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 Replies: 27 / Views: 2,766 |
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Valued Member
United States
411 Posts |
I would really love to hear what people think and advise about the following: I am seriously considering selling my Peace dollars. I have a fine set that's all mint state. I have been told by a numismatist at Heritage that if I consigned them, I could expect to realize in the ball park of $12,000. I haven't stopped collecting. I'm about 50% away from completing a U.S. Type set, and I completed the silver dollars a couple of years ago, so I haven't been paying much attention to them. Now as it happens, I have a son is who is trying to buy a house. He is working 3 jobs to keep the lease current and save for a down-payment that he estimates will be about $10,000. Next August, he will celebrate his 30th birthday, and I thought it would be so cool to surprise him with a hefty check. This is something I could only do if I did one of two things: 1- borrow it against my retirement account (i.e., borrowing it from myself), or 2- sell the Peace dollars (which, incidentally, I have for a long time considered to be an asset for a rainy day. Or year. Or decade.) I love those coins and I am fairly confident that they will at least modestly increase in value over coming years. But I love my son more, and he has increased in value every second since the moment he was born, and I would really like to do something special for him, such as provide the aforementioned down-payment. In these troubled times, I hesitate to borrow from my retirement. So, I'm leaning strongly toward path number 2. If you have an opinion or advice, I'd love to know it. Thanks! |
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Pillar of the Community
United States
1179 Posts |
Wow, this is very nice of you. I'll vote for selling the Peace dollars. You will have a lot more satisfaction when you see the look on his face then you would keeping them hidden in the closet for decades. He seems to be working really hard to attain his goal, this would make him feel even more that it was worth it! I can understand your dilemma though, its hard to sell a set. I think its a better choice then borrowing from your retirement. This is just my 2 cents. Good luck! |
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Pillar of the Community
United States
2189 Posts |
I'm with ceaton on this.What ever you do ,Don't mess with you're retirement account.That money has to last you the rest of you're life.Thats the one thing in life that's meant for you and you alone.
just my way of thinking
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Moderator
 United States
16677 Posts |
Sounds like your son is responsible and is working very hard toward his future. I also vote for #2 as you can always get more coins. Family first  swcoin.ecrater.com
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Bedrock of the Community
United States
20753 Posts |
Not meaning to be nosey but I would want to know a few more things before I make a suggestion. For one thing is your Son married? If so does his wife add to this monitary system? If he is married, what are the wife's family considering? If your son is not married, would a house be what he really wants? To be single and tied down to housework with a house is rather a poor situation. Is he interested in coins? If so he may someday want those coins you are planning on selling. Are there other relatives in your family that could also contribute to his wanting a house?
I was once single with a house and sorry for a long, long time. Massive advantages and massive problems. So this is why I ask those questions. Presently I too have a son that could really use some money. However, although I too love him, he is constantly putting himself and family in wierd monitary situations and I just don't want to get involved. Also, my Son has absolutely no interest in coins so if something happens to me the entire collection would probably end up in a counting machine somewhere.
So to sum up my answer, I'd sure consider all the other options first. Especially other relatives if any.
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Valued Member
 United States
411 Posts |
To just carl: Thank you for your thoughtful reply. My son (Ryan) is single. Sort of. He has a live-in girlfriend that he has high hopes for, and if things progress as they seem to be doing, they'll probably get married. She is a PhD candidate at UT Austin, and will probably end up some kind of teacher. I don't know anything about her family. I just met her last Christmas. I like her very much and I am glad that she makes Ryan happy. Which, apparently, she does.
As his father, I could go on for days explaining why he is the light of my life, but more to the point, Ryan is a very responsible and disciplined person. If they were his coins, my guess is that he would keep them unless and until something came up. But I'd also guess that if he were in my shoes, he'd do the same for his son if he had one and if he could.
He has always shown a genuine interest in my coins, but has not been bitten by that bug. Yet.
And thanks to everyone for your opinions and advice.
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Bedrock of the Community
United States
10982 Posts |
It's great that you want to help your son out Stephen420. My only comment would echo just carl's concern's.
Sometimes a gift of money does more harm than good in the long run. Maybe your son would gain more from saving the money himself and buying a home when he can afford one. Now if he's broke and hungry that's a different story but giving $10K to a 30 year old man for a home might be better spent on college tuition so he doesn't have to work 3 jobs.
Just my thoughts.
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Pillar of the Community
United States
1626 Posts |
Did you ever think of doing both? Maybe you could sell the KEY date coins or partial set for 6k and it would give you the chance to rebuild your set. Just food for thought.
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New Member
United States
7 Posts |
I agree with Tpatna, I think you could contribute half to him.
We are still going through tough economic times, and you may have a rainy day need yourself sometime in the next few years (hopefully not, just saying).
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Pillar of the Community
United States
2661 Posts |
First of all you must look at all the angles of borrowing from your 401K. #1Has it lost significant value over the past year or so? If it has make sure you are not taking a loss when you borrow. #2 You will be paying yourself back at an APR of around 5-6% this is good considering the markets less than stellar performance. #3 In the event the economic situation improves over the next year and the market sees an extended rally that allows it to recapture much of its losses then your 6% gain in interest that you are paying yourself will pale in comparison. How ever if things continue to worsen then it would be a great return. #4 Will you be able to maintain your current lifestyle with the reduced income you will realize each payday as your payments for the loan will come directly form your pay check? a $12000 loan for 5 years would equal to approximately $50 per week automatically deducted from your pay. Now if you sell the coins they are gone forever. You can eventually get new ones. I for one do not advocate selling form a collection, but in this case I think you should sell the coins. Just make sure that as far as the IRS is concerned that you realize as small of a capital gain as possible. In other words if you have not kept records of how much you paid for the coins now would be a good time to think back and start recording that info an a spread sheet. I estimate that you paid somewhere in the vicinity of $11,750 thus giving you a taxable gain gain of only $250  |
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Pillar of the Community
Spain
1361 Posts |
For my son, I will do anything. I would sell the coins, for my collection will in the end be his.
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Valued Member
United States
278 Posts |
The last post makes a good point. If your son has no interest in collecting, and more than likely it will be his in the (hopefully quite distant) future, you might as well let them go. He can't live in the album.
On the same line, now is the worst time to raid the 401K, because if it is like mine, it is way down.
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Pillar of the Community
United States
1840 Posts |
I loathe the thought of selling my coins. I say you keep your coins and let your son stand on his own two feet. Put some of your own money away in the interim. Then when he buys the house, get him a rocking house warming gift like a washer and dryer.
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Pillar of the Community
United States
632 Posts |
I have to agree with snowman. A new washer/dryer set would be sweet!.
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Valued Member
United States
99 Posts |
I'd agree with others that digging into your 401k is a bad idea. Leave that puppy alone.
Selling your coins to help your son is a very generous thing and it sounds like you'd never regret it! If it would actually make the difference for your son between not getting a home and getting it then it might be a great idea. If you're on the fence, maybe you could look into what its worth and if you can get a good price on it, then sell it. I wouldn't just dump it off at a low price to get quick cash though.
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Pillar of the Community
United States
1228 Posts |
Im a seasoned mortgage banker veteran and if you seriously want to help your son talk him out of buying a home 95% of home owners dont understand the complicating guidelines or how to navigate a home loan transaction no offence but bankers have all the angle's figured out and there are alot of them I could be here for years to try and explain them but I dont have the time just a littel heads up for a fellow ccf member
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Replies: 27 / Views: 2,766 |
Posted 04/24/2009 7:37 pm
