My Family's Retirement Fund

[Sentinelrv]

My family invested in mutual funds for retirement that aren't FDIC insured, and it already lost about $46,000 because of what's been going on in the economy. They want to go talk to the bank (Wachovia) about what they should do, but I don't trust these bankers, especially after learning about the Federal Reserve.

I don't want them to lose anymore money, and I'm not an expert on these subjects, so I thought who better to ask than people who study Ron Paul's economic policies. Anyway, what would you suggest they do based on what you guys know? If they take the money out, they get a $9,000 penalty. Should they leave it in? With the way the government is taking action on our problems, (The Bailout) I only expect bad things in the future, so I don't think this is a good option, but that's why I'm asking. Or do you guys suggest something completely different? Let me know if you need more information. They operate a motorcycle business by the way, just in case it's relevant.

 

[Truth Warrior]

I think that the Feds FINALLY found a solution to the impending Boomer retirement threat. Of course it's over priced and half assed. No surprise there.

 

[dannno]

They can put the money in a secured CD without taking it out and being penalized. That way they won't lose any more money.. but the money will lose value if there is massive inflation.. But keeping it in mutual funds, they will lose money and value.

There are mutual funds that focus on precious metals. There's also PRPFX which has precious metals and swiss francs. There are also COMEX stocks like GLD and SLV. Ron Paul has most of his money in gold and silver mining companies like NEM and MVG. If there is hyperinflation, the metals will go way up in value. If COMEX can't make their delivery in December, they will go way up in value.

 

[LibertyEagle]

That's a tough one and I don't think anyone has the answer. All I can tell you is what I did. I invested my IRA in physical gold and silver.

One thing you might want to have them do is to talk to someone at Peter Schiff's organization, Europacific Capital.

 

[dannno]

One thing you might want to have them do is to talk to someone at Peter Schiff's organization, Europacific Capital.

Ya, the OP mentioned that his family wants to call Wachovia and ask them.. ehhhh.. I have received a lot of really bad advice from financial institutions in the past, and I have heard of many others with the same experiences.. I find that they just tend to spew the same crap coming from the mainstream media. Peter Schiff's organization, however, I would trust.

 

[Sentinelrv]

This is the website where I would ask them?

http://www.europac.net/

 

[LibertyEagle]

This is the website where I would ask them?

http://www.europac.net/

Yeah, they'll hook you up with someone to talk to.

FWIW, I didn't sync with the first guy I talked to, so I ended the conversation and called back for someone else. I really liked the guy I talked to in New York.

 

[Matt Collins]

I produce a radio show for a good friend of mine who is a multi-millionaire. You should see his house. Anyway seriously he has made all of his money through investing and investment advising.

Check him out - he also has educational videos on his site and he knows his stuff. Graduate from Univ of Chicago in economics. Him and I don't always see eye to eye, but that doesn't mean he is wrong. www.PaulWinkler.net

 

[Matt Collins]

I don't want them to lose anymore money, and I'm not an expert on these subjects, so I thought who better to ask than people who study Ron Paul's economic policies.

Make sure the portfolio is setup properly with the right asset categories. Chances are a bank won't do that for you. Go see an independent investment adviser who doesn't sell anything other than his time. This way he isn't tied to selling a product or commissions. Again, my good friend does this and I trust him... www.PaulWinkler.net

 

[Matt Collins]

They can put the money in a secured CD without taking it out and being penalized. That way they won't lose any more money.. but the money will lose value if there is massive inflation..

Yes, CD means certificate of depreciation.

It's ALWAYS a good time to be in the market if you know what you are doing.

 

[Kludge]

Unless they're over 55, keep it in the funds! They may want to start putting their income into gold henceforth though, so that when the market is near the bottom, they can gobble up the cheap funds.

 

[angelatc]

Unless they're over 55, keep it in the funds! They may want to start putting their income into gold henceforth though, so that when the market is near the bottom, they can gobble up the cheap funds.

Exactly.

 

[pinkmandy]

Why are people still supporting these big banks?

 

[LibertyEagle]

Unless they're over 55, keep it in the funds!

Stay in the funds, or stay in the IRA? Depending upon the specific funds that they are invested in and the age of his parents, staying in those same funds may not be the wisest thing to do. Or did I misunderstand you?

 

[LibertyEagle]

It's ALWAYS a good time to be in the market if you know what you are doing.

Well Matt, a whole lot of very intelligent people have lost a lot of money in the market lately. Including Peter Schiff, although he probably has one of the better strategies that I have heard.

 

[Brian4Liberty]

Why are people still supporting these big banks?

Never do business with big banks or brokerages. For "safer" retirement (or near), try CDs at a credit union. For other investing, use a low-cost (discount) brokerage like Vanguard, ScotTrade or TD Ameritrade. Diversify. Dont put all your eggs at one brokerage or one type of asset. Only invest in low cost, no-load mutual funds or ETFs. Don't invest with insurance companies (annuities). Right now is a good time to dollar cost average. Don't jump all in to anything.

 

[Matt Collins]

Well Matt, a whole lot of very intelligent people have lost a lot of money in the market lately.

Then they are not doing it right. You MUST be diversified, and you MUST be in it for the long run.

 

[angelatc]

Well Matt, a whole lot of very intelligent people have lost a lot of money in the market lately. Including Peter Schiff, although he probably has one of the better strategies that I have heard.

Doesn't mean it is a bad time to be in it. Just means it's a bad time to get out of it. Anybody with half a brain knows that the market tanks every 10-15 years or so. That's why people should move their money out of stocks as they approach retirement age.

I've lost unrealized profit, but I am still ahead on a long term basis. It will come back, it always does.

 

[LibertyEagle]

Then they are not doing it right. You MUST be diversified, and you MUST be in it for the long run.

Interesting that you say that. Wasn't it you that was remarking how you wanted to go back to college for a second BS, but didn't have the money, in another thread?

 

[Truth Warrior]