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Certified Coins In Retirement Accounts!

DatentypeDatentype Posts: 1,677 ✭✭✭
in PCGS Set Registry Forum
PCGS just sent me this along with a letter to send to customers, encouraging them to write their Senators.

"Congress is considering legislation that will allow certified coins to be placed in retirement accounts like your IRA. This bill (HR 1820 in the House and S 935 in the Senate) is scheduled for a vote in July 2003"

This would seem like great news and i expect prices on coins to rise or would they?

Comments

  • itsnotjustmeitsnotjustme Posts: 8,779 ✭✭✭
    So when you put a coin in, would you be able to remove it before retirment? What about selling it and putting the proceeds back in... or buying another coin to replace it.

    Would they need to be stored with a financial institution that holds your IRA?

    Give Blood (Red Bags) & Platelets (Yellow Bags)!
  • RobgettyRobgetty Posts: 1,112
    Certified coins in a retirement account? So I can load up on Accugrade junk in the account?
    Let's at least hope that some other reasonable standard could be used!
    Besides, how would you sell and buy more coins? You couldn't hold on to the coins
    yourself; would there have to be sight unseen sales with the bank, etc. sending the coins
    directly to the buyer after the funds are deposited in your IRA?

    Let's keep this as a fun hobby that has a chance for financial gains; let's not have the Home
    Shopping Network adding their retirement special of NTC PR69DCAM's !! image
    Robert Getty - Lifetime project to complete the finest collection of 1872 dated coins.
  • DatentypeDatentype Posts: 1,677 ✭✭✭
    I'm gonna start a mutual fund of pcgs certified coins. Who wants in?
  • michaelmichael Posts: 9,524 ✭✭
    crazzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzy


    sincerely michael

    coins are only a hobby for fun


  • BigernBigern Posts: 161
    Coin market is to volatile to do something like this. Its crazy!!!!!!!!!!!!!
  • HigashiyamaHigashiyama Posts: 2,193 ✭✭✭✭✭
    If PCGS is promoting this, they are acting in self interest and extremely irresponsibly.

    This would be bad for savers, and bad for collectors.

    Bad for collectors because the influx of dumb money would inflate prices.

    Bad for savers, because they would get fleeced.


    Higashiyama
  • DAMDAM Posts: 2,410 ✭✭
    You think it's hard to find nice coins to collect now? I suspect it could be generations before some of these coins are turned loose.

    This does nothing to serve the collector. Trash the idea!!!!!!!!!!!!!!! image
    Dan
  • redhottredhott Posts: 175
    Just say NO!
    redhott
  • MistercoinmanMistercoinman Posts: 1,820 ✭✭✭
    I AGREE LET'S NOT START ADDING NON COLLECTORS TO THE HOBBY. THIS WOULD ONLY BENEFIT THE DEALERS AND PUT A FASLE MARKET IN THE HOBBY FIELD. LOOK AT WHAT HAPPENED TO THE SPORTSCARD INDUSTRY WHEN THEY STARTED SPECULATING AND REMOVING THE KIDS AND HOBBIST FROM THE BUSINESS. THERE ARE NOW MORE DEALERS THEN COLLECTORS AND CARDS ARE NOW WORTHLESS. WHO WOULD LIKE SOME NEW 1990 DONRUSS BASEBALL CARDS!!!!!
    JR Newsletter
  • ConstellatioCollectorConstellatioCollector Posts: 1,909
    I haven't heard all sides on this but my take is that the collector would really have to maintain fantastic records and start paying heaps of tax on all sales and buys. At first glance, it doesn't sound like a very good idea. I don't want big brothers hands in my collection!!!
    Constellatio Collector sevenoften@hotmail.com
    ---------------------------------
    "No Good Deed Goes Unpunished!"
    "If it don't make $"
    "It don't make cents""
  • marcalan84marcalan84 Posts: 310
    I feel that I am qualified to give a reasonable answer on this. As both a collector/investor of coins and a Financial Consultant who deals daily with individuals IRA's and retirement plans.....I have to say....it probably isn't a good idea. While diversification is prudent for all investors....and while owning coins can add to this diversification.....most investors aren't knowledgeable enough to invest in the coin market wisely. Unlike a Financial Consultant who has certain fiduciary responsibilities to their clients....and must pass many exams (series 7, 63, 65, and insurance exams)..not to mention any education they may have (I have an MBA and a BS in Mechanical Engineering).....any dealer or pseudo-dealer without any qulifications or responsibility to the investor....would be able to push investors to buy junk or make investments that may not be appropriate. Sure......a client could also lose money in stocks or bonds....but they have some recourse with the firm....if the investments were inappropriate given their personal investment objectives. This isn't so with coin dealers.....where it is basically...."Buyer beware"!! I would have to say NO...even though the basic concept on a personal level is somewhat appealing.
    Marc
  • jomjom Posts: 3,445 ✭✭✭✭✭
    I'm not entirely sure whether ANY long-term captial asset is good in a regular IRA. Answering the following question might help:

    If you could buy a stock today at $5 per share and then sold it 20 years from now at, say, $30 per share when you are older than 60 would you rather buy that stock inside your IRA or the normal way (outside)?

    If you buy it within the IRA and when you are 60 the taxes you'll pay would be on "earned income". If you bought it outside the IRA you would only pay long-term capital gain taxes. Cap gains taxes are usually far less and in most cases it is a FLAT tax. I'd rather buy it outside the IRA.

    Of course, things change with the tax law over time buy you can make an reasonable guess....

    Also, if we are talking about a ROTH IRA that is totally different....

    jom
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