IRA conversion... what are others doing?

[Pennybug]

OK... 1st... I know that you cannot convert an IRA to Gold/Silver and hold on to it physically. It must be through an approved 3rd party. I have an IRA that's drawing about 4% and I'm thinking about putting it into Gold/Silver mix (thoughts here?)... but I like the idea of being able to have "readily predictable" access to it in the event of a SHTF situation or otherwise, but I don't want to be in violation of any IRS requirements. So I'm wondering if anyone has any known LEGAL solutions?

The alternative I'm also considering is to close down the IRA, get the cash and pay the fines/taxes, and buy physical gold/silver to hold. I'm a little anxious about the gov't views on private retirement funds as well right now... Thoughts on this route?

PS... I REALLY WISH I HAD done this back when I opened this IRA! I was young and simply needed a way to protect my retirement funds when I left a certain job. If I had put it into a gold or silver IRA like I should have... MAN! Oh well hind sight is 20/20. I'm just hoping that gold/silver continue to climb if I go this route. FYI... this is not the bulk of my retirement funds (maybe 1/3 to 1/2 or so)... and I'm young... so I'm ok with the risk.

[myfundsarelow]

hello penny bug leave your nest egg alone at 4 % you are in,the drivers seat gold and silver are fine just buy small amounts at a time it will grow over the years so will your nest egg ,dont rush in to selling your future pension money PEACE !!

[beauanderos]

hello penny bug leave your nest egg alone at 4 % you are in,the drivers seat gold and silver are fine just buy small amounts at a time it will grow over the years so will your nest egg ,dont rush in to selling your future pension money PEACE !!

I disagree, adamantly. True inflation is north of 7% right now, problably closer to 11 to 12%. Staying in a fixed return vehicle at 4% is a guaranteed losing situation. You MUST be in PM's to keep pace (and hopefully outpace) inflation and keep your purchasing power intact. Contact ICA at McAlvany.com to learn about converting your IRA to precious metals, and also look into transferring your IRA into a self-directed brokerage account which would allow you thousands of options as to how to weather the coming hyperinflation. Consider placing your funds in Tocqueville Gold Fund (TGLDX) while you decide what to do. Also... you don't have "years" to get your financial boat seaworthy. You might have twelve months... if we're lucky.

[Silver Addict]

I think in the not too distant future, those with tax deferred accounts (IRA's, 401k's, etc) will be required to invest in treasury bonds. Most likely start out at a percentage of your account. With Social Security running permanent deficits, they won't we the buyers anymore. How long until they are huge sellers? China doesnt seem to want to buy much anymore.

The Federal Reserve can't buy them all, can they?

Just something to think about.

[PennyPauper]

Silver addict you may be right,they will try anything to save the sinking ship.
Forget freedoms and financial choice they are planning to force you to invest "safely"
There was been discussion on this thread viewtopic.php?f=9&t=3008
about bullion confiscation.If your IRA is invested in gold/silver and they then force you to invest those funds into treasurys
would that not be a backdoor way to take your bullion or not allow you the freedom to invest as you see fit?
I know many people think it would never happen but the plan is very advanced,been in the works for years now.
Mandate all workers have a ira,then mandate you invest them safely in bonds.

http://news.coinupdate.com/us-departmen ... unts-0431/

http://www.wnd.com/?pageId=196173

http://www.dcemploymentlawupdate.com/tags/s-3760/

[argent_pur]

I think in the not too distant future, those with tax deferred accounts (IRA's, 401k's, etc) will be required to invest in treasury bonds. Most likely start out at a percentage of your account. With Social Security running permanent deficits, they won't we the buyers anymore. How long until they are huge sellers? China doesnt seem to want to buy much anymore.

The Federal Reserve can't buy them all, can they?

Just something to think about.

On the subject of treasury bonds, I read a Wall Street Journal article today that said US gov't officials are considering issuing treasury bonds with maturities longer than 30 years, since interest rates are currently so low, they can take advantage of cheap financing. Mexico is now issuing some bonds with---are you ready---100 year maturities!!! The U.S. is considering perhaps 50 years, thinking 100 is just too long, but there is demand for these bonds. Talk about kicking the can down the road...

[Pennybug]

Yeah... Silver Addict... you've hit 50% of the nail on the head there on why I'm looking to change over. Beauanderos... you got the other half of it. When you look at these aspects, it seems to make pretty good cents. Given that I have more $'s tied up in the stock market (and that's doing quite well for me right now)... I lean to taking that IRA to silver/gold since I don't mind the risk. Thing is... Silver Addicts concerns... though well researched... I don't think that moving this IRA to silver/gold will immune me from this... unless I cash out and buy physical... in which case I get the penalties.

Keep up the good dialogue everyone! It's much appreciated! PS.. Ill look into the recommendations beauanderos.... THANKS!

[Lemon Thrower]

i cashed out and paid the penalties. in addition to the concerns mentioned above, the bush tax cuts will eventually expire.

when you cash out, there are basically 3 concerns. first, you pay taxes on it if its not a roth. but you would pay that eventually, and if you wait it will be at a higher rate. second, there is a 10% penalty if you are under 59, etc. third, possible AMT tax. so its not free to cash out but you will have more investment options. you'll also have backup liquidity and will be able to buy now while premiums are reasonable.

was not able to cash out my 401k without quitting my job so i took the max loan from it.

[Sheikh_yer_Bu'Tay]

hello penny bug leave your nest egg alone at 4 % you are in,the drivers seat gold and silver are fine just buy small amounts at a time it will grow over the years so will your nest egg ,dont rush in to selling your future pension money PEACE !!

I disagree, adamantly. True inflation is north of 7% right now, problably closer to 11 to 12%. Staying in a fixed return vehicle at 4% is a guaranteed losing situation. You MUST be in PM's to keep pace (and hopefully outpace) inflation and keep your purchasing power intact. Contact ICA at McAlvany.com to learn about converting your IRA to precious metals, and also look into transferring your IRA into a self-directed brokerage account which would allow you thousands of options as to how to weather the coming hyperinflation. Consider placing your funds in Tocqueville Gold Fund (TGLDX) while you decide what to do. Also... you don't have "years" to get your financial boat seaworthy. You might have twelve months... if we're lucky.

My investment ideas are close to beauanderos'. I really don't see an investment option that will keep pace with inflation other than commodities. PM's are the best commodities.

The difference between me and beauanderos' investment ideas is that I don't trust anyone (and you shouldn't either). IF hyperinflation happens... anyone holding your money will panic and treat it as their own. Take SLV & GLD. They will DEFAULT on their customers and run away with the metals. After that happens, you will be lucky to get to talk to their lawyers. A court settlement will pay you pennies on the dollar, and those pennies will be paid in worthless FRN, NOT PM's.

Desperate governments do desperate things. Look to South America and see what those countries have done to people's government sanctioned savings/retirement accounts. It ain't pretty.

Invest in things that inflation will help, hot hurt. And remember Delawhere Jack's advice: "If you don't hold it, you don't own it."

[franklin]

If you do have a Roth and fear that it won't be there (or in the same form, investment-wise), there are options for withdrawal without penalty before 59.5 such as higher education tuition and fees for immediate family. This could prevent you from dipping into other forms of savings over which you currently have more control.

[BamaJoe]

I cashed out last fall. Yes, the penalty and taxes hurt like hell, but I saw no other option. At some point in time I'm convinced the government will go after pension and IRA's, just like a number of countries in Europe already have. Once the politicians get desperate enough they will take them. After all, they gotta keep paying for the bread and circus's as long as possible. When they do move it will have to be without warning. If there was warning then too many people will try then to cash them out. My first guess is that when they move they will be converted to government bonds paying squat interest wise which will eventually become worthless due to hyperinflation. Just think, one day your IRA just MIGHT be enough to buy aloaf of bread - if you are luckly.

Dumped all of it into nice shiny things except 5k that I kept to add to the 5K I was already using to rotate in and out of halves to sort. Even with the down month sorting I had in January I ended up with over $500 of melt worth of halves. That's 5% I made on the 10k I have set aside as working funds to sort. Not bad for one month.

If you really trust the government to look out for you and do the right thing then keep it in an IRA. I don't.