C767f03aeb282b9660d8157840047228

We are converting a 401k to a self directed offshore IRA LLC. We can use it to invest in precious metals, real estate, foreign currency, etc.

Dr. Evil @ over 2 years ago

Comments (58)

C767f03aeb282b9660d8157840047228

Hubby was anxious to get out of the stock market and away from US currency. The Chinese are buying up gold and he believes they will make a play for global dominance of Chinese currency by establishing a gold standard.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

C767f03aeb282b9660d8157840047228

or something like that. Anyway, we plan to invest heavily in gold and other precious metals, and real estate. Possibly some Chinese or other foreign currency.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

C767f03aeb282b9660d8157840047228

It is a bit scary to me but my husband is a careful researcher and has done great in the stock market, so if he thinks it's a good idea to get away from it, I tend to trust his judgment.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

C767f03aeb282b9660d8157840047228

I thought you guys might be interested to learn more about the idea. It's all fine under the IRS rules, but precious metals for example have to be purchased in physical form. So we have an account with Swiss Metals for that purpose.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

C767f03aeb282b9660d8157840047228

Of course I should point out that my husband recently retired, so makes no contributions to the employer-provided 401k.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

C767f03aeb282b9660d8157840047228

I continue to contribute to my 401k through my employer. Mine is comparatively small because we chose to maximize his account in the last few years before he retired.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

5f13389fd6ea4b6de49bacec84ed7d8f

Doc,,, Any instrument that gives you more investment flexibility is a good thing. It sounds like hubby subscribes to my favorite investment rule. Buy what is on sale. We may have a different take on China. I believe their continued success depends

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

5f13389fd6ea4b6de49bacec84ed7d8f

greatly on how they deal with their debt. They have an incredible amount of local, and regional debt that is ultimately guaranteed by the national govt. Compound that with their need for a currency that keeps them competitive in the world market.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

5f13389fd6ea4b6de49bacec84ed7d8f

All in all, I can find little reason to invest in the Yuan.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

C767f03aeb282b9660d8157840047228

I agree Chinese currency may not be the way to go. For us, resources are going first with precious metals, particularly gold ...leave the rest in US currency for purchase of real estate investments to come a bit later.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

C767f03aeb282b9660d8157840047228

Those are our only firm plans for the short term; with the offshore account it is very easy to buy and sell currencies. Hubby now pays attention to the global currency situation and will continue to observe for a couple years.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

C767f03aeb282b9660d8157840047228

To me one of the best features of the IRA LLC is that we can take any payments from it at any time we want. We don't have to start then keep taking payments.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

C767f03aeb282b9660d8157840047228

Since we don't actually need to rely on the 401k for monthly income (even after I retire), it's a great benefit to avoid paying unnecessary taxes.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

C767f03aeb282b9660d8157840047228

Here is the scary part for me: if he dies and leaves me in charge of the thing. I am clueless about investing and I hate dealing with money! I am that person that puts the money in the 401k because I'm told it's the thing to do...and then I pay no

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

C767f03aeb282b9660d8157840047228

further attention to it. At all. As long as I have money in my checking account I pay my bills (my credit score is golden) and that's the extent of my financial sphere.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

C767f03aeb282b9660d8157840047228

If it weren't for hubby I'd be a financial wreck. He takes care of those things like I am a child. I am grateful but I sure hope he lives a long life.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

5f13389fd6ea4b6de49bacec84ed7d8f

Doc,,, If that were to happen, you need ro remember one word.... fiduciary. That is the only word that matters when searching for an investment advisor. I'm sure you know the definition. Paying someone to manage your money is no different than paying

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

5f13389fd6ea4b6de49bacec84ed7d8f

for any other service that you can't provide for yourself. You just want to make sure that the advisor is looking out for YOUR interests.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

5f13389fd6ea4b6de49bacec84ed7d8f

Btw,,, I assume hubby knows that you can roll a 401 into several different accounts. Maybe part offshore, part into a btokerage account, part to purchase an

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

5f13389fd6ea4b6de49bacec84ed7d8f

annuity. It's all availabe. It just depends on your circumstances.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

C767f03aeb282b9660d8157840047228

I think he is aware jc, this is his opening shot if you will...his first priority is exiting the US. Second is converting a substantial portion of assets to a non-US dollar based vehicle. He takes things as you would expect an engineer to do.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

C767f03aeb282b9660d8157840047228

Methodically, carefully, and with plenty of homework up front and on a continuing basis.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

5f13389fd6ea4b6de49bacec84ed7d8f

OK. I guess if he is convinced that the dollar is doomed, that could be a good strategy. But as long as you are living in a dollar based economy, should you be wrong, bringing your profits home could be painful.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

5f13389fd6ea4b6de49bacec84ed7d8f

A lot of American companies are seeing their overseas profits evaporate due to the exchange rate.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

5f13389fd6ea4b6de49bacec84ed7d8f

Just another reason for considering multiple baskets for your eggs.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

C767f03aeb282b9660d8157840047228

I don't know that you can go wrong with gold. If gold becomes worthless, our problems will be far worse than worrying about extra retirement income!

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

5f13389fd6ea4b6de49bacec84ed7d8f

At today's price you're not going to get hurt too badly. But gold is just like anything else. It has its ups and downs. Four years ago it hit a high of $ 1900. And a lot of people anticipated a price over 2k. Today it sells for $1189.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

5f13389fd6ea4b6de49bacec84ed7d8f

Tell hubby to try this on paper. Pick a stock with a beta over 1. Determine its trading range. Throw 10k at it when it is on the low end. Sell it anytime he earns 1% profit. Repeat.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

5f13389fd6ea4b6de49bacec84ed7d8f

By following just a few equities, it's pretty easy to do this once a week. My 19 yr old son put me on to this game two years ago. Last year he turned a 56% gain with his college fund.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

6c48fb73634fa41fe7915a7faf370ee7

That's good advice, you'll find you collect that 1% quite frequently make sure you find a nice boring stock during a nice boring market

Mr. Pink @ over 2 years ago

Strongsville, OH, USA

6c48fb73634fa41fe7915a7faf370ee7

One more thing when it drops 1% sell it. It's still a 50-50 bet no matter what you do.

Mr. Pink @ over 2 years ago

Strongsville, OH, USA

5f13389fd6ea4b6de49bacec84ed7d8f

My son has gotten some great returns using a trailing stop. it takes some practice but it's worth the effort.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

C767f03aeb282b9660d8157840047228

Well remember, I am not necessarily out to make more...priority is to prevent undue loss. Many experts are predicting another major downturn next year in the US and possibly the global economy. Also hubby says that the Chinese will attempt to get

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

C767f03aeb282b9660d8157840047228

the price of middle eastern oil pegged to the Yuan instead of the dollar...which will become an attractive option if they instate a gold standard.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

5f13389fd6ea4b6de49bacec84ed7d8f

I can see China campaigning for Yuan based oil contracts. But the chances of them instating a gold standard for the Yuan is so remote that it doesn't deserve discussion. Of course, that's just my jaded opinion.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

C767f03aeb282b9660d8157840047228

That last part was editorializing on what he told me. Obviously I shouldn't go there. Nonetheless, our disdain for China may well be blinding us to their plan, of which the ultimate goal is certainly world economic dominance.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

C767f03aeb282b9660d8157840047228

If you wanted to achieve that, in the current economic climate, what significance would you assign to buying up massive amounts of gold - which the Chinese have done and continue to do? Anything besides the usual investment purposes?

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

C767f03aeb282b9660d8157840047228

I am not trying to pick any fights and I happily admit any assertions I may make have zero merit. I am just interested in your opinion. I find the gold-hoarding stuff scary.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

5f13389fd6ea4b6de49bacec84ed7d8f

The gold hoarding makes perfect sense. Their goal is the same as yours. Capital protection. There is also a chance they may try to set up an intermediate currency for trade with some regional countries. That could be a gold based currency.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

5f13389fd6ea4b6de49bacec84ed7d8f

But a gold standard for the Yuan would remove their ability to control the exchange rate. That, in turn, would take away the export advantage they now enjoy. Given the fact that their entire economy is based on the export surplus, they would be

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

5f13389fd6ea4b6de49bacec84ed7d8f

committing economic suicide. I believe the gold is their way of protecting their economy from a meltdown if/when their internal debt practices hit the fan. They've dug a pretty deep hole. They are now making changes that may remedy the problem.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

5f13389fd6ea4b6de49bacec84ed7d8f

They also have made close to a trillion dollar commitment over a decade to clean up the mess they've made with their growth at any cost policy. All in all, they are heading in the right direction. Corruption is down, they are converting to approved

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

5f13389fd6ea4b6de49bacec84ed7d8f

accounting practices, they have even begun to relax mandated growth requirements. But there is no doubt on my mind that if there is another meltdown, the safe haven for the world's riches will not be China.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

5f13389fd6ea4b6de49bacec84ed7d8f

It may very well not be the US either. But, we have a proven track record. They don't.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

C767f03aeb282b9660d8157840047228

ok I think I understand better now. Thanks. I see improvements in Chinese willingness to enforce intellectual property and have some understanding regarding their infrastructure changes, specifically clean tech stuff. But how that relates to

Dr. Evil @ over 2 years ago

Downtown West, Minneapolis, MN

C767f03aeb282b9660d8157840047228

their economic position and ambitions is not apparent to me...it's such a narrow slice of the picture even if it is representative.

Dr. Evil @ over 2 years ago

Downtown West, Minneapolis, MN

5f13389fd6ea4b6de49bacec84ed7d8f

It's hard to wrap your head around the total interconnection of govt with evetything. I'm constantly amazed by the communist capitalism model.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

125e03ff143e887a8bee577895339921

I'm about to dive back into real estate as an investment.

Racer X @ over 2 years ago

Winder, GA 30680, USA

125e03ff143e887a8bee577895339921

I got out in 2006, and have been hesitant to reenter the market.

Racer X @ over 2 years ago

Winder, GA 30680, USA

5f13389fd6ea4b6de49bacec84ed7d8f

Residential or commercial?

jc @ over 2 years ago

6c48fb73634fa41fe7915a7faf370ee7

Do you take section 8? No ma'am I'm sor-CLICK!!

Mr. Pink @ over 2 years ago

Strongsville, OH, USA

C767f03aeb282b9660d8157840047228

We had a section 8 renter. Best deal ever. Guaranteed rent check on the same day every month.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

C767f03aeb282b9660d8157840047228

We also started investing in colored diamonds. All cracks about racism aside.

Dr. Evil @ over 2 years ago

Lakeland, MN, USA

125e03ff143e887a8bee577895339921

Residential

Racer X @ over 2 years ago

Summerville, USA

5f13389fd6ea4b6de49bacec84ed7d8f

I assume you know the pros and cons. Just remember that getting out is more expensive now.

jc @ over 2 years ago

Yellow Springs, OH 45387, USA

125e03ff143e887a8bee577895339921

You know what happens when you assume.

Racer X @ over 2 years ago

Summerville, USA

125e03ff143e887a8bee577895339921

I've had success in the past. I'm just trying to diversify my investments. My IRA is doing well, but I'm not a savvy enough follower of the stock market to trust myself to manage it.

Racer X @ over 2 years ago

Summerville, USA

125e03ff143e887a8bee577895339921

I like tangible assets. I grew up on a farm, and I like the concept of owning land. Real estate makes sense to me.

Racer X @ over 2 years ago

Summerville, USA

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