Posted on 12/05/2012 4:40:34 PM PST by Joe the Pimpernel
I turned 60 this year. I have a conventional and Roth IRA. The Roth obviously is tax free. I intend to work until the day I die, if God grants me the favor. Should I take the tax hit on the conventional IRA this year before the tax hikes kick in and cash it all out, or some of it?
Part of why I want to do this is so that if Ubama decides to nationalize 401(k)s and IRAs, he can't get me. The other is because taxes are going up.
Any advice?
Yes, all forms of gold, gold coinage, any form of gold can be confiscated - except for “high numismatic value US Mint gold coins.”
Over time the numismatic value of some of such coins often increases above the value of the gold itself. This is a major part of why they can't be confiscated.
But, despite the increase in both the metal and numismatic value, that value only comes to fruition when the coin is finally sold to a buyer - who always want to dicker on the price, of course. But, selling of such coinage isn't that difficult, buyers compete with each other, and auctions usually bring a better price than from approaching an individual buyer.
I understand that, I was wondering if I had invested in Canadian Gold Coins if our President could do an FDR on those?
Yes, most certainly - any foreign gold coins can be confiscated.
Is there any other way to invest in like *gold* such as stocks in gold companies etc that couldnt be FDR’d by OhBronco ?
Thank you
Bump the bracket, load up your Roth IRA with enough traditional IRA money to almost reach the next tax bracket.
If you truly believe you’ll only get 1-2% from risky investments, you might as well put money into the US I-series savings bonds. They are paying 2.6%, it is tax-deferred, and if inflation takes off their rates go up with it.
I’ve got a bunch of money parked in a 2% college savings account, it’s tax-free if I use the money for my kid’s college, and I got a state tax deduction for every dollar I put into the account.
The major tax change seems to be eliminating the lower rates for capital gains. That won’t matter for IRAs, where you’ve already given up dividend and capital gains treatment in exchange for the tax-deferred growth. All IRA and 401K money is taxed as ordinary income.
The theory behind Roth IRAs is that taxes aren’t likely to be lower in the future, so you might as well invest after-tax dollars but get your earnings fully tax-free, rather than get the tax deduction now, and then pay full income tax on both the principle and earnings later.
Downside to a ROTH is that it will be the first thing targeted, and there’s nothing to keep them from taking your ROTH IRA you had for 20 years, and deciding that from now on the appreciation will be taxable. I expect that to happen sooner rather than later, and certainly before they nationalize 401Ks.
Security in bonds? Don’t tell me and other ex-holders of GM bonds that unless of course you belong to one of Obama’s pet unions like UAW. This Monarch elected by parasites and fellow racist can do anything he chooses because the Congress refuses to do their job. We my friends are in deep Kim-Chee!
Collectibles (Gold coins) held one year or longer are taxed at 28% as capital gains.
Thanks
Buy lead, and the accompanying delivery systems.
No Tax going from paper $$ to gold, but up to a 25% confiscation fee, er, “commission”, so for $100,000 cash, you’ll end up with $75,000 worth of gold.
If done wrong, yes. However retirees can put money into a Gold IRA and it becomes a tax shelter.
You can put gold bars in there, but they can be confiscated by US government under certain circumstances - so I don't advise keeping gold bars. But they do qualify for use in a tax sheltered gold IRA.
Caveat, only high value collectable US Gold coins (purity of 24 karat) and 22 karat US Gold Eagles are the only coins allowed in a tax sheltered Gold IRA - and they can't be confiscated by US government.
Maybe - depending on where you go. But, with Lear Capital I've gotten almost a 1 for 1 transition. Yes there is a fee for coming up with the gold coins that I can buy from them, but that fee is quite nominal - more like 2 to 2.4 percent, depending entirely on the coin and its worth and scarcity.
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