Gold 401K

what to do with my 401k?

With the us dollar steadily loseing value should i cash it out and buy gold coins?If not, why not?

Leave your 401(k) alone. Keep it and keep contributing to it.

Cashing out your 401(k) would be expensive. There is a 10% penalty (if you are under 59.5 years old) and it is taxed as ordinary income (assume a 25% federal rate and a 6% state rate) and you will lose 41% of it just trying to get it out.

Don’t buy gold. If you go back to the late 1970′s and early 1980′s the dollar was getting hammered and interest rates were sky high. Gold was also very high. Anyone who bought gold back then either lost their shirts or had to wait UNTIL LAST YEAR to break even. It was a crappy investment then and is likely an overbought crappy investment now.

The US dollar goes through cycles just like any other currency (or economy, etc.). The US dollar will come back and gold will come back down.

If you are planning to live here and retire here (US) eventually, keep the 401(k).

good luck!

Garrett Gunderson – 401k Myth