On the verge of retirement, I am very confused about a few issues, so I hope you can give a few pointers? I have a retirement plan at work and a thrift fund which I recently transferred to an IRA Roth plan. But since the gov`t. will probably find a way to erase that, what could you recommend [in layman`s terms]? I have tried to buy some silver with Underground Profits but they led me to a brokerage that sells only stocks, etc. but not precious metals; plus I need $2,000 up front just to be able to deal to in stocks. I`d appreciate any pointers you have for a rookie.
There are a number of things to consider here, and without all the facts of your situation I’ll just have to try and cover as many as I can. First, understand that I am not a professional financial advisor nor am I a trained lawyer. So you should talk with your financial advisor, accountant or lawyer about the ramifications of withdrawing from your retirement account. Second, you are correct. I believe the government is working toward confiscating individual retirement accounts (IRAs) and 401(k)s. With your Roth IRA, if you’ve just rolled your money into a Roth it may be locked away from you for up to five years unless you want to pay taxes on the withdrawal. If the option is available to you, you may want to designate a significant portion of the contents to a commodities fund or funds — particularly those investing in oil exploration and mining precious metals. I believe this where the growth will be. Soft commodities like farm products will rise as well. You should ask your fund manager whether there is the option to put part of your funds in physical metals. When you turn 59½, (excepting the five-year rule) you can begin withdrawing your money tax-free. I would do that at the first opportunity and invest a significant portion in gold and silver and hold some cash in your possession.
As for buying silver — or gold if you can afford it — there are a number of places you can go. Established local coin and gold dealers are a good source. They can usually sell you small quantities at a time and their markup tends to be less because they have lower overhead. One coin and gold dealer I know is Walt Bartee Coins and Bullion in Huntsville, Ala., telephone 1-800-743-1448. Bartee Coins is a small, independent dealer and it sometimes takes a number of tries to get through on the telephone. Tell them that Bob said he would give you a competitive price. There are larger dealers as well. One company we recommend is Asset Strategies International. You can also use www.goldprice.org. There you will find information on gold and silver purchasing as well as a comparative list of several dealers, their prices and fees and links to their sites.
Silver is a great investment right now. I believe it has more upside than gold. The best option is to buy junk silver. That is pre-1964 silver coins. They are worth much more than their face value because of their silver content. Plus, they will be readily accepted in trade because they look like our coins of today. You can also buy American silver Eagles. They are 1-ounce silver “dollars” and they cost about $30 each, if you can find a dealer that will sell them at “spot,” that is the current price of silver.