Gold IRA

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  • Tue, Jun 16, 2015 - 12:39am

    #1
    ltlredwagon

    ltlredwagon

    Status Bronze Member (Offline)

    Joined: Nov 23 2008

    Posts: 35

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    Gold IRA

Charles Hugh Smith in his recent article talks about holding gold or real estate in an IRA or 401k.   As Wikipedia notes: "Legally speaking, precious metals in an IRA are in the custody of the trustee or custodian, not the IRA owner."   Seems to me this could be a problem.   Banks can be trustees, and the IRS also lists 60 or so approved non-bank trustees here:  http://www.irs.gov/pub/irs-tege/nonbank_trustee_list.pdf

I know there are debates about whether gold confiscation could occur.  That can be argued elsewhere, but I would think gold in an IRA would instantly convert to a small amount of cash should the government decide they want it.  But I don't really know much about holding gold in an IRA.  Is real estate a better option?  Something I'm not understanding?  Thanks.

  • Sun, Jun 21, 2015 - 05:18pm

    #2

    Boomer41

    Status Bronze Member (Offline)

    Joined: Nov 30 2008

    Posts: 109

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    Not ideal but better than most options

If you have a significant part of your savings in a 401(k) plan, a Gold IRA is an option to convert from mediocre quality 'investment' vehicles to something more tangible. For most people, pulling out savings from their 401(k)  to buy physical gold is a very expensive option because of the taxes involved. Rolling over the 401(k) into a self-managed P.M. IRA at least gets you into precious metals even if the tangibility is one step removed from actually holding it yourself.

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