I have thinking for a while about starting a PM IRA. I'm sure this has been discussed but i can't find any threads to this matter. I would appreciate your thoughts and ideas about this. I looked into new directions and their fees seems to be competitive with others
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ancona
Praying Mantis
I wouldn't keep a single nickel in an IRA.
The whole IRA and 401K thing is nothing but a giant scam as far as I'm concerned. The whole premise is that you get to save the money without paying taxes on it today, and presumably, when you retire you will be in a lower tax bracket so the burden will be lighter. I call bullshit on that one. Why not simply pay your payroll taxes on the money now, buy the silver or gold and then sit on it yourself? Why pay someone a fee every single month or quarter to hold something that should be in your own safe? How long until you retire? If it's more than a few years, the fees you will pay are going to outstrip any tax benefit you may realize upon sale of the metals. Also, I think it's a huge leap of faith to think that those silver or gold bars and coins are somehow safe from the greedy, thieving hands of bankers and brokers. Just look at MF Global. They came in and stole ALLOCATED warehoused gold for which the owners held receipts and took it anyway. I will NEVER allow anyone to direct my assets or hold my metals.......ever. There are zero concrete safeguards to protect me.
I don't know about anyone else, but I have zero faith that my taxes will be lower when I retire than they are right now, and I have less than zero trust that our government won't someday confiscate every single one of those accounts "for my own good" and throw the money or assets in to treasuries because "they're safer". Remember, it's only been a couple of years since that nut job went before congress to propose just that. In addition, she wanted to allow only a certain amount to be withdrawn at a time and if you died before it all got spent, the government got half of what was left.
Don't ever forget that anytime the government sets something up like this, it is never because they want to see you profit. There is ALWAYS an ulterior motive.
*EDIT*
Go to this site and read line 11.
Your 401K doesn't even belong to you, it belongs to the government. In the fine print, it will say "For the benefit of....".
http://www.fischerfinancialgroup.com/358/15-reasons-why-your-401k-may-be-your-riskiest-investment/
The whole IRA and 401K thing is nothing but a giant scam as far as I'm concerned. The whole premise is that you get to save the money without paying taxes on it today, and presumably, when you retire you will be in a lower tax bracket so the burden will be lighter. I call bullshit on that one. Why not simply pay your payroll taxes on the money now, buy the silver or gold and then sit on it yourself? Why pay someone a fee every single month or quarter to hold something that should be in your own safe? How long until you retire? If it's more than a few years, the fees you will pay are going to outstrip any tax benefit you may realize upon sale of the metals. Also, I think it's a huge leap of faith to think that those silver or gold bars and coins are somehow safe from the greedy, thieving hands of bankers and brokers. Just look at MF Global. They came in and stole ALLOCATED warehoused gold for which the owners held receipts and took it anyway. I will NEVER allow anyone to direct my assets or hold my metals.......ever. There are zero concrete safeguards to protect me.
I don't know about anyone else, but I have zero faith that my taxes will be lower when I retire than they are right now, and I have less than zero trust that our government won't someday confiscate every single one of those accounts "for my own good" and throw the money or assets in to treasuries because "they're safer". Remember, it's only been a couple of years since that nut job went before congress to propose just that. In addition, she wanted to allow only a certain amount to be withdrawn at a time and if you died before it all got spent, the government got half of what was left.
Don't ever forget that anytime the government sets something up like this, it is never because they want to see you profit. There is ALWAYS an ulterior motive.
*EDIT*
Go to this site and read line 11.
Your 401K doesn't even belong to you, it belongs to the government. In the fine print, it will say "For the benefit of....".
http://www.fischerfinancialgroup.com/358/15-reasons-why-your-401k-may-be-your-riskiest-investment/
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DoChenRollingBearing
Yellow Jacket
...
@ Mymetals
First, everyone´s case is different. Depending on your circumstances, I would look with great favor on Brother Ancona´s advice. I cashed out my IRA in 2008, paid the taxes and fees, but now the money (and gold) are mine... I am not counting on ANY money from anyone (and it turns out that we are not even eligible for Social Security nor Medicare). But, that´s OK, as we put very little into the system...
You could always drop by your LCS (local coin store) and pick up some Au
gold as your income or assets permit. Hide your gold in the frozen spaghetti sauce (whatever)!
@ Mymetals
First, everyone´s case is different. Depending on your circumstances, I would look with great favor on Brother Ancona´s advice. I cashed out my IRA in 2008, paid the taxes and fees, but now the money (and gold) are mine... I am not counting on ANY money from anyone (and it turns out that we are not even eligible for Social Security nor Medicare). But, that´s OK, as we put very little into the system...
You could always drop by your LCS (local coin store) and pick up some Au
gold as your income or assets permit. Hide your gold in the frozen spaghetti sauce (whatever)!dontdeBasemebro
Big Eyed Bug
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The idea behind the pay tax later part is that when you retire your incone will drop and put you in a lower tax bracket. Even if that part is true, tax rates will never ever get lower than they are today and anyone who isn't close to rertirement in the next few years or is super wealthy will not be retiring anyways. Work until death, that is definately what I am looking at.
So I do the Roth 401k where contributions are after tax but withdrawls are untaxed in the future (once you hit the magic age). That said, I only put in enough to maximize my employer's match, which is most of the few % that they match to. Just sitting in money market I consider this 80% profit minus inflation; sort of like a bank account but with a positive interest rate. Given that the .gov WILL steal the funds someday, I'm ready to cash out on a hair trigger, pay the tax, and walk away with some kind of "profit". Other than metals and other real assets (land, farm, guns, food, etc) it seems reasonable. It is one more basket for me to put an egg or two in since I don't know what exactly will happen.
Ancona is right though, it is a huge scam since the corporations are essentially strong-arming us to put our retirement savings into the stock market, which they get rich off of, rather than just saving or taking a pension in old age. As George Carlin said, they want that money back.
So I do the Roth 401k where contributions are after tax but withdrawls are untaxed in the future (once you hit the magic age). That said, I only put in enough to maximize my employer's match, which is most of the few % that they match to. Just sitting in money market I consider this 80% profit minus inflation; sort of like a bank account but with a positive interest rate. Given that the .gov WILL steal the funds someday, I'm ready to cash out on a hair trigger, pay the tax, and walk away with some kind of "profit". Other than metals and other real assets (land, farm, guns, food, etc) it seems reasonable. It is one more basket for me to put an egg or two in since I don't know what exactly will happen.
Ancona is right though, it is a huge scam since the corporations are essentially strong-arming us to put our retirement savings into the stock market, which they get rich off of, rather than just saving or taking a pension in old age. As George Carlin said, they want that money back.
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There's no perfect answer here. The best suggestion I can make is no matter how you invest your money you should be diversified. Nobody can predict the future and that's the problem here. In general, if the population keeps growing, and demand for "stuff" keeps growing, and you own a diversified basket of assets, your investments will grow more or less at the same rate as everything else. That's your best protection whether we have high or low inflation. Trying to pick an individual asset class that is going to grow faster (or slower) than other asset classes is like trying to pick which horse is going to win a horse race. That's called gambling and not investing. Some people can make a great deal of money gambling. But most lose. And no matter what be ready for a standard boring little emergency where the lights go out for a few days (or longer). Stuff happens. But I consider that more along the lines of emergency planning, and not investing. I would do both.
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