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Investing in precious metals

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Re: Investing in precious metals

Postby jfg » Thu May 05, 2011 1:23 am

I hate to take this off track but I have a question or two about 401K. I have a 401K for the first time that my company matches up to 6 percent so I do the full amount. If I didn't work for the company anymore would I have to keep contributing to that 401K to keep it active? Would I be able to cash it out with no penalty other than the tax I pay when filing? Or does it just remain stagnant unless I can bring it over to another company?
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Re: Investing in precious metals

Postby kab21 » Sun May 08, 2011 4:13 am

perlick29 wrote:It seems that my fiancee is pushing me to do this because the value of the U.S. dollar is rapidly declining and silver and gold have yielded much better returns. She thinks that in 2 years time the federal reserve will run out of funds to put in the financial system, and our economy won't rebound, so not investing now would be a huge mistake. I don't know what to make of this since I'm kind of caught between a rock and a hard place. She doesn't seem to get the concept of "reeks of unsustainable growth due to natural regression".

I told her to come up with a percentage that we can discuss to invest but with the high stress level we're under, (ie. wedding in 4 months, she's a teacher graduating from grad school in 2 weeks, working another job, looking for a teacher gig even though there is uncertainty in the teacher job market, my over-enjoyment of the new Mortal Kombat and fantasy baseball, etc.) Something tells me I'm in for an emotional roller coaster here.


Tell her that if she wants to reallocate your financial future that you (plural) should meet with a real financial consultant since her brother is giving her terrible advice. What he (the brother) is suggesting pretty much amounts to gambling. And he has had a really good run recently but buying AFTER massive gains is usually a recipe for disaster. I do think it's okay to do this with a small amount of your portfolio. But not even factoring in the massive early withdrawal fees and taxes, this would be a horrible mistake to do with a significant portion of your portfolio.

the bolded reminds me of a telephone conversation I had with my dad during the winter of 2008/2009. The Dow was plummeting below 10K (down to around 7K) and he really believed that there was no bottom and wanted to know if I agreed that he should selling his stocks before it got worse. I said, ' I don't know where the bottom is but if I had money available I would be buying like crazy right now.' I don't know what he ended up doing since we don't talk that much but I really hope that he rode out the storm because the Dow rebounded to previous levels. I'm not terribly optimistic about the US economy but I HATE all of these people with their doomsday scenarios.
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Re: Investing in precious metals

Postby Art Vandelay » Sun May 08, 2011 5:50 pm

In another few years the only things that will be worth having are food, ammunition and gasoline. I'm investing all of my money in ammo, canned goods, and drums of gas.
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Re: Investing in precious metals

Postby thedude » Sun May 08, 2011 8:28 pm

Art Vandelay wrote:In another few years the only things that will be worth having are food, ammunition and gasoline. I'm investing all of my money in ammo, canned goods, and drums of gas.


Just invest in ammo and then you won't have to worry about the canned goods or the fuel.
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Re: Investing in precious metals

Postby Skin Blues » Mon May 09, 2011 9:30 am

Art Vandelay wrote:In another few years the only things that will be worth having are food, ammunition and gasoline. I'm investing all of my money in ammo, canned goods, and drums of gas.

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Re: Investing in precious metals

Postby urbanbreez » Mon May 09, 2011 11:54 am

jfg wrote:I hate to take this off track but I have a question or two about 401K. I have a 401K for the first time that my company matches up to 6 percent so I do the full amount. If I didn't work for the company anymore would I have to keep contributing to that 401K to keep it active? Would I be able to cash it out with no penalty other than the tax I pay when filing? Or does it just remain stagnant unless I can bring it over to another company?


A 401k will remain "active" but your former company won't be contributing anymore, which removes much of the incentive for you to contribute. It should just sit there untill you get another job and have them agree to match a percentage according to your investment. You will always, always have a penalty and be taxed up the wazzu if you take from a 401k before retirement age of like 65. Always remember, it's designed as a retirement account, and has great advantages in that regard. If it's used outside of what it was designed for, you will get creamed.
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Re: Investing in precious metals

Postby StlSluggers » Mon May 09, 2011 4:29 pm

urbanbreez wrote:
jfg wrote:I hate to take this off track but I have a question or two about 401K. I have a 401K for the first time that my company matches up to 6 percent so I do the full amount. If I didn't work for the company anymore would I have to keep contributing to that 401K to keep it active? Would I be able to cash it out with no penalty other than the tax I pay when filing? Or does it just remain stagnant unless I can bring it over to another company?


A 401k will remain "active" but your former company won't be contributing anymore, which removes much of the incentive for you to contribute. It should just sit there untill you get another job and have them agree to match a percentage according to your investment. You will always, always have a penalty and be taxed up the wazzu if you take from a 401k before retirement age of like 65. Always remember, it's designed as a retirement account, and has great advantages in that regard. If it's used outside of what it was designed for, you will get creamed.

And he can roll the 401k funds into an IRA that he controls. I have an IRA that holds funds from my last two 401ks, and it will be the destination of my current 401k if I ever leave this job.
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Re: Investing in precious metals

Postby perlick29 » Fri Jul 29, 2011 7:05 pm

I wanted to give this thread a bump by saying firstly that we invested in silver back in May using some non-essential funds. In just under 3 months it has risen a bit from when we bought it, and with the looming economy issues it should continue to rise.

But much more importantly, what do people make of the recent developments with the debt limit approaching? Most people believe the senate will kill the bill that just passed in congress.

Being that I am far from a financial expert, can anyone fill me on what could happen, and is there any chance that major banks like Wells Fargo would be unable to give us our money? Thanks, and as I'm sure you're able to figure out, my future wife is feeling a little worried over this whole situation.
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Re: Investing in precious metals

Postby thedude » Fri Jul 29, 2011 8:16 pm

perlick29 wrote:Being that I am far from a financial expert, can anyone fill me on what could happen, and is there any chance that major banks like Wells Fargo would be unable to give us our money? Thanks, and as I'm sure you're able to figure out, my future wife is feeling a little worried over this whole situation.


The worst thing that can happen to the economy is for people to start pulling their money out of the banks. That is what killed the banks in 1929 and sunk Bear Stearns in 2008.
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Re: Investing in precious metals

Postby RugbyD » Sat Jul 30, 2011 8:44 am

There is no reason for there to be a bank run b/c of the debt ceiling. Nothing to worry about.
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