401K Gold IRA Joke

The newest investment strategy is the gold 401k rollovers.  The first thing to remember about a 401k plan, is that the gold cannot be physically in your possession. 

The first rule of buying gold, is that you take possession of it. If you can’t touch it, you do not own it.  Gold is not a retirement plan; it is a hedge against a country ruining its currency.

 If your currency is stable, you can buy gold with no problem. If it is unstable, gold will not be available for purchase at any reasonably price.  

 The big thing about retirement as you age, is that it creeps up on you slowly. Your concepts have to change as you age.  Gold as a hedge against inflation at age 40 with a life expectancy of 80 is different than if you are 78 wondering if you’ll live to see 98. 

 If you are young, gold is probably a better investment than a 401k.  The problem is, most people cannot save for retirement at a young age, they will spend it.  The 401k keeps them from spending it; but that is what the government wants. They can borrow your hard dollars today for inflated dollars 40 years later.  50 years ago, cigarettes were 25 cents a pack, now they are $8.50.   So, to save for retirement if you are young, with this systemic inflation, get ahead of the curve and buy gold.

 I digress, a 401k gold IRA will have costs:  the gold purchase commission, insurance and storage fees.  On top of that, suppose you sell the gold at a higher price?  Get ready, you have a 1099 for appreciation, coming your way at tax time.

 Another thing not mentioned, is the integrity of the company offering the gold IRA.  In Europe a while back the gold depository couldn’t pay the depositors in gold, they didn’t have it.  They paid them in cash. Most of these investment firms can buy an amount of gold that covers withdrawals. The rest is invested for financial return.

 The thing you need to realize about a 401k fund is that they don’t have to invest your funds as designate. They do have to pay on your investment as it would have performed. If you have one, how do they deliver the gold bullion to you? Think about that!

 Figure that you have 400k in your 401k.  In the last 5 years, its buying power has dropped to 200k.  That is kind of upsetting. What I can buy cost twice as much and it is still locked into the 401K.  Technically you still have 400k to retire on.  If you had put it in gold 10 years ago, you’d still have the same amount of gold, but its price has doubled. You cannot walk out of a 401K you are stuck with it; you can’t sell it all at one time and get out of it, without horrendous tax consequences.

  We are not talking about investment here; we are talking about government-initiated inflation.  Inflation is a tax by government. The government cannot tax people who have no money, they can only tax people who have savings. They can directly tax your savings or indirectly print dollars that make your savings worth less. My 400K retirement now has the buying power of 200K today. Kind of sucks, doesn’t it?

 To preserve your savings, you need to liquidate your 401k in reasonable increments, and buy gold or platinum.

 Remember one thing when the government runs out of money, they have only one place to go to, the people that have saved money. If you have no money, the government doesn’t give a damn about you.

 Gold, Silver and Platinum maintain value. Right now, everyone is interested in a gold IRA.  Figure this though, an investment in platinum is just as good as gold and it is half its price, and four times rarer.  Hmmm ---of course the obvious escapes most of us, go figure!

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