Carlos
Lv 4
Carlos asked in Business & FinanceInvesting · 1 month ago

Is 408 (M) a good investment to make on gold and silver ?

I suppose to be a slight investment cousin to the 401 ( K ) but with valued metals 

2 Answers

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  • 1 month ago

    For most people, no.

    There is no such thing as a "408M" plan.  It is just holding the section of the tax code covering Collectables (Gold, Silver, Artwork, Gems, Stamps, etc.) in a retirement account.

    My guess is that the only people pushing this are the people selling the collectables.

  • Anonymous
    1 month ago

    Good in what way?

    Pre-tax retirement accounts have a lot of disadvantages in retirement including being hammered on income tax, possibly higher medicare premiums (because they are based on taxable income) and required minimum distributions.   Roth is almost always better IMO.

    As far as gold for an investment in a retirement account?   That's just stupid.    Gold goes up and down but it never really goes anywhere.  It is not a suitable long-term investment for people who want to grow assets for retirement.

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