How to Buy Gold with a Thrift Savings Plan – A Simple Guide
Are you still wondering how to buy gold with a Thrift Savings Plan? Well, if you are, then you have come to the right place. You might be thinking about investing your money. However, finding the right kind of investment can be tricky. Investing in gold through a Thrift Savings Plan (TSP) can be a great choice. But where do you even start? Well, here are some things that you need to know about investing in gold using TSP.
1. Thrift Savings Plan Basics
So, what is TSP? If you are part of the armed services, then you have probably participated in the TSP plan. This is a retirement plan that the government of the United States is offering to its employees in the armed services. If public workers have the 401 (k), the armed services have the TSP plan. The TSP plan works similarly to the 401 (k). With the TSP plan, employees can defer some money from their paychecks to a retirement account.
2. Investment Options with Thrift Savings Plan
Another thing that you might not know about the TSP plan is the fact that employees have several investment options. These investment options are limited. However, they can mix the options as desired. There is a total of 10 investment funds that make the Thrift Savings Fund. Some investment funds are more significant than others.
3. TSP Plan Rollover
If you participate in the TSP plan, you can make a full withdrawal once you have left the armed services. You can also make a rollover to an IRA, the 401k plan, or other destinations. You can also invest in gold if you participate in the TSP plan. That is why you need to know how to buy gold with a Thrift Savings Plan.
4. Types of Gold to Invest
You can only invest in 10 investment funds using the TSP plan. You can manage where your money is being directed in the plan. However, if you do not manage it yourself, your money will be directed to the G fund. Unfortunately, this also means that you will not be able to invest in physical gold and other metal using the TSP plan. The TSP plan is kind of restrictive when it comes to precious metals.
5. Physical Gold vs Gold Stocks
You can invest in two types of gold. These two include physical gold and gold stocks or paper gold. Investing in paper gold is considered to be riskier than investing in physical gold. This is because the price of paper gold tends to be more volatile than the price of physical gold. Other than that, you will also find a lot of regulations and taxes with gold stocks. Mining gold stocks can be pretty expensive. And that is why you will find a lot of risks in investing in gold stocks.
If you are thinking about investing, then you should certainly consider gold. If you are a participant in the TSP plan, then there are several things that you need to know. You have to know about how to invest in gold through the TSP plan. Once you have figured that out, you will be able to manage your investments easily. Hopefully, you now know how to buy gold with a Thrift Savings Plan.