In a TOTAL banking meltdown..............

[k0xxx]

You know I just came across a web site today that was talking about trading in some of your 401k for precious metals.

Most of this is over my head. K0xxx have you ever heard of this? And really in an emergency situation who has your money?

http://www.usgoldbureau.com/gold-monitor-newsletter?gclid=CPiX87Xe4Z8CFRcdawod9WACHA

Let me know what you think.

Thanks gina

Gina, I have heard of precious metals backed IRA's, but I am not really familiar with them and I would have to defer to the professionals.

My concern would be that I have read a lot about precious metal IRA's and Metals ETFs (Exchange Traded Funds) that have sold way more gold than is physically available. Whether this is true or not... I can't say. Also, I have heard that there may be some tax changes in the works, that may remove some of the benefits of gold IRA's.

In my book, there is no substitute for owning the physical metal, as that is what I do. However, that is not for everyone and it is not without certain inherent risks. All I can say is do your homework, consult a professional, do more homework and verify what the professional tells you, and make your best decision. I'm sorry that I can't be of any real help, but your financial future is too important for me to try to advise anyone.

 

[Buttercup Chillin]

This has been an interesting read. Especially as I was just this week reading that the Chinese are concerned about the $ and them and others want the U.S. to change to a different monetary system. Now, that is lose of confidence, coming through.

So does every one here have their homes paid off?

I have been thinking about cashing out the 401K and paying ours off. That is if there's even enough left after taxes. With DH having to take an early retirement there won't be much current money coming in. We don't want to have to worry about loosing our place in a total recession. And I would think that a change in monetary system is going to bring it about.

I don't want any debt when a new monetary system is put in place. The 50's weren't that great and I grew up on a self sufficient farm. The inflation of the 70's was horrid. My daughter can't even imagine what inflation really is. She has grown up with the low interest rates currently being offered and doesn't know any different.

So, are you paying off your home loans???
When you buy land, are you paying cash??

 

[DrakeMaiden]

We don't want to have to worry about loosing our place in a total recession.

Did you mean depression.

If I had the choice, I would rather live in a paid off home than have money in the market. I would only caution that having some liquid capital or assets is probably a good idea . . . you don't want all your eggs in one basket, especially if you cannot pick up the basket and move it if you have to.

 

[Wifezilla]

If I could I would pay it off. Right now half of our customers are going out of business. No money for paying off stuff.

If I had a 401 K I would pay off the house.

 

[ohiofarmgirl]

you know i've been kinda thinking this is gonna be a rough year. i know they keep saying its getting better but there is such a lag for the regular joe.

we are so glad that we are debt free but we worry that our friends/family are all going to show up and want to live with us!

we tell them that everybody has to pluck!
;-)

buttercup - i'd say that it would probably depend on how much you have left to pay off (i'm not asking!). and the value of your land - can/do you farm? can you be self sufficient (as much as possible), do you have a water source? are you close or far away from a population center?

you may be better off if you could sell and 'trade down' to a less expensive property that you can pay for in cash.

 

[k0xxx]

My situation was very similar to yours. I cashed mine in and paid cash for our home when I was forced to take a medical retirement (at age 40). I knew that I wouldn't have much of an income, and I didn't want to have a mortgage to worry about. At the moment, the only "debt" other than utilities, is our property taxes ($60 +/- per year, you gotta love Arkansas!). We're poor, but it doesn't take us much to get by and we are actually in better shape than most of our working friends.

Personally, if I had a mortgage, car note, etc., I'd be very worried about the next few years, but then I am certainly no expert, AND my nickname is Henny Penny.

 

[gettinaclue]

I agree it's going to get worse before it gets better.

We don't have the money to invest since we are basically living paycheck to paycheck. All investments that we had made were cashed in to pay for my sons surgery and constant doctors visits...and we have "great medical coverage", better than most of rest of the USA.

Hubby and I were talking about paying off the house the other night. We have a 30 year loan, have been here 6 years or so, and our principle has hardly moved from all the interest that we are paying...and we only have 5%.

We are discussing different way of changing this 30yr loan in to a 13yr loan.

Maybe the economy will be all better by then, maybe not. Either way, we won't have a mortgage and we will have our land.

 

[DrakeMaiden]

At the moment, the only "debt" other than utilities, is our property taxes ($60 +/- per year, you gotta love Arkansas!).

I bet you have more land than we have too. I don't even want to tell you how much we pay in property tax, but it is in the thousands per year.

 

[ohiofarmgirl]

hey DM!

yep i remember those days.... and you cant get the ag discount in town! whoot!

 

[DrakeMaiden]

Hey OFG!

Well, we could get ag status where we are, if we had enough land. We only have 2.5 acres.

ETA: That reminds me . . . congrats on your recent trip to the appraisers!