Fidelity 401k Gold - Let the Investment Begin!
Reid Sletten- The Fidelity 401k Gold account is a different type of 401k account since it doesn't offer traditional mutual funds.
- Instead, it offers exchange-traded funds (ETF), which are a low-cost way to invest in a basket of securities, similar to mutual funds, but traded on a stock exchange. 401k plans are employer-sponsored retirement savings plans in the United States.
- They are sponsored by companies and are subject to various rules and regulations. 401k plans are among the most popular retirement plans for workers today. 401k plans are employer-sponsored retirement savings plans in the United States.
- They are sponsored by companies and are subject to various rules and regulations. 401k plans are among the most popular retirement plans for workers today.
The Fidelity 401k Gold account is a different type of 401k account since it doesn't offer traditional mutual funds. Instead, it offers exchange-traded funds (ETF), which are a low-cost way to invest in a basket of securities, similar to mutual funds, but traded on a stock exchange.
What Is Fidelity 401k Gold?
Fidelity 401k Gold is a low-cost, no-load, no commission, and no-fee 401k plan.
Fidelity 401k Gold is a self-directed 401k plan that offers two investment options:
Alexander & Alexander - A gold ETF
Sprott Physical Gold ETF
The Alexander & Alexander fund is designed to track the price of gold. The Sprott Physical Gold ETF uses physical gold as a means of tracking the price of gold. The Sprott Physical Gold ETF approximates the performance of the Solactive Gold Miners Index.
How Fidelity 401k Gold Works
The Fidelity 401k Gold is an IRA account that allows investors to buy gold without triggering any taxable event.
The Fidelity 401k Gold account is self-directed and can be accessed only by Fidelity clients. The gold held in the account is allocated between allocated and unallocated storage accounts that are held in your name, and the assets are not insured by the Federal Deposit Insurance Corporation (FDIC).
The 401k Gold account is intended to complement an individual's existing retirement account holdings. It is meant to help investors accumulate gold.
The account's fees are as follows:
$60 annual fee
$30 account documentation fee
$30 account-opening fee
$30 account transfer fee
$0.35 per ounce for the storage of allocated gold
$0.15 per ounce for the storage of unallocated gold
Limitations of Fidelity 401k Gold
Fidelity 401k Gold is a relatively young product, having debuted in 2019. The 401k plan allows up to 5% of plan assets to be invested in precious metal ETFs, and plan participants can invest in one or all of the following:
iShares S&P 500 Index (IVV)
iShares Russell 2000 Index (IWM)
iShares Nasdaq-100 ETF (QQQ)
iShares Russell Midcap ETF (IWP)
iShares MSCI EAFE ETF (IEFA)
Fees and Expenses
This account has an expense ratio of 0.15%, which is much lower than most mutual funds. This fee covers the administrative costs of managing the account. The fee also includes the $20.00 annual account maintenance fee.
Performance
The account has underperformed the S&P 500 over the past ten years. It has returned 3.26% annually while the S&P 500 returned 9.01% annually. The account has outperformed the S&P 500 over the past ten years. It has returned 3.26% annually while the S&P 500 returned 9.01% annually.
Gold IRA: Should You Open One To Save For Retirement?
The Bottom Line
With a Fidelity 401k Gold account, you can invest in a number of different assets including:
Physical Gold
Precious Metals
Precious Metals - ETFs
Precious Metals - Mutual Funds
Gold IRA accounts at Fidelity allow you to invest in precious metals such as gold, silver, platinum, and palladium. You can invest either in the form of physical gold, gold bullion, or gold ETFs. The account offers separate accounts for individual and joint accounts.
