retirement accounts ...

S

silvstack

Member
i've got a retirement account i started with a prior employer. i know someone who literally sold everything, incurring substantial penalties. that seems drastic for me, but i am considering how i can use the account to purchase metals. on one hand i've been entertaining the idea of simply investing in mostly mining stocks, but, a bit more drastic, i have considered transferring the account value to one of those i.r.a. custodial places where i can thus keep precious metals in my i.r.a., paying fees, etc.

i've done nothing about this for years and i'm no worse off for it. but i'm sure other stackers have struggled with bringing i.r.a. accounts in-line with their stacking mind-set, and i'm wondering thoughts in general, that might help me do something other than doing nothing.
 
So I've been looking into precious metal IRAs myself and honestly, I can't see the plus in it.

Assuming a Roth IRA where my money has already been taxed, I can put up to $5000 a year and then choose investment plans, OR I can use that money to buy precious metals and pay them to store it for me. Now, since it's an IRA, if I need to withdraw the money early, I pay a tax penalty.

Correct so far?

So why not buy the same metals, with no limit, and stuff it in my mattress and sell it whenever I want at no penalty (other than capital gains I guess, not sure how to even declare the profit on a sale at this point in my silver career)? So far, the IRA does not make sense to me. Especially since a vast majority of the point of precious metals is to actually have them semi or readily available, not stored by someone else. Are those accounts even FDIC insured?

I do plan to call of the US dealers and ask some questions, but I'm not there yet.

I suppose if I was rolling over a 401k from a former job I could roll it into that as opposed to the stock market. That might be a better scenario.

Joel
 
I would be very careful when it comes to investing in mining stocks. I by no means claim to be a stock expert; but everything I have read says mining stocks can be VERY risky.
 
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