Self Directed IRAsSubmitted by Knah Nedraer on Tue, 02/05/2013 - 20:00
In light of the recent posts suggesting DPers cash out their 401(k)s to avoid a potential government take over I am interested in Starting a discussion about Self Directed IRAs.
There are # of pitfalls to cashing out a 401k - the big one being the tax and penalties which could essentially be giving 50% or more of your retirement over to the government. I am trying to find a solution that does not involve taking a massive penalty and tax yet perhaps minimizes the risk of a government take over.
Taking a 50% hit is one thing if your 401k balance is $20k, but as it gets to be ten times that or more one really needs to think through these things.
I am currently leaving my employer of 8+ years and will be rolling my 401k over to an IRA. I recently learned about self directed IRAs that allow for a bit more control and investment options. Options like real estate and bullion.
What do you all see as potential risks for Self Directed IRAs?
How do you see perhaps Self Directed IRAs offsetting some of the risk associated with a government take over of IRAs and 401(k)s?
I would be happy to post a link of a company I am considering using, but I don't want to appear to be pushing a particular company. One option i like is that they will store the bullion outside of the U.S. In this case the location would be Hong Kong I think.
Hope to hear some good thoughts from the DP community.