Take a tax hit now to invest in metals?

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  • Mon, Jan 18, 2021 - 12:55pm

    #1
    Rebecca Wieging

    Rebecca Wieging

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    Take a tax hit now to invest in metals?

Would it ever make sense to take the huge tax hit to pull money out of an IRA in order to purchase physical gold and silver (that you hold)? With the obvious fiat currency reset in the works, I wonder if that tax hit will seem like a minor price to pay in the long run?

  • Mon, Jan 18, 2021 - 02:18pm

    #2
    RandomMike

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    Take a tax hit now to invest in metals?

Don’t get carried away; nobody knows.

  • Mon, Jan 18, 2021 - 02:31pm

    #3
    wotthecurtains

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    Reply To: Take a tax hit now to invest in metals?

I asked myself this very question years ago because people have been making this argument for at least 12 years now that Ive been paying attention.

 

Unless you buy at a very opportune time it doesn’t seem like it would be worth the upfront cost.  I would find some way to get to my “10% insurance” allocation without handing more of my money to the govt.

 

In some scenario where gold goes to $150,000 an ounce “they” will be looking for 90% windfall profit taxes if not jail for (citizen) gold holders.  Better to have some gold but not too much when that time comes.

  • Mon, Jan 18, 2021 - 03:07pm

    #4
    LBL

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    Reply To: Take a tax hit now to invest in metals?

Maybe in 2016 when you could buy Silver for $14.52 an ounce delivered, and Gold for comparably low prices ($1100 ish).

Part of the Process is learning.

Maybe just do $1000 – and keep good notes about the financial details.

 

ALSO, I suggest keeping track of the production costs for Ag and Au (silver & gold).

It can be hard to find that information for Silver.

Then you know when either metal is Selling Below the Cost of Production.

 

 

  • Mon, Jan 18, 2021 - 03:13pm

    #5
    dreinmund

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    Take a tax hit now to invest in metals?

Hard Asset Alliance allows investing in physical gold and silver through IRA accounts.
You could transfer some money from an existing IRA to a new IRA at HHA, and then buy without incurring the early withdrawal fee.

  • Mon, Jan 18, 2021 - 10:56pm

    #6
    Darwin Evolved

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    Take a tax hit now to invest in metals?

That is a very good question.

At my workplace we have a retirement program 403(b) with matching donations, but the choices and flexibility of funds is limited. I will be 59 1/2 in May and can pull money from that fund without a tax penalty and since it is structured as a Roth IRA there are no taxes to be paid on it.

I am investigating if it might be advantageous to remain in the program  but pull the vested funds out and flip them to a more flexible investment. My personal view is that the market is in a bubble and there is no option to move to cash or hard assets. There is a bond fund, but there are problems with investing in bonds right now as well.

  • Tue, Jan 19, 2021 - 12:26pm   (Reply to #6)

    #7
    dreinmund

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    Re: Darwin Evolved

Just roll the existing 401k / Roth into a fully self-directed Roth or regular IRA, and make the investment decisions that make sense for you.

E.g. you can buy bullion through Van Eck Merck Gold Trust (OUNZ)

  • Tue, Jan 19, 2021 - 03:02pm   (Reply to #3)

    #8
    DennisC

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    Windfall Profits Tax

I like to think of it as an I “planned to prepare” tax.  I’m thinking that crypto’s are heading down the same path, if they’re not “appropriated” sooner.  The house always makes sure the house always wins.  Who do I contact to purchase a duchy to host my tenants?

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