Who Here Has Cashed Out of Their IRA?

[silverflake]

Who is under 65 and has cashed out of their IRA? I am worried, I am aware of the world, I know the "system" is a house of cards yet I can't pull the trigger. Am so hesitant to cash out, pay the taxes and penalty and pay off the house....

Words of wisdom anyone?

To those of faith, I am praying on it. No immediate answers yet.

Keep stacking

[beauanderos]

GOTS... Jim Sinclair says "Get Out of the System!" There are just too many hazards to fiat currency and banking for me to feel comfortable with the way we used to do things. FDIC won't be there if you need it, you are an unsecured creditor at your bank in the event that they need a bail-in... which could happen overnight due to systemic risk the banks face in the event of a derivatives induced meltdown, the dollar is due for a reset (depreciating overnight by as much as fifty percent), your IRA's are tempting targets for the thieves in the White House, inflation continues to chisel away at your savings.

I dumped everything last year (two 401k's and four IRA's) and bought more metals, not exactly the best timing, but better in my thinking than any of the black swan alternatives. I just turned 63 and figure I can manage my own precious metals annuity plan better than leaving the outcome uncertain and in someone else's hands.

[68Camaro]

Cashed out the IRA. Can't yet do that with the 401K, not quite as old as ole Ray above, but I did take out the max loan.

[barrytrot]

I'm in the minority, I added substantially to my IRA last year. All employer contribution, but still a reasonable amount.

Do I have faith in the system? Marginally

But here is my thinking: Do I have faith that the government won't round up the "cooks" that collect metals? Nope.

So I'm pretty much hosed either way, so I diversify. I have metal. I have IRA. I have property. I will add to each of them as I have the ability to do so.

[HD-Daddy]

Some good advice, above. I have diversified, I have existing IRA's 401k but I have pulled some out of the market to invest in tangibles. The system is doomed to fail but TPTB will try and maintain this along as they can. Spread out the risk. Check out a "checkbook IRA". This education IMHO is priceless.

[TXBullion]

Who is under 65 and has cashed out of their IRA? I am worried, I am aware of the world, I know the "system" is a house of cards yet I can't pull the trigger. Am so hesitant to cash out, pay the taxes and penalty and pay off the house....

Words of wisdom anyone?

To those of faith, I am praying on it. No immediate answers yet.

Keep stacking

My question goes towards the second part, what is your reasoning to use the proceeds to pay off the house?

[johnbrickner]

I still have an IRA. Half of it is my "what if I'm wrong" about the decline of the empire investments. The other half are into mostly gold mining Mutual funds. Interestingly enough, both are doing well right now.

On the other hand, I understand the principle of your IRA is not penalized or taxed, only the gains. Also, you can begin taking money out of your IRA anytime prior to 59 1/2 but it has to be done by the rules. I seem to remember it being based on the actuarial tables in Internal Revenue Service Publication 590. So, lump sum your principle, and take out a yearly sum without penalty and use this to help pay down the house and consider shifting some of your IRA over to Gold mining mutual funds. Buy PMs with the money you take out.

I agree with Jim Sinclair getting out of the system however you can imagine is the right thing to do to the extent you can do it.

[silverflake]

TXBullion - using the money to pay off house is converting it from paper assets to a tangible (the house, the (small) land around it) and getting rid of the only debt I have. By the way, I am 45 years old. Paper assets can theoretically go to zero. My house could very likely never go to zero and will always be a brick and mortar (literally) place of shelter and warmth.

However, I am seeing some good info. The cynical view is that we are hosed anyway so you may as well be diversified. But, gosh I have built the IRA from when I left jobs and turned over the 401-K monies. Tended it like a garden and have done well, even in 2008. Would hate to see the government either confiscate it or make me convert it to government bonds.

Well, keep the opinions coming. More info is more power.

In the meantime, keep stacking.

[TXBullion]

TXBullion - using the money to pay off house is converting it from paper assets to a tangible (the house, the (small) land around it) and getting rid of the only debt I have. By the way, I am 45 years old. Paper assets can theoretically go to zero. My house could very likely never go to zero and will always be a brick and mortar (literally) place of shelter and warmth.

However, I am seeing some good info. The cynical view is that we are hosed anyway so you may as well be diversified. But, gosh I have built the IRA from when I left jobs and turned over the 401-K monies. Tended it like a garden and have done well, even in 2008. Would hate to see the government either confiscate it or make me convert it to government bonds.

Well, keep the opinions coming. More info is more power.

In the meantime, keep stacking.

Ok got it. I just ask because it seems a contrarian view so if you don't have faith in fiat and the government, often times this is anticipating inflation or hyperinflation. Fixed debt is a great thing (in inflationary environments) to have because debt becomes easier to pay down with future inflated in dollars (assuming its fixed debt). Granted this could all be wrong (extremely wrong if you have deflation) but one view on paying down the house. I would see what what your goals are i.e. want to live debt free, buy income producing assets, buy assets with long term growth potenial, have a hoard of PMs, food ammo etc. You should use your goals as a basis for determining your actions and coming up with your plan on how to proceed. I was talking with a mortgage broker yesterday and standards are really tightening up. Banks want clean files and such when Fannie is buying the loans. If this trend continues, it may become more of a challenge to tap any equity in your home via a HELOC or cash out Refi etc which would limit your options should you need liquidity

[beauanderos]

fixed debt is great in a hyperinflationary scenario... assuming those creditors don't come up with some congressional mandate to modify the rates so that they don't get hosed. Don't think it could happen? They're the ones with the lobbyists

I'm not totally out of my 401k... I just drew it down to nothing and started over again last year. Still putting in six percent to get the three percent match... this is the side bet that I'm off about PM's and that fiat will sustain accountability for another half dozen years. If I'm right about PM's (I am )then at some point I will liquidate enough of the stash to go debt free (pay off the 3% credit card balances).

[TXBullion]

Anything is possible. I would guess if we go re routing and discarding the legality of liens , loans, mortgages and such , we have much larger issues to be worried about at that point anyway