Anyone hold gold in an IRA/401k?

Discussion in 'Business, Investing & Finance' started by Concrete Helmet, Nov 30, 2020.

  1. Concrete Helmet

    Concrete Helmet Hook, Line, and Sinker
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    I'm kinda wondering about this as a strategy going forward on at least my IRA. I guess it would also benefit to switch from a traditional to a ROTH when I do so? ...Can a company distribute gold or other precious metals within a PSP?
     
    • BMF

      BMF Bad Mother....
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      I own USAA Precious Metals mutual fund. I've had it for 10+ years. It was way, way, way, way down up until about 12 months ago. It still hasn't come back anywhere close to where I initially got into it, but I dollar cost averaged over the years and sold about 80% of it recently for a nice profit.
       
      • 78

        78 Dazed and Confused
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        Not sure of the existence of employer-sponsored plans that enable the purchase of the commodity, but there are a variety of two-bit IRA custodians that offer it.

        Or you can buy it conveniently in an ETF, but let’s not get ahead of ourselves. A “store of value” is a hedge to currency risk and, as such, should only be bought in moderate amounts. Bitcoin presents all the usual characteristics of a store of value and is probably a better long-term hold than gold.
         
        • Detroitgator

          Detroitgator Well-Known Member
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          Agreed... see my post regarding JPM being hit for a $1B fine for precious metals price manipulation while simultaneously reporting more than $1B in 2020 profits from... precious metals trading.
           
        • Concrete Helmet

          Concrete Helmet Hook, Line, and Sinker
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          Am I grasping at straws when I say these are the exact reasons why I was considering this move?
          One by converting to a Roth I would be "buying down" future taxation, which is only going up, and protecting it's contents with something that isn't subject to inflation(physical gold) but rather "value"? Could be a big upside with the freedom of a Roth?(sooner timeline if market is bonkers or I want the money to invest elsewhere)?

          On the note about moderation, that's exactly why I thought my IRA would be a good idea because I would be limited to a maximum contribution(7K)of physical gold.
          I already have a gold ETF in my personal science experiment funds and will add a little more outside the IRA along with maybe some Bitcoin.

          I should add that I don't foresee my IRA being part of my retirement income but rather a safety deposit box with a tax benefit....am I missing something?
           
        • Gatormac2112

          Gatormac2112 The Voice of Reason
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          Talking about future taxation, that has me very worried. Almost worried enough to take the 30% tax hit now on all my 401k/457b holdings on a Roth conversion because I'm pretty sure where this country is headed taxes will be above 70%. I'm not doing it of course, but the thought had crossed my mind.
           
        • Concrete Helmet

          Concrete Helmet Hook, Line, and Sinker
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          I watched a pretty good video of someone explaining the 5 big changes a Biden adm. would mean....projected capital gains tax....43%, income tax....as high as 52%...trade issues and china flu will has us back to 12-14% unemployment by March...Dow16K by March..
          I almost thought I was the one talking in the video....
           
        • Gatormac2112

          Gatormac2112 The Voice of Reason
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          Capital gains 43%? They really do want to run the country into the ditch :headslap:

          Heck, whats to stop them from getting rid of Roth all together? Nothing is safe or sacred for these fools.
           
          • 78

            78 Dazed and Confused
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            :lol:

            You and I both know that’s neither contextually accurate or reasonable, esp given the absence of a blue wave.

            I’d encourage you to take a closer look at Biden’s plan. The focus is on high, high earners, not the middle class. The Biden capital gains hike is on incomes of over $1 million. How many here would be impacted by that?

            That said, an increase in LT capital gains tax from 20% to being in sync with an uppermost marginal rate of 39.6% is a political stretch at the very least.

            The biggest concern I’d have? A repeal of the expanded standard deduction under the TCJA. That had a positive impact on the middle class.

            If the Democrats don’t gain at least a 50-50 “majority” by way of Harris’ tiebreak visa vis the Senate runoffs in Georgia, you’re looking at very little change to the Code.

            Crete, there a number of factors to weigh on funding a Roth. Are you ineligible for deductible contributions to a traditional IRA? Will your income be higher or lower in retirement?

            But, yes, looking at it as a quasi safety deposit box is a good way to view it. A Roth is a powerful financial tool.
             
          • Gatormac2112

            Gatormac2112 The Voice of Reason
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            Im not that worried over the next 4 years, I’m worried about the next 40 years, AKA my retirement years. With as quickly as socialism and communism has become acceptable and desirable to the youth I worry taxes becoming unreasonable is not a possibility but a probability.
             
            • BMF

              BMF Bad Mother....
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              There's no telling where we're headed w/ future taxes, but it's hard to think it will be equal to or lower than it is now. I make too much to contribute to a Roth. I just turned 50 so I can put $26k into my TSP, which I'm going now. But I'd sure like to find a way to reduce future taxes.

              78 is right about a lot of his bullet points. But I don't for a second believe the "only people making $400K or more will get a tax hike". There will be a trickle down to us commoners - such as gas going up a dollar or two a gallon, property taxes rising to help pay for some of their mandates on local and state governments, higher energy costs, etc.
               
              • Gatormac2112

                Gatormac2112 The Voice of Reason
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                I make too much to contribute to s Roth as well, but going to start making backdoor conversions for me and my wife. Wish i could do more
                 
              • BMF

                BMF Bad Mother....
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                I have a question about that - my wife and I file separately. Can she do a Roth?

                Also, with TSP there's an option for Roth TSP and TSP allows me to put into it. What's the difference in a Roth IRA vs. Roth TSP (Roth TSP is after tax money, just like a regular Roth)?
                 
              • Concrete Helmet

                Concrete Helmet Hook, Line, and Sinker
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                One word for ya....Yellen....
                Another word for...actually 3 UBI/Gov. asst.
                And no I have no faith in paid off RINO's and their fraudulent voting machines in Ga.
                Other than the housing crash not being as bad this is going to make 2008-2014 look like an island vacation...
                 
              • Concrete Helmet

                Concrete Helmet Hook, Line, and Sinker
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                So you think they're not being honest when they say they're only going to put the tip in....:rotfl:
                 
              • Concrete Helmet

                Concrete Helmet Hook, Line, and Sinker
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                There are more advantages to NOT being legally married than you can shake a stick at...especially when your wife/partner is the owner of the company...:lol:
                 
              • Gatormac2112

                Gatormac2112 The Voice of Reason
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                I hate to say I don't know, this is all new to me as well. Like walking in a mine field
                 
                • 78

                  78 Dazed and Confused
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                  Roth contribution rules are more complex for marrieds who file separately. Modified Adjusted Gross Income (AGI + tax exempt interest and certain deductions added back) can’t exceed 10k for either spouse and a working spouse cannot make a contribution on a non-working spouse’s behalf.

                  The TSP Roth is similar to a Roth account but with an expanded contribution limit on equal footing to a 401(k) and without the ability to raid principal without an IRS penalty. It’s also subject to minimum distribution requirements unlike a Roth IRA.

                  That’s a fair amount to digest.
                   
                  • BMF

                    BMF Bad Mother....
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                    Thanks 78! My biggest question about the TSP Roth - is there an income limit (like w/ the regular Roth - which is $139k in 2020)? I don't think there is, but I've never seen it in writing. I googled it and got mixed findings.
                     
                    • 78

                      78 Dazed and Confused
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                      There are no income limits. That’s probably the biggest advantage of the Roth TSP over the Roth IRA.
                       

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