Starting a new job - 401K vs. physical PM

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dschroeder01's picture
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Joined: Nov 16 2010
Posts: 22
Starting a new job - 401K vs. physical PM

Hello all.  First thanks to all who contribute to this site.  I browse when I can and find the info to be quite helpful and insightful.

I'm starting a new job soon and am wondering about the best way to take advantage of my benefits.  I'm soliciting opinions on the best way to invest in precious metals.  I've posted this question in a different forum, but was hoping to take advantage of the great info available here as well.

A large portion of my retirement benefit comes in the form of a pension plan.  I'm not sure yet on the details of how much (if any) input or control I can have over those funds, but regardless, it's a strict employer sponsored benefit so I'll take it an hope for the best. 

My employer also offers a 401K program that I can also contribute with the standard pretax rules.  They match up to 3% based on profitability (health care). 

My question is in regards to the 401K program.  There aren't any good options for buying and taking possesion of the physical PMs in retirement accounts with the Sprott closed end funds or something like CEF being the best options I can find (although I haven't fully explored a custodian for PMs in a 401K -seems expensive).  I'd like to invest a good portion of my savings into precious metals and I'm wondering if I should skip the 401K contribution and put that money into buying the physical metal vs the Sprott funds/CEF?   I'd be losing out on the potential "free" money from my employer matching, but I know that back in 2008-09 when the economy tanked, the company wasn't matching anyway and I don't forsee a lot of great years ahead in terms of ongoing profitability.  I'm sure that traditonal financial planning would strongly argue against skipping the free money, but I'd already have a nice traditional retirement contribution from my pension and the thought of losing even more flexibility related to withdrawl rules (retirement for me is 30+ years away) seems questionable.

Or, do folks feel good enough about the security of something in the vein of the Sprott funds to rely on them long term as a way to take advantage of retirement accounts while still having physical backing of the PM?

Poet's picture
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1892
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Issues like this have been posted around before, so this may be helpful:


PastTense's picture
Status: Bronze Member (Offline)
Joined: Dec 13 2010
Posts: 47
They match this 3% on a

They match this 3% on a one-to-one basis? So they are putting up half the money?

This is a no-brainer. Definitely take advantage of it Sprott and CEF are highly trustworthy companies--it is clear they have the physical gold and silver to back their investments.

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