Gold 401K

Gold 401k Choices

5 reasons to use your brokerage account 401k

If you're one of the lucky employees who have access to a brokerage account in Your 401k plan should be considered for use. In addition to offering a wider range of investment options, a brokerage account, you can take control of your financial future and growth portfolio, regardless of the evil U.S. and international economies may fail in the future.

1) Options mutual funds more – a typical 401k plan may have 20 investment options. At first glance, this looks like a wide choice of menu. However, if one considers that there are more than 20,000 investment funds in stock, you realize that the investment funds in the plan 401k for your business are probably not the best. Using a brokerage account you can choose the fund long-term career best. Preferred Morningstar Analysts (subscription required) is a great way to find funds highest rating of investment in each asset class

2) Reduced costs – too often, small and medium businesses require their employees to pay the administrative costs of their plan 401k. This cost is recovered by offering investment funds that have, or front-loading or a high ratio of expenditure year. If it sounds like your plan and you have a link brokerage account, you can bypass the high fees. Once you open a brokerage account, you can choose not available mutual funds to charge lower annual operating costs. If you do not believe that operating costs are important, consider this:

If 40 years years, had invested $ 500,000 in mutual funds that returned 8% a year, but full 1.3% in fees, costs will reduce the value of the portfolio of 1.5 billion dollars over 30 years. If this same investor reduces the rate to 1%, the loss in terms of expenditure the portfolio is reduced to 1.2 million. It saves $ 300,000 by investing in funds at lower cost!

3) increased flexibility of investments – Most investment professionals have been taught (and teach) that you can build a diversified portfolio in a 401k plan. The following quote from Joshua Dietch, Cerulli Associates, is a good summary of the industry group think about this: "If the average 401 (k) plan has 12 options, in this context, no doubt, you can build a diversified portfolio. "I think this is not only totally false but also dangerous. In the recent economic crisis, stocks and bonds ended with a correlation close to 1. This is exactly the opposite of diversification.

If you use a brokerage account you can build a well diversified portfolio by adding asset classes, such as precious metals, currencies, bonds, agricultural commodities, and adjusted for inflation. My favorite is permanent portfolio Harry Browne diversified portfolio. An explanation of the Permanent Portfolio can be found in the book of Harry's short, Fail-Safe Readers interested in. can find a copy on Amazon.

4) Gold, Gold, Gold (and a little money) - If you're like me, at least he is concerned the possibility of hyperinflation, deflation or collapse of the U.S. dollar. You can have the best stocks and bonds, mutual funds Investing in the world will not help protect your savings in any of these scenarios. What can you help? gold and silver. These two assets were used as a currency for 5000 years and as recently as 1971, gold has always supported the U.S. dollar. I boldly predict that gold and / Or silver used as money again in the next 30 years. point, if you really want to protect their economies, it is essential at least 10% of its portfolio in precious metals. Using the brokerage account in your 401k, you can buy gold in the gold ETF GLD and you can buy money with money, the SLV ETF. A single fund that I like is the Central Fund of Canada, symbol CEF. Central the Fund's assets on a 50/50 gold and silver.

5) Speculation Opportunities – Investing can be much more enjoyable (and profitable) with a bit of speculation added in. About a small biotechnology company with a drug to stem cells the weight of the tube? Why Why not buy some shares? With a brokerage account, you can buy almost anything you want. Currently, my favorite Speculation is a bet that interest rates are rising, much higher. With a brokerage account 401k you could buy a mutual fund Rydex Juno as (RYJUX) the obligations of short duration (when rates instead of interest, bond prices fall). Using your brokerage account you can buy what you can do to spice up your portfolio.

Not all employees with brokerage accounts must be used. If you are a novice investor or have no time or inclination to follow the ups and downs of the economy and markets, it is probably preferable to choose among investment options in your 401k. However, if you have the experience and knowledge, using your brokerage account 401k can be very productive and rewarding.

About the Author

Randall Reinwasser MBA, CMFC is an Investment Advisor and President of 401kFinancialAdvisor.com an SEC regulated investment advisory firm located in Fountain Hills, Arizona. Please visit our website if you’d like to contact me or are interested in obtaining 401k investment advice.

Are You Ready For HyperInflation?