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Frugi
Administrator
USA
627 Posts |
 Posted - 01/04/2008 : 09:57:10
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Some of you may remember back in the summer last year I lost my nice paying job and decided to focus on selling on ebay full time. Selling on ebay has been okay but comes with alot of hassle and between ebay, the flea mrkt & collectors I have all but sold my long amassed fortune of gold, silver, and most else. I 3 weeks ago went back to a former employer from 4 years ago and am working again, even though it is a much downgrade in pay, it is at least a job.
I am still hoarding cents only, and refuse to cash in any any time soon. I stll hoard for the sake of enjoyment and future numismatic benefits. Since Ni got so low I cashed in my nickels, no biggee.
I still hoard canadian and have a bunch of it, and am very glad no one around here (STL) even wants it, good.
Anyway... The point of the topic is I am buying a house in September through a program (I must bring up in a different topic, it is great!) called NACA, this program will alow anyone to buy a house, with no closing costs, guaranteed fixed rate of 1% below market mortgage, tons of seller incentives, cash at closing and etc. They help you buy a house that you can afford. It is great, I have seen personaly several people I know do this, and it works, and it is FREE.
Considering the markets current situation and my current situation I have decided to close out my Simple IRA that I have had for about 1.5 years. The amount is $3,385. I have not contributed to this account since I lost my job on May 1st 2007, and it has gained in value quite well in relation to what I have invested. The IRS normally penalizes you 10% + taxes you on these "withdrawls" or distributions if you draw on the account before age 59.5, and if you have not held the account for more than 2 years the penalty jumps to 25%...OUCH!!!!, I have not had mine 2 years uh, oh..., but wait, there are many exclusions when dealing with IRA's, so if you are considering doing what I am doing, do a little research, because you may find that important loophole for yourself. Since I am a 1st time home buyer I can withdraw up to the full amount penalty free. AMAZING!!!! The taxes I am still responsible for but, NO PENALTIES.
I will be spending about $1500.00 on personal debt (inc. all my C.C.'s), and about $500.00 on some business related debt, and pay off my insurance and utilities for next full quarter. After that I will be 100% debt free and will still have about $1000.00, I imagine I would like to spend it on coinage, and sorta replenish what I sold off. I have been watching the markets for years now and wow it has been tumbling and SHTF is starting for sure even though it started for me when I lost my nice job. This course of action on my part I believe is the best way to go because I will have no further loss in the market related to stocks, but most importantly I will be entering the upcoming SHTF debt free. I say debt free, but I married in September my lovely wife with $20,000.00 debt in student loans, and we will be purchasing a house soon which essentially will put me in debt again, but at least I will be on the right track.
So the question is.. A. What would you do with $3,385.00 &
______________________B. What coins would you buy with $1,000.00
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Crash
Penny Pincher Member
USA
155 Posts |
Posted - 01/04/2008 : 11:52:58
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Frugi,
Withdrawing money from an ira has been my biggest financial mistake in my lifetime. Even though you will be exempt from the 10% penalty,
you will never be able to replace the money back in your ira since the fiscal year that you made your contributions in has passed and you would miss out on all the potential compounded interest you would gain. Now, if you are concerned about a market downturn, you could invest your ira in something less risky such as precious metals or any number of saving vehicles. That being said, most financial advisors that I've read say that the only valid reason for withdrawing from an ira would be for the first time purchase of a home. It's a tough call, but if it were me, since your home purchase isn't until September, I'd try to come up with the money some other way. As far as what coins I would buy with $1000.00, I would do what I do now which is a third pre 82 pennies, a third nickels and a third pre 65 silver coins.
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Edited by - Crash on 01/04/2008 11:54:10 |
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fiatboy
Administrator
912 Posts |
Posted - 01/04/2008 : 13:52:01
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| Buy gold. |
"Bart, it's not about how many stocks you have, it's about how much copper wire you can get out of the building." --- Homer Simpson |
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Crash
Penny Pincher Member
USA
155 Posts |
Posted - 01/04/2008 : 14:49:35
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quote:
I'm waiting for the four digit barrier.
 That was you, right, Fiatboy? |
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What would you do with $3,385.00?
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