't you trust it, mutual funds spread over a wide set of funds.

Have your money split between 8 good funds, each diversivied.

Also you can have your 401 invest in gold and other investments with the right fund.

But considering I am still making over 12 percent and had been doing 16 for the past 2 years with my worst mutual fund doing 8 percent, I have no idea why you don't trust it.

But if you want to put it in a safe, you can move it over to an insurance company like Met or Woodsmen that that gives you a guarntee of 3 percent on your IRA or 401K investment

If you cash them out you wll pay penalties, but they can be transferred to another protected fund.

Gold has a lot of risks, and while its past 10 years looks good, its 20 year is not that good it is first back to where it was in the early 80s

[Unclesamsux]

Hello, I have recently decided that I no longer trust the stock market. I am wondering what options I have... Is there any way to convert a 401k to cash or gold and not accrue the penalties & taxes immediately (ie held by a neutral party)? thank you

Look at Monex.com and check out their Atlas accounts. I don't think you can go into it from a 401K but possibly you can roll over the 401K to an IRA and then with the IRA set up an account with Monex. The Atlas account allows you to buy plat, gold, silver at only approximately 25% of the spot price. Risk is volatility in the precious metals. However if you are aware of what is happening in the real world you will not be afraid of moving into PM's. Leverage with Monex and you profit with the equity as spot prices move upwards. Similar to flipping real estate. Also look into Perth Mint certificates out of Australia as an alternate to owning physical. Allocated, and serial numbered bars. Do not use pool accounts. Luck to you.

[Grounds_Keeper_Willy_00]

Hello Lucy,

I am not sure what you base your distrust of the stock market on but you are very perceptive.

Large banking houses and multinational corps largely control the stock market. Few people have done the research needed to understand that the stock/bond markets are a contrived, mostly worthless, mound of paper promises much like our dishonest fiat currency system which greatly over represent the real world.

On the surface it looks like a great way to invest for the future (and I was heavily invested for 14 years) but the reality is that it is little more than a mechanism to draw avaerage folks in and then rob them when they are fully invested.

The stock market continues to be grossly overvalued since the "crash" of 2000 and this latest rally in the DOW is very narrow and when adjusted for inflation does not represent a new high from 2000.

Gold can be a volatile investment but at the moment, with the Fed printing new dollars out of control it is far less risky an investment than the stock market as a whole. Plus gold can never go to zero value - paper can.

Be well

[ScottGem]

On the surface it looks like a great way to invest for the future (and I was heavily invested for 14 years) but the reality is that it is little more than a mechanism to draw avaerage folks in and then rob them when they are fully invested.

I'm not going to say I disagree with much of what you said, but I do have to dispute this statement.

The stock market is simply a way for companies to raise capital by selling an interest in the company. A share of stock represents an partial ownership interest in a company.

Some stocks entitle the owner to a share of the company profits through dividends. People buy and sell these shares based on the amount of dividends that will be paid or a feeling that the companies value will increase.

Now I won't dispute that the value of shares can be and are manipulated in many ways. Nor will I dispute that anyone who invests in the market needs to do their homework. But to make the statement that the market is just a way to sucker people and rob them sounds more like sour grapes from someone who had a bad experience then an accurate depiction of the market.