A couple questions, silver/401k

Discussion in 'Financial Cents' started by jasonl6, Feb 28, 2011.


  1. jasonl6

    jasonl6 Monkey+

    So I have a couple questions and want to get an outside opionion on this.

    1) I'm getting around $3500 back on my tax refund this year and am planning on using this for an addition on my house. however the addition will not take place for a couple month so I am considering getting some silver instead of just leaving the cash in the bank. Is this a good idea or not? If yes what type of silver should I look at that I can resell when I am ready for the addition?

    2) I have had an old 401k that i rolled over from a former employer several years ago. It's currently sitting in a ROTH IRA and slowly earning some money after the dive it took a couple years ago. My financial planner is a friend and attends the same church as i do. I have considered closing this out and getting some silver/gold also. But i'm not sure now is the time to do it (25% tax ect) However i don't want to wait till the FRN bottoms out. Any suggestions? Should i stick with all silver or some gold as well? I've research both and looks like silver has had more growth in the last 30+ years than gold. It's also easier to barter/trade than Gold.

    I've talked extensivly with my wife regarding this decision and she is on board. Just looking for some outside opinions and suggestions of things i might not have thought about.

    Thanks
    Jason
     
  2. UGRev

    UGRev Get on with it!

    just a word of mention, if you resell the silver, you'll have to pay taxes on it.
     
  3. TnAndy

    TnAndy Senior Member Founding Member

    1. Cash your refund check, put in the cookie jar and sit on it. Use it later to negotiate cash payments to suppliers/workers on your addition. Do NOT buy silver with that money IF you think you're gonna use it in the next 6mo-year. Silver has run up GREAT in the last few months, and just might continue to do so, but also might take a 25% haircut. In addition, as UGrev points out, you'd owe 28% tax on any profits you made should it go up and you sell it legitimately ( read between the lines ).

    2. On your Roth. IF you take it out, you will owe 10% penalty + whatever income tax based on your rates...most likely that WOULD be a minimum of 15%, so you will take a 25% hit to take it out. I did that years ago, and bought silver at 6 bucks with mine. I'm happy.....the rise has been great, AND I know where it is at night. You need to understand you COULD be waiting 5-10 years for silver to repeat that kind of run up...it could be more, it could be less. Who knows.


    IF you want to keep it inside the Roth, and you have the ability to choose your investments, then move it into CEF ( Central fund of Canada ) or PSLV ( Sprott silver fund). Both of them invest in PHYSICAL silver ( and gold in the case of CEF ), and publish the audited storage results. SLV and GLD are paper scams, that may plunge someday when the holders figure out there likely is NOT the amount of metal backing them they claim.
     
  4. Clyde

    Clyde Jet Set Tourer Administrator Founding Member


    You mean the silver I paid cash for?
     
  5. Falcon15

    Falcon15 Falco Peregrinus

    Only if there is record of the sale Clyde. I would like to see anyone prove a private cash transaction occurred when Ag was say 12.00 FRN's/oz. and you are selling it, for a theoretical profit at 33.00 FRN's/oz - without a coherent paper trail. The beauty of a private "cash" transaction.
     
  6. UGRev

    UGRev Get on with it!

    it would be hard.. but unless the entire trail was cash, it can still be traced. Depends on how bad the IRS wants it.
     
  7. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    I don't own any, but I just find it interesting when the reason the value of the silver is increasing is due to the inflation tax which is a result of f'd up government spending.

    Now we get double taxed!
     
  8. Falcon15

    Falcon15 Falco Peregrinus

    Hypothetically, all of my PM purchases are for cash with no names involved. Cash changes hands for PMs. No muss no fuss.
     
  9. Seacowboys

    Seacowboys Senior Member Founding Member

    Traditionally in times of ecconomic turmoil, silver has maintained a 1/16 ratio to the value of gold. It is now at 1/42 the value of gold. If you are a gambler, go for it. Roll the bones, all you got to loose is your money.
     
  10. jasonl6

    jasonl6 Monkey+

    Thanks for the insite TNANDY. A few things I had not thought of. My IRA is through Ed Jones so I contacted them to see what they offer for physical backed silver and gold. I'm not very optimistic and my take the 25% hit so that i can have somthing in my hands. Even phisicaly backed silver is worthless if you can't get to it. IE SHTF. If i decided to purchase physical which would be best for a barter trade society? Shiny 1oz rounds or pre 64 junk?

    Jason
     
  11. Falcon15

    Falcon15 Falco Peregrinus

    What FRN's? Feh. The intrinsic value of PM's in tangible form is YOU own it. Possession is 9/10th of the law. If you have 500 pieces of paper saying you "own" X of Corporation Y, they are worth exactly the paper they are printed on.
     
  12. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    Buy Junk Silver for commerce. Easiest denomination to breakdown
     
  13. Falcon15

    Falcon15 Falco Peregrinus

    Both IMO, YMMV.
     
  14. TnAndy

    TnAndy Senior Member Founding Member

    I like pre-65 silver, personally, followed by 1 ounce rounds. Most silver for the least FRNS.

    IF you decide to keep it in an IRA, simply open an account at Etrade or similar online broker, and have EdJones transfer the account. If they do a broker to broker transfer, no tax/penalty applies. Then you can 'self direct' your IRA into whatever you want ( Like CEF, or PSLV ).

    No, it's NOT in your hand, but good way to go IF you don't think the world is gonna fall apart right now. I do both. ( Not IRA, just a plain cash account at Etrade )
     
  15. hminus

    hminus Monkey+

    Word is silver is going to outperform gold. since 2009 if has had a gone up 105 percent.. Don't get me wrong, gold is a good option too, but some folks believe the price of gold is being held back. Keep in mind, these investments are a hedge against the falling dollar. If the dollar should rebound, you gold-silver value is likely to go down..Many people are also buying bags of silver mercury dimes ect... they are not pure silver, but are thought to be a better investment... Lastly, if you purchase any of these metals, I would not advise keeping it in your home... it is too easy for folks to figure out that you have some and take it from you....
     
  16. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    the dollar will rebound short term while it continues its decline longterm. The world govs and central bankers haven't figured out how to effectively dump the dollar, yet. When they do, welcome to Rome!
     
  17. Falcon15

    Falcon15 Falco Peregrinus

    Did you watch the Bernake today? He just found out how to sump the FRN. QE ad infinitum...SLR's here we COME!
     
  18. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    SDR's. Can I exchange PM for SDR's? Will the World Bank of de Rothchilds let me?

    We need a new worthless paper to replace the old useless paper. The only paper that has a tangible value is toilet paper. I think our dollars will be on rolls in the future.
     
    BAT1 and Falcon15 like this.
  19. Falcon15

    Falcon15 Falco Peregrinus

    No, I meant SLR's...Special Loser Rights. I know the IMF is pandering SDR's (Special Drawing Rights) I was trying to be nasty/sarcastic with small success...
     
    BAT1 likes this.
  20. BAT1

    BAT1 Cowboys know no fear

    Silver is at 39.00 right now on it's way to 50.00. I'm going to get it, because the days of waiting until it goes down is long gone. Going to deposit it in Ground Incorporated bank.
     
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