Precious Metals Retirement Strategy

WarHoundR69

A few weeks ago I retired and began a strategy I mapped out about 20 years ago. What I am doing is selling one one-tenth ounce platinum eagle per week (On Ebay) to supplement my social security check. My thought is that the APE's will provide a steady source of spending power enabling me to maintain a comfortable life style. Then any added luxuries can be funded by selling my one ounce PM bullion coins. So finished my stacking career and gradually cashing in on a lifetime of profits (Never sold before this time).

Any thoughts or comments on this.

Spooly

Congrats! Enjoy retirement!

jmski52

Your plan sounds very similar to mine. Congrats!

derryb

For now it looks like platinum is going to only gain in value. If you don't need the funds from the platinum, you might consider letting them grow further in value before selling. Maybe selling one every other month for now. I would consider them a savings account and for now and only dip into them as I would savings. This type savings account is going to grow in value for the foreseeable future, so deplete it sparingly.

AUandAG

I did what you are doing but at one fell swoop over a one year period instead of over 20 years.

I found that you will do better by selling on the BST than by selling on EBay. IF you can move it
on the BST here, or across the street, then do it. Give a discount and you'll still come out way
ahead. Do Paypal and you'll still come out way ahead. Remember that Ebay takes about 15%
plus shipping out of your bottom line (plus the Paypal).

Welcome to retirement!!

bob

WarHoundR69

Yes I expect platinum to go up in value, that is why only one coin per week not all at once. So the price I get will only increase each week over the next decade hopefully exceeding the inflation rate. I have an Ebay store where I have done very well. My user ID there is Warhoundr60. After only a few weeks I am seeing repeat bidders which has been the pattern I have seen with other items I sell. This only drives prices higher.

You have to cash out some time.

gecko109

Excellent strategy as long as you are not needlessly stockpiling FRNs in the process. In other words, only cash out as needed, and not solely based on a set timeframe. If no extra supplemental income is needed over the next few weeks, sell nothing. If you want to go on a fun vacation, sell a few ounces.

WarHoundR69

Exactly what I plan to do - suspend sales whenever I do not need the cash. Or cash in a few ounces when I plan a trip or cruise somewhere.

Justacommeman

It sounds like you need zero advise from us as you were smart enough to get this far on your own instincts. Well done. MJ

coirn

May you outlive eBay.

I believe you will.

Konahead

i am about 10 years behind you. Enjoy!

guitarwes

<< <i> i am about 10 years behind you. Enjoy! >>




I'm about 25-30 years behind you. Enjoy the fruits of your planning!

So I'm guessing you have about 500 of these 1/10th oz Plats stored up?

cjmezz

I'd say your strategy is spot on...very well planned out! I have about 35 years left to worry about retirement, and only hope i'm as well prepared as you are.
On a side note, I looked at your ebay items......is there a decent market for the Indian Gum cards? Never seen or heard of them, but they seem kinda cool!

PerryHall

<< <i>A few weeks ago I retired and began a strategy I mapped out about 20 years ago. What I am doing is selling one one-tenth ounce platinum eagle per week (On Ebay) to supplement my social security check. >>



Is eBay really the best venue for selling bullion with the eBay fees, Paypal fees, and shipping expenses?

jmski52

Is eBay really the best venue for selling bullion with the eBay fees, Paypal fees, and shipping expenses?

No, but there is a cost for the convenience. BST and Coin Shows are a much better option if you are organized, have the time and plan ahead. BST items don't always sell when you want them to sell, and Coin Shows aren't a weekly affair, unfortunately.

My plan is to liquidate in bigger chunks if necessary and to manage the cash flow that way.

Baley

I like this, and can picture myself selling coins during retirement for supplemental cash.

I'm assuming you also have other assets and income streams, too? besides social security checks, perhaps pension checks, retirement stock/bond/cash accounts, real estate equity?

I'd be curious to know about what percentage the metals are of your total net worth, and i'd be surprised if it was over half

cone10

Stacking for 20 years you've got some solid profits, congratulations! Enjoy your retirement... you've earned it

derryb

<< <i>I like this, and can picture myself selling coins during retirement for supplemental cash.

I'm assuming you also have other assets and income streams, too? social security checks, perhaps pension checks, retirement stock/bond/cash accounts, real estate equity?

I'd be curious to know about what percentage the metals are of your total net worth, and i'd be surprised if it was over half >>


Not a bad idea to have most of savings in metals rather than dollars. I personally keep 95% of savings in physical metal related investments and convert to cash only when cash is needed. Retirement accounts are in paper metal mining stocks and derivatives such as AGQ. OPs plan is a great way to ensure a maximized income stream while in retirement. If he can pursue cash sales he will do even better. Had he put this money in the bank he would be in negative territory due to almost zero percent returns and a devalued dollar. His "metal plan" at a minimum has preserved his wealth.

It is also a good idea to take advantage of peaks with accelerated sales only to restock on the dips. This allows you to increase your holdings at a time when you are also periodically reducing them.

WarHoundR69

Ebay is great advertising and the cost is well worth it. Into week 3 and I have received offers to buy multiples off ebay, which I have turned down. Time is more valuable than money so it is not worth trying to wring out those last few dollars. My profit is already locked in.

I have been a collector/accumulator all my life and when I feel like it I plan to gradually add items from my collections to my Ebay store. I sell more Non-Sports cards off Ebay than through my store and over 80% of those contacts came through Ebay. Plus I can conduct business any time I want. The convenience is worth the cost.

ilikebuffaloes

I like your strategy, and maybe I'll try to accumulate more bullion for that reason.

One other suggestion would be to check some of your local coin dealers for their buy prices. I've found them to offer anywhere from 95-97% of spot for non-Eagles and more for Eagles.

I found it was safer and easier to sell that way. eBay is a great place to sell trendy stuff, but right now PMs are kind of trendy with all of the stuff going on in DC!

Enjoy retirement!

renman95

Dis is nu to me comrade warhoundr69.

I Thot guvment tak care of comrades in old age, no?

We give coins to guvment when we finish work and guvment givs to poor, no?

comrade Renski confuzed.

WarHoundR69

My father grew up in the Ukraine during the Stalin era and imigrated to the USA in 1948. He told me many many stories about what he went through under the communists and nazis. The trick was to hide coins from the local commisar who if he found them would just take them as "Proletariat Property".

Main reason I became a "GOLD BUG" was the stories my parents told me.

My Dad was a black market cigarette profiteer in Germany during 1946 to 47. I heard many stories about that as well.

Justacommeman

There are a lot of us with folks from the old country on this forum. I don't think it's much of a coincidence either. (Poland for my people) Lot's of similar stories in my family as well Warhound. Gold was always a staple in the stories told that bailed them out of a tight spot.

Congrat's on your retirement. MJ

mrearlygold

<< <i>A few weeks ago I retired and began a strategy I mapped out about 20 years ago. What I am doing is selling one one-tenth ounce platinum eagle per week (On Ebay) to supplement my social security check. My thought is that the APE's will provide a steady source of spending power enabling me to maintain a comfortable life style. Then any added luxuries can be funded by selling my one ounce PM bullion coins. So finished my stacking career and gradually cashing in on a lifetime of profits (Never sold before this time).

Any thoughts or comments on this. >>



I think it's excellent and wish you all the best in your retirement. I wish more people would develop a real plan when pursuing precious metals and rare coins to be used as part of a retirement plan. Unfortunately that's not the reality in most cases but obviously you've stuck to your plan and I bet you're glad you did Congratulations and Stolat ( Sto lat" (One Hundred Years) is a traditional Polish song that is sung to express good wishes, good health and long life to a person)

WarHoundR69

And that is where Stolichnaya vodka came from, originally aged for 100 years - only for royalty. I speek Russian, Ukrainian and understand Polish. So Mnohaya Lyta to everyone.

cladking

Brilliant plan.

But in about six years you'll want to convert all your metal to cash. You'll know it's time
when things look too good to be true.

nutmeg

My plan was/is similar but instead of platinum it's silver and gold bullion. Retirement came in October 2010 and the buying slowed down.
I'm still working on completion of two sets: namely Barber halves and Barber dimes. Even though what I read says set building is on the decline I only need 4 more coins for each set. So why not finish them out?
During my last working years I bought on a regular basis.
That being said I now present my problem; I am reluctant to sell anything. I know I shouldn't hold onto everything and my heirs probably would never get the best value for this stuff.

jmski52

I'd be curious to know about what percentage the metals are of your total net worth, and i'd be surprised if it was over half

Surprise! Not counting home equity, it's well over 90%. It didn't used to be this way. If things change, I could see going back into stocks, bonds, land or other investments. But I don't see the government getting smaller or less intrusive.

Until that starts happening, I think it is 100% absolutely, certifiably crazy to make yourself a sitting duck by trusting or being dependent on paper assets backed by government fiat, government regulations that only regulate the little guy, and promises of the filthy, lying, stinking, corrupt and inept politicians in Washington DC (and that's being charitable).

DrBuster

I love the stack then sell a piece of the stack plan. The pirate treasure plan, what's not to like!

At almost 40 I'm a small time youngster in the metals game here and have a long way to go. I've been watching for years, buying when I can (even when out of work), always holding. My plan is to keep stacking silver and a little gold and have some cash around, figure I have at least 30 years+ of doing that left if things go well before I think about tapping it, unless I kick it early.

Got out of stocks after the dot com bubble, but do watch things here and there. IRA - no roth yet, 401k - why (don't get one from my current employer), pension from the state - turned into some metal when I got layed off 4 years ago and they cashed me out.

Commodities: metals, home value, no note vehicles, artwork I do myself and sell, artwork I didn't do but own, cash, collectables I trade for dinners and bar tabs currently for years, etc. etc. Call those my tangible, non-paper investment plan.

Spooly

I personally keep 95% of savings in physical metal related investments and convert to cash only when cash is needed. derryb


Surprise! Not counting home equity, it's well over 90%. jmski52


WOW! That's alot! I thought 25% in gold/silver and metal stocks was pushing it! The more land assets the better in my humble opinion.

dpoole

I agree with your humble opinion, Spooly.

I have acquired PMs in a regular, desultory manner over time, but the wifey and I just bought more farm land from my brother in law.

ksammut

Great plan. I will be doing something similar in another 10 years.

Justacommeman

This plan always works best when "things" are making new highs. Not so much when they are not. MJ

cohodk

<< <i>This plan always works best when "things" are making new highs. Not so much when they are not. MJ >>




This quote should be everyone's sigline.

guitarwes

<< <i>

<< <i>This plan always works best when "things" are making new highs. Not so much when they are not. MJ >>




This quote should be everyone's sigline. >>




I was just thinking the same thing. I'm glad it worked out for someone though. I'm sure there were some people who did this same thing who were gonna retire in the late 70's early 80's and thought they were set up fine with the runup and then were caught breaking even if having to sell a little at the time for the next 10 years.

pf70collector

I have been stacking seriously since 05. Really miss those buying opportunities back then. Taken a loan on my 401K to also convert to metals plus I get 4.5% guaranteed interest paid to me on the loan. I think the Feds will make it illegal soon to take loans out on your 401K. If they do, I see them getting their hands on private 401k s to convert to treasuries.

mariner67

I am no mathematician or financial wiz but isn't paying 4.5% interest to yourself a non moneymaker?
Is it a wash?
Also, it is a big leap of faith to do what you did.
Remember how far silver fell in the early 80s and it still has yet to achieve those levels again. Even decades later.
If it dives you could go underwater or worse fast.
If you are young...hopefully you could recover from a big dip.
If you are older or nearing retirement you should be more focused on capital preservation rather than capital appreciation.
Just my humble thoughts.
Best of luck...I hope you are correct in your chosen course.
Best!

guitarwes

<< <i>I am no mathematician or financial wiz but isn't paying 4.5% interest to yourself a non moneymaker?
Is it a wash?
Also, it is a big leap of faith to do what you did.
Remember how far silver fell in the early 80s and it still has yet to achieve those levels again. Even decades later.
If it dies you could go underwater or worse fast.
If you are young...hopefully you could recover from a big dip.
If you are older or nearing retirement you should be more focused on capital preservation rather than capital appreciation.
Just my humble thoughts.
Best of luck...I hope you are correct in your chosen course.
Best! >>

Spooly

I would watch a long term chart of pm's...... you will want to sell out if a deathcross takes place on the charts. (or right before) History shows that it can be a long ride down... and on a fixed income it can really hurt.

jmmiller777

Wouldn't it be better to just cash in at spot price to avoid the ebay fees? Just asking...

PerryHall

<< <i>Wouldn't it be better to just cash in at spot price to avoid the ebay fees? Just asking... >>



That was the point I was making earlier---with all the eBay and Paypal fees this is not the best venue for selling bullion. The BST is no more work than eBay and there are no fees so you can sell them cheaper and still make out better. In most cases even your local coin shop is a better choice than eBay.

OzzyAndy

What I'd suggest is to communicate what you're doing to anyone you sell to, you might find someone who is in the opposite situation to you and wants to buy one a week or month or something, could avoid some fees etc that way. Of course make sure you keep security in mind, don't give out your address to anyone who knows you have that much or keep in a bank box or something.

renman95

<< <i>I have been stacking seriously since 05. Really miss those buying opportunities back then. Taken a loan on my 401K to also convert to metals plus I get 4.5% guaranteed interest paid to me on the loan. I think the Feds will make it illegal soon to take loans out on your 401K. If they do, I see them getting their hands on private 401k s to convert to treasuries. >>



Pf70, I've done this too. My repayment is complete in 2013 at which time I'll do it again but fear that this "bene" will be shut down. I believe there's a bill regarding this in the House now.

WarHoundR69

I am only selling one coin per week which (With my power seller discount) has cost me $12.00 in fees per coin so far. Now, to me, time is more valuable than money - I made much more than that per hour when I was employed. Because over 95% of what I do is Non-Sport cards the extra time needed to list/sell one item is minimal. You list something on a B/S/T you have to deal with multiple emails which courtesy demands you answer, then the bargaining begins. It just requires too much time. I have listed on B/S/T boards elsewhere so I know the drill.

On Ebay - list, forget about it for a week, get paid, ship (Which usually includes packages of cards when I go to the PO). I know that I am not getting the last possible dollar but I do not care. By the way the closest LCS to my house is 40 miles away.

yellowkid

I wouldn't like to leave the paper trail that selling on eBay would, and certainly not giving them and PP a cut. What would be wrong with finding a small group of honest B&M dealers and selling to them?

BigE

Very happy for you r69. I am doing the same thing myself. Its great that these rebounded from the 80.00 they were selling for a couple years ago!---------------BigE