Author Topic: IRA Advice  (Read 1514 times)

Offline chuck_b

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IRA Advice
« on: October 25, 2012, 11:33:47 AM »
I currently have an IRA that I haven't contributed anything to since rolling over a 401k five or six years ago. I have a 401k through my current job that is getting some contributions (to take advantage of employer matching).

I am trying to decide between rolling my IRA over to a precious metals IRA and buying gold/silver with a depository or cashing out the IRA, paying the 40% tax+penalty, and buying gold/silver that I can physically own. I do have some concern with the government nationalizing retirement accounts but 40% is a significant penalty to choose.

I have a very small amount of silver in my possession today. The majority of extra funds are going towards overall preps (food, fuel, medical, etc) and some towards precious metals.

What have some of you in a similar situation done? Any other recommendations or thought processes?

Offline Prepper Recon

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Re: IRA Advice
« Reply #1 on: October 25, 2012, 05:59:23 PM »
Please don't cash it out and pay the penalty! If you buy gold and silver in an IRA, you have no access to it. For me, that defeats a large part of the reason I own gold and silver. If you totally don't trust the markets, just let it sit there until you feel more comfortable. There are some decent utility stocks that pay good dividends. NLY and AGNC both act as intermediaries in the MBS market. They make money on the spread between the rate at which banks borrow and lend. They each pay over a 10% dividend. Even if you just let it  sit there in cash til you turn 59.5, you are making 40% by not paying the penalty and tax. I think you will be glad you waited if you do.

Just make a savings plan to purchase gold and silver in the future. Allocate some portion of each check, 5% or what ever, it will add up.