What Are The Benefits And Liabilities Of Cashing Out My IRA?
March 14, 2011 by Bob Livingston
I am a current subscriber to your newsletter (The Bob Livingston Letter™), and need some advice because of what I read in your recent article about Obama possibly confiscating retirement funds. I am 62 years old, still working and earn $60,000 a year. I have ten more years to pay on my house.
About four years ago, I was laid off from my former job, and I took my 401k and invested it ($235,000) into an Individual Retirement Annuity. Presently, the value is $219,941. The Guaranteed Withdrawal Balance is $311,205, the Guaranteed Annual Withdrawal Amount is $15,560 and the Guaranteed Minimum Withdrawal Benefit Bonus Base is $270,613. I am guaranteed a 5 percent increase per year. My question is what are the benefits and liabilities of cashing out (what will the dollar be worth in four years?), and buying something like silver or gold. If I cashed out today, I would receive $209,000. My only other investment is $13,000 in Canadian Maple Leaf coins. Thank you in advance for your response.
Your best decision so far is your investment in Maple Leaf gold coins as you can see how they have moved up in dollar price.
Everything hinges on whether or not you trust the government. I terminated my retirement accounts about 12 years ago because I believed that gold and silver were much better investments, and I would have control over my money. That decision worked out well.
I believe that retirement accounts are guaranteed instruments of confiscation and I wouldn’t want to be in the same state with one.
The government will steal all retirement accounts by some ruse. They are going to anyway through currency depreciation. The government/Federal Reserve is printing trillions of dollars. Simple logic and arithmetic says that they are diluting the currency, i.e., destroying it. If one keeps pouring water in the milk, soon there will be only water.
Your liability of staying in "government" paper is impoverishment. Of course this is just my opinion.
Please seek other advice before you make a move, but do it YESTERDAY!!!!!!!!!