Episode-327- Listener Questions for 12-01-09 — 17 Comments

  1. Just ordered the DVD from Backyard… I remember posting a notice on the forum awhile back regarding a workshop they were putting on (Austin area).

    Looking forward to seeing the DVD.

  2. One way or another, whatever is taken from the growing medium, must be returned to the growing medium.

    If you ate the food from your garden, you need to return the micronutrients that were in the food that went in your mouth, BACK to the soil when it comes out your lower openings…

    Compost it first, or use it on compost crops, or something, but “recycle” yourself.

  3. @M Kitchen

    I don’t dislike Chapman as a man, I just think his predictions are complete bullshit and if you check his history you will find that is the case.

    In that video he says in no uncertain terms, cash in all 401ks, IRSs, Whole Life Policies, etc. Put anything you have right now in US dollars into gold and silver COINS, do it now, don’t wait, damn penalties, taxes, etc.

    So do you “like Bob” enough to follow that advice. I find his advice in this video irresponsible. What do you think of this advice?

  4. @Modern Survival

    Well, when I first started listening to him gold was at $600… so in a way I wish I had because I would have doubled my money by now!

    I do remember both Chapman and Gerald Celente (and I think Max Keiser) were predicting similar things over the past year…

    … I always take specific dates with a grain of salt and take a “wait and see” attitude. In this case it seems they were all wrong.

    Taking the long view of history, and plotting the trends, I think his overall advice probably will pan out in the end (even if not on exact specific dates). Of course all my financial investments are in myself and my family, so this stuff is more of a spectator sport for me.

    Still wish I stocked up on that $600 gold…

  5. I’ll take that advice with a grain of salt, and wait for it to dip again… bound to happen. Still, the trend seems to be up, up, up (with the dollar going down, down, down).

  6. I have taken his advice. And spoken with him personally on the phone. And provided “insider” information which has been published, and both times it was done with confirmation from another source, beforehand. You might want to consider the fact that the government likes to use the “trial balloon” method of spreading info to see how it will be received. He has been right far,far more times than most any other financial guy in the business. If you listen to all of what he says, you’ll find that he’s trying to get people out of dollar denominated assets, which are in serious, serious trouble. He has recommended Swiss franc government bonds, Canadian instruments, very few select mining and energy stocks, as well as hard money, AND cash, to have on hand if the SHTF. He also tells people to garden, hunt, store food, acquire weapons and learn how to use them. He’s trying to wake people up! Aren’t there some emotional times on TSP, too? The only business he has is a newsletter; to say he fronts a gold business smacks of tinfoilhattery. And, an ASSHAT??? Well, fine, then I’m one, too.

  7. dude,

    Sorry this asshat just said liquidate your life insurance, 401ks, etc BEFORE January. So what are you going to tell someone that takes this advice in oh say February 2010?

    I will ask you what I asked the last defender, are you going to pay penalties, liquidate your retirement accounts, etc and buy gold coins, are you going to follow this advice which you defend?

    Also please explain how anyone should take this man seriously after two consecutive years of the same prediction about bank holidays in the same months? It looks like he got board and recycled one.

    The man has a batting average of zero.

    I would also like to know what exactly makes you an “insider”? I know you can’t tell use right?

    I swear this insider shit is as bad as faith healers, when the kid it the wheel chair doesn’t walk blame his lack of faith, when time and time again the inside source proves to be totally wrong, call it a trial balloon.

  8. As a matter of fact, I’m up 36% since I started over the last 2 years. How are those Money market and cds doing?

    Why focus on the extreme when everything else is on the money? He wasn’t the only one talking about the bank holiday; there were plenty of guys in the internet media talking about it.

    Since I work with veterans, maybe I’ve heard some things about the sandbox, from guys coming back who don’t really want to spread it around too much. Maybe not exactly “inside” info, but stuff the public should know and will never get unless somebody speaks up. More details on PM if you want them.

    The penalty paid for an early withdrawal is 10%; there is no way possible for the dollar to maintain 90% of it’s value, so why not grab your money and put it someplace safe?

    We have a long way to go. To have just a couple of silver and gold coins is like pissing on a forest fire.

  9. IRT- “Why focus on the extreme when everything else is on the money?”

    Because he has a track record of saying crap like this with hard dates and telling people to take action that would be harmful and he is always wrong when he does it.

    IRT- “The penalty paid for an early withdrawal is 10%;”

    Wow shows what type of inside source you add up to! Holly shit batman so I can withdraw from my 401K an it is only a 10% loss, not a more then 50% loss, wow you must be great at that new math? I guess you can do the same if we cash in a whole life policy? I admit that whole life is a fools investment but once you have it paid up, well, you might as well not loose out.

    IRT- “He wasn’t the only one talking about the bank holiday; there were plenty of guys in the internet media talking about it.”

    Because no one else in either year set a date, claimed an inside source, etc. They said well it could happen, perhaps, may be. Your buddy said it was going to because his “insiders” told him, twice, two years, consecutively.

    IRT- “Since I work with veterans, maybe I’ve heard some things about the sandbox, from guys coming back who don’t really want to spread it around too much. Maybe not exactly “inside” info”.

    Well your insider info is about useless in regard to the economy! No one is more in the dark to what the jackasses in our government are planning than a solider. As a vet I can tell you where the phrase, “the feed us bullshit and keep us in the dark” came from.

    Again a guy that is right most of the time and wrong once in a while, no problems with. But when a person starts running their mouth this way it isn’t about emotion it is one of two things, deception or delusion. I don’t pretend to know the man’s hard and won’t call him a deceiver, but the other option, ain’t much better.

    Since you are his “insider” talk to him, I am open minded, ask him to come on TSP in February of 2010 we can then discuss this latest prediction and at that point past deadline. I will be MORE THAN FAIR but I will want answers and the nebulous trial balloon won’t be sufficient by itself.

  10. Oh and mostly Dude, I focused on this one thing and the others I mention that Chapman said, because that is what I have been asked about.

  11. I said 10% PENALTY, not loss. The LOSS is what we’re trying to prevent. At least get it right if you insist on taking a shot at me. Where you put your bucks in your 401K is what will cause your loss or gain; and there’s not very many ways you can secure a gain in that system. There’s more freedom to do what you want with it outside that system.

    And I’m not talkng about what soldiers are TOLD I’m talking about what they’ve SEEN and had happen to them. I know they’re fed bullshit, gimme a break!

    He’s accessible and on the radio a lot.. why not see if he’ll join you?

  12. Dude, sorry man if you have 50K in a IRA today and liquidate it you will end up with about 25K, you can’t change math.

  13. You seem to be concerned about paying taxes now; you will pay taxes sooner or later!

    I don\’t mind taking some of that now, with a chance to make some serious money, as opposed to being tied down to the crap I have for options in my plan. If you have an account where you can buy almost anything you want, then terrific. Mine sucks.

    God only knows what the taxes will be like in the future.

  14. Jack,

    RE: 401k/IRA taxation

    I’m going to have to correct you on the statement that withdrawals from standard IRAs and 401ks etc is earned income. It isn’t; it is ordinary income. Earned income is basically employment income.
    Yes, both earned and ordinary income are usually taxed at the same rates (currently much higher than long term capital gains rates and reasonably expected to stay this way) but ordinary income is not something that creates a requirement for a fica/social security payment into the system like earned income does.

    I may have misunderstood your point but I thought you were suggesting that we have to pay 7.5% into social security on withdrawals from IRAs. This is just not the case.)

  15. Cohutt is correct and he did not misunderstand what Jack said. The earnings put into a 401K or IRA were taxed for fica/SS prior to being deposited into the retirement account. I haven’t listened to future podcasts yet, but since Jack hasn’t corrected his statements here, hopefully he corrected them in a future podcast.

    Dudekrtr, Chapman’s advice might be good for someone like you with lousy 401K options, but it is atrocious advice for most everyone else. Go back to the original question and Jack’s answer is correct. You’re changing the question and then arguing that Jack’s advice doesn’t fit.

    “you will pay taxes sooner or later”

    But if you have a large retirement account, following your advice will make you pay more taxes. If you make a premature withdraw of $1,000,000 from a IRA you will pay over 50% in taxes and penalties plus state taxes. If you withdraw $50,000 per year during retirement, you may pay as low as nothing or 10% federal tax and it will probably be exempt from state tax. It’s highly unlikely that tax rates will ever be 50% on income as low as $50,000. If rates ever reach that rate they probably won’t last longer than one 4 year presidential term.