401k/IRA Screw Job Coming?

Market Ticker ^ | 01/08/2009 | Karl Denninger

[Travis McGee]

BIG BROTHER SAYS INVEST IN VICTORY BONDS: OR ELSE!

[FightforFreedomCA]

LOL - Thanks Zeddicus.

Doing some research on cashing out my IRA early and such. Looks like I would be left with around 42K after everyone got their share of taxes. Not so good, although, 42K in pocket is better than nothing, I suppose.

Thanks again!

[Travis McGee]

a fiction piece last month about America’s dollar being destroyed Argentine style.

Fiction this year, reality soon. "Argentina with nukes" is our future.

[Travis McGee]

I am more and more becoming an advocate for diversifying into gold. And I don’t mean certificates, I mean physical, you-can-hold-it-in-your-hands-and-look-at-it, gold.

Bigtime. Until they outlaw it. Again. (Or try to.)

[dearolddad]

One of my accounts(American Funds) grew 30% last quarter.

I have American Funds also. I got just about the same return.

[Snardius]

Looks like I would be left with around 42K after everyone got their share of taxes.

That is, of course, (and I'm not recommending this course of action) that you would allow everyone to get their share before you got yours.

[FromLori]

This Is The Government: Your Legal Right To Redeem Your Money Market Account Has Been Denied

http://www.zerohedge.com/article/government-your-legal-right-redeem-your-money-market-account-has-been-denied

[Travis McGee]

"My suspicion is that this leads to civil war."

More like a Revolutionary War.

CW2 Ping

[Snardius]

I mean physical, you-can-hold-it-in-your-hands-and-look-at-it, gold.

And that may be all it will be useful for...something shiney to look at and hold...but what will you be able to trade for food, clothing and shelter?

[Travis McGee]

All this talk about where to stash your money if there is a revolution/civil war is pointless. Because if this country melts down like that, the US currency will become worthless. We'll be using something else as a medium of exchange...something that is valuable and easily trade-able.

Not necessarily. Gold and guns, certainly, but have some cash as well. A devalued dollar doesn't mean a disappeared dollar. Take Argentina 2001 until today as a case in point. The Peso was devalued 4-1 against the US Dollar overnight and banks accounts were frozen, but the Peso didn't disappear. But if you didn't have cash at home in 2002, you were SCREWED since the banks were all closed, and you couldn't access your accounts. When they reopened, you could only take out a tiny amount per week.

Gold, guns, food, cash and maybe even Euros. Keep diversified.

Read Fernando Aguirre's book "The Modern Survival Guide" (on Amazon) for a realistic look at a monetary collapse and living in the aftermath.

[Travis McGee]

I’m into diversification, and that’s why I’m a huge fan of FerFal and especially his book “The Modern Survival Guide.”

If you have to flee, gold makes great “flight capital.” How much wealth in the form of ammo or canned food can you put into a daypack and carry over a border, or onto a Cessna?

I agree with FerFAL. Have them all. Guns, gold, food, ammo, dollars, euros, foreign real estate etc. “Diversify.” Don’t have all your eggs in one basket, or even different eggs in a basket that you can’t move if you need to scram in a hurry.

[FightforFreedomCA]

That is, of course, (and I'm not recommending this course of action) that you would allow everyone to get their share before you got yours.

Now or later. It would be reported to IRS, so being a financial commoner, I don't know a loophole to get around this :(

[Zeddicus]

This kind of doomsday speculation makes my head hurt, but I agree on some level with the “cash is king” sentiment. Even if TSHTF, physical cash, even though just paper, is still:

1) recognized by all
2) easily portable
3) virtually impossible to counterfeit
4) scarce

So yeah, I think physical dollars will still be useful as a medium of exchange, perhaps even more so than gold, if all hell breaks loose.

[Travis McGee]

Paper dollars will just be one arrow in your quiver. You will also need long term food supplies, guns etc. Check out Ferfal’s blogspot, or his book “The Modern Survival Guide.”

Argentina went through a monetary collapse. It’s not just armchair survivalism and “fending off biker zombie attacks” in your fortified compound in Montana. It’s reality based. Check it out.

[1066AD]

Something similar was floated as a way to help pay for HillaryCare back in 93 or 94.

[wolfcreek]

“These idiots are trying to start CWII.”

Hell Yes they are! First to take any wealth we might have and then to de-populate the country.

[Snardius]

Now or later. It would be reported to IRS, so being a financial commoner, I don't know a loophole to get around this

Well, some people would think that if you took your money now, you don't have to settle up with the authorities until April 16, 2011 or the Fall of 2011 if you filed an extension. By then, the IRS, as we know it, may not exist. But that's just silly thinking...leave your money in the IRA...nothing bad is going to happen.

[Lurker]

Here's a little trick we've been using for the past year or so.

Every day when we get home anything smaller than a 10 dollar bill is pulled out of the wallet or purse and put into an envelope in our safe.

Trust me, you'll never miss it. And in fairly short order you'll have a sizeable pile of small currency.

In 6 months we had almost a grand in there. We were stunned.

L

[Snardius]

I don't know a loophole to get around this

Or you could withdraw the money, don't withhold for taxes, and leave the country (you could hide the cash in your underwear, nobody thinks to check there). Change your name, dye your hair, gain or lose 100lbs. And you're home free.

[Grampa Dave]

The link below has many Free Republic postings on this potential $crew job.