Roth IRA Help

[Pyramid]

Perhaps you traders can assist. I've put off making my annual contribution to my Roth IRA so far thinking there would be a 20% drop in the S&P...which doesn't appear to be happening. Should I bite the bullet and just do it and be done with it or keep waiting? BTW, my IRA is 75% traditional stocks/bonds and 25% in PM's and mining. Thanx!

[Weatherman]

My vote is to keep waiting - as in no more deposits into an IRA (unless they are matched with free money from your employer). It is difficult to imagine that the IRA rules will not be changed in the future to enable government to get their hands on all the juicy plums sitting defenselessly in IRAs. I think using available funds to purchase more preps and more silver or gold metal will be the winning strategy. As always, however, DYODD!

[Twisted Avatar]

I agree keep your money on the sidelines for as long as possible

The Rules changes are coming .........we just dont know when but rest assured it will be you who is left holding the bag.

Forward as much money as possble into tangible assets

Handcuffing yourself to the market is the worst place you want to be

Especially when we have insiders and CEO's dumping their shares at a pace more rapid than the great depression.


T

[Blueice Mark II]

Weatherman, just like the weather, no one knows what is going to happen...

This is the only tax free instrument given to US taxpayers (producers)...

Use is today and as often as you can.

[Gcubed]

Tax delayed is not tax free.

[Blueice Mark II]

Tax delayed is not tax free.

Please to see you are transmitting, Gcubed!..

The gains on a Roth are indeed free of Federal income tax...

[Gcubed]

I humbly stand corrected. I wonder when the rules will change...

[Weatherman]

Weatherman, just like the weather, no one knows what is going to happen...

This is the only tax free instrument given to US taxpayers (producers)...

Use is today and as often as you can.

I agree completely that no one knows what will happen. Everything is a gamble. The race is not always to the swift, nor the battle to the strong, but that sure is the way I want to bet! When I see money sitting in an easy to access pot that is protected only by a few rules written years ago, and governments at all levels are desperate for more revenue, my bet is those governments will find a way to get into the pot.

The gains on a Roth are indeed free of Federal income tax...

My guess is that the gains will continue to be tax free in the future too. The good news about tax free returns will mean IRA holders will get more 30 year bonds after the government mandates that all IRA assets must be converted to 30 year bonds at a fixed 4% annual interest rate (to protect IRA holders from possible loss, of course ), and that proceeds can only be withdrawn in the form of 30 year bonds which cannot be sold but must be held to maturity. I would prefer to have my funds in investments that will reflect the coming inflationary tsunami, and that I will have more immediate control over. But I am only guessing, like everyone else has to do.

[Blueice Mark II]

Interesting thought, Weatherman...I suspect, to cover their dirty asses, they would be 100 year bonds, paying interest only...

This plan was hatch by a deputy Secretary of both Treasury and Labor, I believe..

This will not happen, until WDC ability to taxing comes to an end, which is currently not the present state...

If we have massive inflation, cash will rot and you will pass up significant gains in miners..

Furthermore, if it gets close to reality, then just close your account....

[Montecristo]

Perhaps you traders can assist. I've put off making my annual contribution to my Roth IRA so far thinking there would be a 20% drop in the S&P...which doesn't appear to be happening. Should I bite the bullet and just do it and be done with it or keep waiting? BTW, my IRA is 75% traditional stocks/bonds and 25% in PM's and mining. Thanx!

I was in a similar position today. I had to make my 2009 contribution to get credit on my taxes, but I also anticipate a drop in stocks (although I feel it will be more than 20%).

I called the MF company and asked if I could send the check and have it deposited to cash and then decide what to do with it later. Of course, to "financial planner" this was a completely ridiculous idea. He kept harping that all his company's MF's are up and I should not let my money sit on the sidelines when it could be "working" for me. He repeatedly said 2010 will be even better than 2009 for stock performance. This went on for 10 minutes complete with him having me pull up various charts on my computer so he could show me how good all the indicators are looking for 2010 while he explained them to me over the phone. I kept politely declining saying to please just let it sit in cash for now and I will decide where to put it later. He then says, "You're not one of those "doom and gloomers" thinking we are in for another big correction are you?" I said, "Worse! I'm a gold bug!"

After that he gave up and left me alone saying the money could sit in cash as long as I wanted.

[Pyramid]

Thanx for the comments everyone!

I'll let this thread run awhile longer before I make my decision. BUT, a Roth IRA is Tax-free upon withdrawel because I've already paid the income taxes. I agree with Weatherman that I should spend more FRN's on preps and PM's; I'm half there (Have a nice physical position, and have a nice supply of dry powder when the "time is right" to add more physical, but am lacking severely in the prep department, but can't do much about it unfortunately - lack of a place in the country). Leaning toward just doing it on the next pullback because I won't be retiring for 20 years anyway, and because a significant chunk will go into PM's and mining shares anyway. I'm not necessarilly a doom and gloom guy, so I think it's prudent to still have a good % of investments in the market...just not too much. Keep the comments coming folks.

[Oldmansmith]

This is the only tax free instrument given to US taxpayers (producers)...

Use is today and as often as you can.

If you trust the government, then this is great.

They wouldn't ever lie, would they?

What did they tell the Indians when they "gave " them Oklahoma? "As long as the sun shines and rain falls" or something like that? Or until we find oil and decide something different? Hmmmm.... the government needs money and where o where are they ever going to find it? Of course they gave their word about the Roth IRA's, you can take that to the bank (If it is still open).

[SongSungAU]

If you trust the government, then this is great.

They wouldn't ever lie, would they?

What did they tell the Indians when they "gave " them Oklahoma? "As long as the sun shines and rain falls" or something like that? Or until we find oil and decide something different? Hmmmm.... the government needs money and where o where are they ever going to find it? Of course they gave their word about the Roth IRA's, you can take that to the bank (If it is still open).

I hear you loud and clear.

Okay, call me paranoid. I've been reading the book Aftershock. Anyone else read it?

Working on the premise that:
1) hard times are coming
2) stocks are going to fall
3) precious metals will only increase in value
4) cash is not a place you want to store your wealth during an inflationary period
5) tax rates will only increase as a government desperately tries to raise enough revenue.....

You get the picture.

So, today I have money in an IRA. Currently in stock. What if I were to sell all my stock as the book advises doing?
Can't leave the cash sitting in a money market fund.

What about taking a taxable distribution from the IRA and having them withhold Uncle Sam's part (including the 10% penalty) and converting the balance into precious metals?

If the book is correct, I will just lose it all (the vast majority) by leaving it in the stock market.
If the book is correct, having it in an uninsured money market fund won't be a good idea.
If the book is correct, having it in precious metals will at least preserve the value of what's left after taxes.

Granted, this is not something the book advises doing. It's just something I'm thinking about doing and wanted feedback.

I've seen a certain amount of my IRA disappear as the stocks it was invested in have declined. At least this way I would have something left after the crash (if the crash comes as many are saying). And if converted to metal, the value might be preserved instead of watching it all disappear.

What are your thoughts? Am I totally crazy?

[Goldhedge]

I was in a similar position today. I had to make my 2009 contribution to get credit on my taxes, but I also anticipate a drop in stocks (although I feel it will be more than 20%).

That little 1000 point drop in a matter of an hour was hardly the work of some fat-fingered entry...

I think they quit putting lipstick on the pig to see who would be around to date her... no one was....

[SongSungAU]

Okay, I am thinking more about liquidating my IRA. Anybody have any thoughts?
If the currency is going to go through a default/replacement..... is my thinking really so radical?