Posted on 09/27/2012 9:42:18 AM PDT by Chickensoup
I need some advice. I have a small amnount of money in two different brokarge Ira and rollover accounts. Both monies have been moved to cash assets. Not a lot int there but almost enough to pay off the mortgage.
I cannot access it without penalties until next May, which is when I plan to pay off the mortgage. I worry about that money with the way the world is, it may be a widow's mite, but it is the only thing that will let me payoff and keep my house.
If everything goes bad will the moneis evaporate or will it just not be worth anything. I can pay off with worthless moneis I assume?
I understand...if O gets re-elected we are cashing in all our savings bonds, and liquidating all investments. When inflation hits it won’t amount to anything but at least it’ll be better than nothing.
If I am reading your worries correctly, take your accounts and move them to the bank that holds your mortgage. If the SHTF and the bank says the retirement accounts are nada, tell them, “So is my mortgage!”
If you have no other debt pay off the mortgage then you have peace of mind and whatever your payment was extra every month and can start saving.
The only real certainty here is the 10% early withdrawal penalty you would face.
A brokerage account is pretty darn safe if it a Schwab or a T. Rowe Price (or many others, those are just two top-tier names) UNLESS that brokerage is also engaged in futures trading for their own account (eg; like MFGlobal or PFGBest) or also runs hedge funds; in which case you have a small but not non-existent piece of worry about being hypothecated off your assets.
My suggestion would be to call a rep at the brokerage(s) and ask them if they hypothecate customer funds. Of course, if they do, they very well may not admit to doing so.
The other thing you might consider, and maybe this is the simplest bestest is buying an FDIC-insured certificate of deposit inside those accounts. Forget that the interest rate paid is negligable. You would be buying the CD strictly for the FDIC insured aspect. After all, you are already OK holding your funds in cash. But this specifically gets that cash OUT of the firm’s money-market “whatever” and into an FDIC insured status. I like that idea, given what you have stated about your situation.
I guess my question is SHould I wait until April?
I’ve been thinking about this too. I am retired, have no debts, but have financial assets and a house. It seems nothing is safe even if you are willing to accept little return for risk. The value of fiat money, stocks, and bonds can all be eviscerated by government induced hyperinflation.(How else could the massive national debt be serviced let alone payed off?) Precious metals are attractive, but the government will just confiscate them if an underground economy emerges after a crash. They did so before, in 1933, excluding only coins with numismatic value. A virulent left wing regime headed by Obama would never observe such niceties as compensation for takings. It seems like our only hope, if Romney loses, is that somehow we will muddle through a decade of recession.
Take the money, buy a small gold dredge, move to AZ or CA and prospect for your future retirement. Your money will become increasingly worthless as libtards inflate the currency.
I assume that you are in or past your forties.
Consider instead of paying off your mortgage, OVER funding a whole life insurance policy. There are tax advantages for doing so, namely that in your retirement years, you may take money out tax free. Further, there are insurance programs that will provide benefit payment in the event of an incapacitating illness or injury even if you and/or your spouse dies.
If you are interested in hearing more, I can put you in touch with my licensed financial planner who goes to my church. Just drop me a private email.
Go to
www.morningstar.com
and click on the discuss button, find the proper topic and ask your question there vs a political site.
I would say pay off your mortgage in May when you have no penalties.
As long as you have a fixed rate. You can predict what you will owe and unless you have your money in stocks you won’t loose it.
If the economy goes bust before then you will still owe the same and have the money to pay it and your bank will be super happy!
Even though this may be the cheapest loan you can get I personally am anti-loan of any kind. Believing it best to not owe anyone any money and especially not having to pay interest on it.
I believe this will ease you mind at night knowing you owe no one and no one can take your property from you. Just make sure you have a way to pay your taxes and put food on the table. =)
I differ slightly on that one.
I suggest keeping the mortgage (for the present) and setting aside in a safe account at least 4 years of mortgage, taxes and insurance.
This allows an emergency fund that you wouldn’t have if you spent your entire savings paying off the mortgage.
I have the concern that when it gets really ugly, the local taxing authorities are going to raise taxes (even more!) and pursue unpaid property taxes with a vengeance because of their desperation for revenue.
A mortgage free home that is confiscated by the county for taxes is of no value to you.
Paying off with inflated dollars only means something if your income is inflating along with expenses. Fixed incomes don’t do that. If one must depend on a fixed income and is facing a ramp up of inflation then it is better to get the thing paid off because expenses are going p while income is not. In fact, SS payments are going down because part of OBAMACARE is that your insurance premium is going up hard every year. It about doubles in 2014. I figure in 6 years SS will be billing me for the difference.
That current tax rate might just jump up pretty steeply on January 1.
my husband could take out his smallish IRA...but then do what with it?....besides forcing us into a much larger tax category for that year, we have no good ideas what to do with the money other than pay off our HELOC and let the rest sit in 0.5% savings acct....
Buy silver coins and 1oz rounds on the dips and sell half each time silver goes up.
Read here for more information: http://www.lifestylesunlimited.com/
I'm a member, but I have no financial interest in passing this along to you. Best of luck!
You would do that now, if you believe the money to do that would vaporize before you get it out down the road. Then you lose your home as well.
I’d say most here are unqualified to give you advice as to what to do with your money. Most banks have financial planners that can give you some ideas, as well as the brokers with whom you have these funds could also give you advice. Beware of the brokers, as they have a vested interest in having you keep their money with them, but if you find an honest one, and he agrees with your bank’s counselor, I’d say you have some good advice.
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