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How to Invest Gold In Your Pension Plan - Part 3
Today’s AM fix was USD 1,276.00, EUR 951.25 and GBP 798.75 per ounce.
Yesterday’s AM fix was USD 1,281.00, EUR 956.90 and GBP 807.03 per ounce.
Gold fell $14.60 or 1.14% yesterday, closing at $1,268.90/oz. Silver slid $0.61 or 2.86% closing at $20.75. Platinum rose $1.16 or 0.1% to $1,429.40/oz, while palladium fell $14.01 or 1.9% to $737.43/oz.
Gold rose slightly after dipping to a four week low in the last trading session. However, the gold price remains subject to downward pressure as investors are still wondering when the U.S. Fed will begin tapering its stimulus program. December is being muted as a possible tapering start date but as we have seen in recent months, the speculation has been incorrect and QE continued as before.
In other news, Janet Yellen is appearing before the U.S. Senate banking committee today for her nomination hearing to become the head of the U.S. Federal Reserve and to receive her official licence to print.
Gold in USD, 5 Year - (Bloomberg)
In 1997, the US Tax Payer Relief Act made it possible for precious metals to be added to Individual Retirement Account (IRA) accounts. This includes gold, silver and platinum. An IRA is a form of "individual retirement plan", provided by many financial institutions, that provides tax advantages for retirement savings in the United States.
A Self-Directed IRA or 401(k) is governed by the same set of Internal Revenue Service (IRS) rules and regulations as a conventional retirement IRA, with the main exception being that conventional IRAs do not allow for diversification into precious metals because of the special circumstances related to ownership: precious metals require professional storage/vaulting, insurance and specialized custodial responsibilities.
The decision to apportion retirement savings into gold and other precious metals is being taken by an increasing number of US citizens who understand that the value of the US dollar is being silently eroded by inflation. Indeed, as we get older, the real rate of inflation is much higher as the key financial outgoings – health insurance, home heating and groceries - are much, much higher than the official rate of inflation.
Self-directed IRAs permit a wide range of gold investments to be included. GoldCore cautions against investing in any paper gold product as it is very different to and more high risk than investing in physical gold. Paper gold includes gold futures, gold futures options, some gold ETFs, certain forms of unallocated gold ownership, pool accounts, contracts for difference (CFDs), spread betting contracts, gold stocks and/or gold options.
Self-directed retirement schemes with a gold and/or precious metals allocation are a powerful retirement planning tool and considering the continuing financial malaise affecting the U.S., they will continue to offer a genuine long-term savings option.
Click here for our guide to Putting Gold In Your Pension Plan in the USA.
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i transfered all the money out to buy a home, sold two homes in the meantime and have a loss on one to offset the 10percent penalty and addtl income tax on trans. now the money is free of gub reg. what a relief as we all know what will eventually happen to this money -cyressed or corzined. what you do with it at this point in time is your buss. got gold?
I rolled over a regular IRA into a physical-possession precious metals IRA in 2008 on the huge dip. This summer 2013, on the next huge dip, I GOT MY METAL OUT, since I no longer trust any of the warehouses used by the IRA custodians to hold my metal, nor the gubbermint. Tax on the distribution will be very low, thanks to price suppression scheme, er, "volitility". Same bars in my hands for a fraction of the tax I would have paid two years ago...or would pay two years from now.
Plus, these days, you know the gubbermint has to be scheming ways to rob these tax-deferred accounts, replacing these "risky" assets with "safe" gubbermint bonds (backed by the "full faith & credit" of the bankrupt gubbermint) to protect uth from ourthelveth, for our own thafety. For the children...
In response to my query, the trust company rep revealed that I was one of a large number of people withdrawing their metal that week, so many that they had to re-assign employees to process them all. Coincidentally, the COMEX warehouses were hemorrhaging metal during the same period ("act surprised").
Anyway, I'm not sure that now is the right time to be putting anything away for the future (if any) under a gubbermint tax-deferral gimmick. Unfortunately, I can't withdraw the CEF & PSLV shares from my 401(k) too without terminating employment (with my own company).
I must concede, however, that Delaware Depository did promptly deliver my metal by UPS, but with a **cking 470 FeRN COD charge, the @$$#01e$!
After the lazy@$$ UPS driver struggled to move each of the small boxes from the back to the steps of his truck, then stood there looking at me still waiting and twiddling, I had to instruct him to please deliver my (~1,000-ounce) "anvils" the rest of the way to my compound (with his heavy-duty dolly).
Tax on the distribution will be very low, thanks to price suppression scheme, er, "volitility". Same bars in my hands for a fraction of the tax I would have paid two years ago...or would pay two years from now.
There are two factors that determine the tax bill but you only mentioned one, the value of the withdrawn silver. The other variable is your marginal tax bracket after accounting for the increased taxable income. The more you earn in your job and the more "value" you withdraw (added together), the higher your tax bracket with maybe AMT as cherry on top.
Nobody can know what tax you'd be paying two years from now. Way too many unknowns, only one of which is the POS. You could be unemployed, tax rates could change, IRA withdrawal rules could change, etc. Hell, two years from now the Feds could seize all private IRAs and use them to prop up Social Security.
Hope this helps explain.
It's a big expense to create and maintain a physical PM IRA, with those UPS shipping costs being only a small part of it. I have "silver-based assets" in an ordinary brokerage IRA just because it's so much more convenient, and there are no account fees. Seizure risk ought to be viewed as marginal and relative to other risks.
Sure, Mexico, or others, could seize the mines of First Majestic, Endeavor, or the other miners in SIL, or Uncle Sam could seize SIVR in toto. But if it comes to that, I figure that'd be the least of my problems. Stockpiling silver and weapons won't do you much good if there are hungry mobs who would kill for food.
Key question to ask yourself:
was that harder, or easier than just getting a boat (which is prone to sinking when loaded with precious metals over conveniently deep waters)?
Excellent, logical guidance from Trampy. Everything depends on your individual employment & tax situation, though I wouldn't bet on tax rates going down. My point is that, all things being equal, tax on 20 FeRN silver is 40% of the tax on 50 FeRN silver, for the same ounces. I made my choices based on my own outlook and assessment of counterparty and gubbermint risk.
However, regarding "Stockpiling silver and weapons won't do you much good if there are hungry mobs who would kill for food," I must disagree. My food, steel & lead outweigh my silver by far. UPS driver has also delivered many 1,000-round cases of ammo. I have stacks of 30 & 40 round magazines and even 75 & 100 round drum mags for each of my rifles and family to man them. Any mob charging my compound to murder my family will get mowed down like wheat. It would be like the Japs banzai-charging into withering machine gun fire in WWII, with carcasses piling on top of each other. More likely, their ringleaders would drop at 250 yards and the rest would instintively rabbit. I also have Plan B (woods n' water), Plan C (S. America) and Plan D (sailboat). I intend to be the master of my own destiny and not live at the mercy of the zombies or gubbermint.
just make sure none of them get the smart idea you have something worth really fighting for (to capture & consume).
If you have crops, THOSE can be burned & if your compound has flammable parts they too can be burned. If they thought enough gold & silver were in there (which usually can survive fire; melted pools is a pain but it's survived in a manner of speaking) then fire it is.
Just make sure none of them get an idea about this. On that line of thinking any fuel stored (stabilized of course) make sure is not easily visible to approaching intruders (think flaming projectiles for the purpose of ignition).
Does one form of craziness spread from another? Do you suddenly get the urge to buy a lot of silver when you have a lot of ammo and vice versa? When does it end?
What I am getting at is that the only plan that will not get you and your family killed or at least arrested is plan-D.
By all accounts you probably need a holiday on that yacht
This is a global readership. Depending on your particular nation / region a good 1-way journey for the family may be better than arming up.
Depends. If you can look poor, keep a lot out of sight yet still have a lot of stored food, ammo, guns, gold, silver, then by all means.
If you CAN'T look poor & desolate then you ought NOT to be holed up like that.
OR, be armed better than a war-lord.
It is hard to find reliable information in these self-directed IRAs. Any ZHers have any first-hand knowledge to share? Pros, cons, Good idea, bad idea, stay the fuck away....
Yeah. it's a bunch of bullshit. The IRS has lots to say about those, like, "their just fine".
Until their not.
The reliable info you seek on QRP's can be found on the internet.
It's called a QRP.
US Dollar hass fallen out of bed today - Has Janet Yellen testomony been leaked already?
US Dollar And Gold This Week - Taper Talk And Who's Gonna Make The Walk
We have quite an interesting print in US Dollar today - with all Taper assured talk from both side of the FED's mouth, US Dollar has ended with a big hesitation question mark. We do not know what to take here with all ongoing market manipulation, but would like to point it out and will be watching this week action in USD very closely.http://sufiy.blogspot.co.uk/2013/11/us-dollar-and-gold-this-week-taper-t...