| Author |
 Topic  |
|
|
orionstarman
Penny Pincher Member
USA
106 Posts |
 Posted - 03/16/2009 : 19:05:52
|
|
I have been listening to Peter Schiff a lot lately. And I got to tell ya he's scaring the hell out of me. The stock market is in the dumper. My 401 has lost half it value. Unemployment is up. My job has cut out all overtime. Bush/Obama have done all the wrong things to try and fix the economy. And now that I have moved my money out of stocks and into bond funds Schiff say's that bonds/dollars are ready to collapse. The only money that I have set aside is the money in my 401. Would it be a good idea to borrow money from my 401 and buy gold/silver. If the dollar does collapse than I would be paying back with cheaper dollars and if it doesn't I can always sell the gold/silver to pay it back. Or am I thinking about this the wrong way?
|
Those who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety.--Benjamin Franklin
|
Edited by - orionstarman on 03/16/2009 21:03:04 |
|
|
fb101
Administrator
USA
2856 Posts |
Posted - 03/16/2009 : 19:45:03
|
I agree that with the historic high values in bonds, they have no place left to go but down.
As far as investment advice, I wish I knew. |
 |
 |
|
|
aaron239
Penny Collector Member
USA
260 Posts |
Posted - 03/16/2009 : 21:10:00
|
| Well one good thing going for you at this moment, you have a job. I know with my job, If I have to give someone overtime, that means I need to hire another person. |
|
|
|
orionstarman
Penny Pincher Member
USA
106 Posts |
Posted - 03/17/2009 : 03:25:01
|
quote:
Originally posted by aaron239
Well one good thing going for you at this moment, you have a job. I know with my job, If I have to give someone overtime, that means I need to hire another person.
Isn't it cheaper to give someone overtime than to hire an additional person? |
Those who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety.--Benjamin Franklin
|
|
|
|
wagsthadog
Penny Hoarding Member
USA
565 Posts |
Posted - 03/17/2009 : 14:12:00
|
Hi there-
I'm NOT a financier (thank God), just a regular guy, but I would just start buying precious metals.
Now, I wouldn't go crazy and put every single dollar you own in precious metals, but (I don't know what your finances are) maybe 3-5K ounces of silver would be a good goal for you to get if you don't have it already (about 5 $1000 face bags of 90% silver), and maybe a tube or two of 1-ounce gold coins.
I listen to Schiff, Rogers, and Ron Paul religiously, but I never wanted to put every single cent into precious metals (close, tho : D ) and eat beans for the rest of my life.
Get out there. See what's happening. Be open to new ideas. Be wary of "new trends" or "sure things." Live your life.
JMO
wags |
Only when they CAN'T have it, ......THEN they'll want it.
I love Cents. If you get an UNC box, you win. If you get a regular circ. box, you win. If you get a zinc box, you don't lose....so you still win. |
|
|
|
horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 03/17/2009 : 14:57:41
|
Most people would consider taking money out of your 401K to invest in gold and silver as a bit extreme. Also you won't be able to borrow to do this unless you lie. So that means paying taxes + 10% penalty on anything that you take out.
So, the first things that I would ask is what kind of 401K plan do you have and what are your investment options within the plan? Is your plan tied to your current employer and does your employer do matching? |
|
|
|
No82s
Penny Pincher Member
USA
198 Posts |
Posted - 03/17/2009 : 15:01:23
|
| Actually, I believe the early withdrawl penalty on a 401K is 20%. So it can get pretty costly. |
The difference between an optimist and a pessimist is that the pessimist is better informed. |
|
|
|
No82s
Penny Pincher Member
USA
198 Posts |
Posted - 03/17/2009 : 15:02:44
|
| Actually, I believe the early withdrawl penalty on a 401K is 20%. So it can get pretty costly. |
The difference between an optimist and a pessimist is that the pessimist is better informed. |
|
|
|
Delawhere Jack
1000+ Penny Miser Member
USA
1680 Posts |
Posted - 03/17/2009 : 18:13:31
|
quote:
Originally posted by horgad
Most people would consider taking money out of your 401K to invest in gold and silver as a bit extreme. Also you won't be able to borrow to do this unless you lie. So that means paying taxes + 10% penalty on anything that you take out.
My 401k plan allows you to take a loan of up to 50% of your vested balance without tax or penalty, unless you go delinquent on repayment.
I'm planning to take the maximum loan that I can against my 401k after profit sharing contribution is made on April 15th. I'll be using the funds for a down payment on a second property...with farmable land.....and deer.
Even if I use the funds for some other purpose, I'd rather repay it over a few years at 4.25% interest rather than see it just vanish. I'm quite certain that inflation will exceed 4.25% in the near future (well, actually it exceeds that now).
|
"Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty." Thomas Jefferson
|
|
|
|
El Dee
Penny Hoarding Member
USA
547 Posts |
Posted - 03/17/2009 : 22:50:59
|
Horgad, most plans allow you to take out a loan, no problem. You're probably thinking of an early withdrawal for which there are only a few exceptions.
Everybody, think VERY carefully if you want to take a loan against your 401k. You are inviting Murphy if you do this. If you lose your job, the unpaid loan balance is...*PRESTO*...a distribution that you pay the 10% penalty on, and must add to your taxable income.
I worked with a guy who proudly bought a car with a 401k loan.
Then the company got sold and we were all cut. |
Trust the government? Ask an Indian. |
Edited by - El Dee on 03/17/2009 22:52:26 |
|
|
|
aaron239
Penny Collector Member
USA
260 Posts |
Posted - 03/17/2009 : 23:12:06
|
quote:
Originally posted by orionstarman
quote:
Originally posted by aaron239
Well one good thing going for you at this moment, you have a job. I know with my job, If I have to give someone overtime, that means I need to hire another person.
Isn't it cheaper to give someone overtime than to hire an additional person?
In the short term, yes. In the long term no. Why pay someone who has been there longer making more money per hour 1 and half pay when I could hire someone else and pay them regular pay and probably a lower hourly rate. Sure its a pain to train new hires, but thats part of my job.
Not to mention, its so easy to find employees right now. Now finding good help... thats the hard part. |
Edited by - aaron239 on 03/17/2009 23:13:20 |
|
|
|
horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 03/18/2009 : 08:00:27
|
Yeah, I was thinking of my own account which is a rollover IRA. For a 401K plan the rules are specific to the plan.
The benefit of the rollover IRA is that it is just like a regular account at a stock broker so you can buy anything. So, what I have done over the years is move my 401K money into my IRA so that I would have more flexibility in my investments.
Of course, that does not work if you still work at the place where your 401K is at...you can't rollover until you leave. |
|
|
| |
Topic |
|
What to do?
Forum Locked
