Coins and IRA's.....
TommyType
Posts: 4,586 ✭✭✭✭✭
This might be a bit off topic and boring, but I'll give it a whirl anyway:
Since turning 40, (actually 41 now), I figured it was time to act like a big boy, and get my finances in order. In the process of learning about IRA's, mutual funds, and general investing, I got to thinking about the proposal I've heard in the past about allowing rare coin "investments" in IRA's.
How the heck would that work? It seems to me that the government rules go to great lengths to make sure you can't mix IRA funds with other funds, and can't get your paws on the IRA funds before retirement without paying heavy penalties.
If you WERE able to place coins in an IRA, would you be required to lock them out of reach? Could you only sell under the watchful eye of some entity to make sure the funds and profits made it back into the IRA? It seems it would be way too easy to siphon off profits, or "over invest" without that oversight. And if you did have that oversight, the associated management fees would probably eat into your profit potential anyway.
Has anyone been involved deeply enough in the topic to explain the proposed workings?
Since turning 40, (actually 41 now), I figured it was time to act like a big boy, and get my finances in order. In the process of learning about IRA's, mutual funds, and general investing, I got to thinking about the proposal I've heard in the past about allowing rare coin "investments" in IRA's.
How the heck would that work? It seems to me that the government rules go to great lengths to make sure you can't mix IRA funds with other funds, and can't get your paws on the IRA funds before retirement without paying heavy penalties.
If you WERE able to place coins in an IRA, would you be required to lock them out of reach? Could you only sell under the watchful eye of some entity to make sure the funds and profits made it back into the IRA? It seems it would be way too easy to siphon off profits, or "over invest" without that oversight. And if you did have that oversight, the associated management fees would probably eat into your profit potential anyway.
Has anyone been involved deeply enough in the topic to explain the proposed workings?
Easily distracted Type Collector
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Comments
Tom
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
And as I suspected, it just doesn't seem like a very good idea to me. Paperwork, tracking, (or storage fees), making a questionable investment to begin with even more expensive in time and money.
Plus, it would be making a perfectly good hobby into WORK!
Tom
Good question.
E PLVRIBVS VNVM