Given this scenario, what would you do?

mrpaseo

ROTH IRA or Physical PM purchases?

Given the current market and you could sell at any time.

What would you do?

Ray

derryb

you can only put so much into any IRA unless it's a conversion from a regular (or 401K) to a ROTH. Given the IRA contribution limits why not do both? IRA, if self-managed through an online broker allows one to invest in just about anything, including metal ETFs and mining stocks. I personally do both.

mrpaseo

I agree, but I am questioning if the current state of Precious Metals (and the economy) is enough to change opinions of the normal ROTH IRA and 401k investors or do you stay strong with your investment portfolio and put other funds into PMs.

derryb

I put other funds into PMs because of my view of the long term benefit of owning PMs. Its Bernanke insurance for me. PM gains are taxed at a min of 28%, Roth gains are not taxed.

guitarwes

If you can get an employer to match your contributions, do the IRA up to the matched amount and take the leftovers and buy physical pm's.

mrpaseo

<< <i>If you can get an employer to match your contributions, do the IRA up to the matched amount and take the leftovers and buy physical pm's. >>



So you think that in the long term (25 years), you think being in PMs is a better option then mutual funds (knowing you could sell the PMs at any time in that time) and you can not sell the MFs).

mkman123

I think PMs are great in the fact that I have easy accessible money at any moment...........lets say you have a bad month were everything goes wrong.....car breaks down, large medical bill, and other things, you can sell your metals and get instant cash to pay for those problems. To me, its a savings account and I think a lot of other ethnic groups feel the same way.

mrpaseo

<< <i>To me, its a savings account and I think a lot of other ethnic groups feel the same way. >>




Huh?

bluelobster

One investment is liquid and grows tax free, another is illiquid and taxable.

I know which one I would choose, doesn't mean you can't buy some physical, but buying at these premiums is a bad bet, imo.

mkman123

mrpaseo, a lot of groups like asians put their money into precious metals and treat it like a savings account. Some don't trust banks, etc.

mrpaseo

<< <i>mrpaseo, a lot of groups like asians put their money into precious metals and treat it like a savings account. Some don't trust banks, etc. >>



I found it odd that race needed to be involved in your answer.

Not how I was brought up, but to each his own I guess.

Best,
Ray

mkman123

I'm Asian and that's how many of my family feel

C0INB0Y

<< <i>ROTH IRA or Physical PM purchases?

Given the current market and you could sell at any time.

What would you do?

Ray >>



CoinBoy Axiom: Unless it is physically in front of me, I don't own it.

This means that I really don't own (with 100% certainty ) any of my money in the bank, a SB box or an IRA.

guitarwes

<< <i>

<< <i>If you can get an employer to match your contributions, do the IRA up to the matched amount and take the leftovers and buy physical pm's. >>



So you think that in the long term (25 years), you think being in PMs is a better option then mutual funds (knowing you could sell the PMs at any time in that time) and you can not sell the MFs). >>



While I don't like to admit it, growth stock mutual funds have done well for the last umpteen dozens of years. If you get someone to match your contributions dollar for dollar up to a certain amount, you automatically get a 50% return on your investment from the get go plus whatever % in the stock potentially will increase over the long haul. Right now, ROTH IRA's ARE NOT taxed upon withdrawl (will the g'ment change that?, probably so in the future), but are slightly illiquid if you needed money from them before you are 50 1/2 years old. Not totally illquid of course, there is always early withdrawal, but the penalties for that are a bummer. That said, if someone were giving you free money to invest in something that has proven itself on average over time, would you invest in it?

The way I look at PM's are like a speculative savings account that they could generate some capital with, pay some bills with, make a profit on, etc. It's there at their disposal. PM's are worth whatever the current market for them is, unlike a face value on a piece of currency which is what most folks have in their savings account. A dollar bill will always spend as a dollar bill. A Silver Eagle may be worth $28 or $38 depending on when you need to sell it or buy it. Just be sure to make smart choices when buying as to whether they may be worth more when you need to sell for something else.

I'm gonna quit there, I'm starting to confuse myself, and that's not a good thing. I know what I mean. Know what I mean?

Mesquite

"I agree, but I am questioning if the current state of Precious Metals (and the economy) is enough to change opinions of the normal ROTH IRA and 401k investors or do you stay strong with your investment portfolio and put other funds into PMs."

It has not only to do with the current state of PMs and the economy, but also the current state of the government/banking/investment institutions - and your age. With the talk of politicians discussing folk’s pensions, 401Ks, IRAs, and governments (or Central Banks) (i.e., Cyprus) adding bail-in to their list of options in the event of a monetary catastrophe I think one is wise to have a portion of their savings out-side of the system. Clearly, Soc. Sec. is beyond our control. Clearly, pensions and many 401Ks are outside of our control. Voluntary IRAs are within our control. Not a bad idea to ignore the carrot the Roth dangles. With a Roth you remain in the system, you assume all the risk with your money. If you’re outside the system, no hands but yours sit between you and your asset … So, you feeling lucky? And yes, this time I believe it is different.

In the current political and monetary environment, I vote for PMs outside the system over a Roth. You only pay the 28% on the amount you earn above cost.

jmski52

ROTH IRA or Physical PM purchases?

Given the current market and you could sell at any time.

What would you do?


You can always sell a Roth or PMs at any time. What's the scenario?

I don't believe that anyone really knows what level of risk is in ANY market now. If that is the scenario, there is no good way to hedge or to plan.

This isn't your father's investing world anymore.

There are lots of ways to shuffle assets around and to hedge against risks, but very few of the real risk factors are known, and even the ones that are known - are uncertain. Hence, none of them are superior to the others. Take your best shot.

Mesquite

How does one hedge against the bail-in risk? The risk that your portfolio might be replaced by Treasuries?

KUCH

Some good answers here. My thoughts:

1) Ira Roth - I would only invest in Blue Chips and hold the Certificate. Direct Regestration. Stay out of the system, by ways of a third party.
2) no Roth, divide into PM's and cash (dollars). As things turn south, you'll be able to buy some great assets.

Remember. First it's Europe, then Japan, then USA in the domino effect.

Just my thoughts.

LochNESS

<< <i>If you can get an employer to match your contributions, do the IRA up to the matched amount and take the leftovers and buy physical pm's. >>


Times like these I wish I wasn't self-employed