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Gold IRA: Smart retirement investment or not?

With the current government shutdown, economic market conditions, and fear of inflation, many individuals are searching for answers when it comes to protecting their retirement savings. This is a question that few people have the answer too.

Why? Because financial experts and wealthy individuals are keeping these answers to themselves in fear of a increase in demand and shortage in supply. They understand the value of these assets in times of turmoil and collapse.

Luckily, we have discovered their secret: Physical Gold & Silver!

Before it was literally impossible for regular individuals to capitalize on obtaining precious metals, but luckily with the invention of the self-directed IRA, it has became a reality.

Protect Your Retirement with a Silver & Gold Backed IRA

The fact of the matter is, if you currently have an IRA or 401(k) that is purely locked into one asset class, most likely mutual funds, you are in dire risk of losing all of your hard earned savings from things like currency devaluation, inflation, or even the government taking your money in an effort to pay down the rising $18 trillion debt deficit.

Luckily, you have the ability to change the outcome by doing a simple IRA rollover to add diversification to your retirement account by adding precious metals. We explain how to do this below in 3 simple steps.

What is a Gold IRA?

A gold IRA works in the same capacity as your current IRA or 401(k), only these accounts allow you to hold precious metals like gold, silver, and palladium in the account for diversification.

This is important because your entire retirement will not be based off of just one asset class. It allows you to hold gold coins or bars that are approved by the IRS.

These precious metals are normally stored in a depository like Brinks or the Delaware Depository for your safety.

You will also have the flexibility to decide how much of your retirement is invested in these precious metals and can continue to add more overtime.  This vehicle allows regular people to participate in one of the investments of the wealthy.

What is a Self-Directed IRA?

The way that a gold IRA account is established is through an account called a self-directed IRA. This type of account gives the IRA account owner more control over the investment decisions on behalf of the retirement plan.

Investments such as real estate, precious metals, bonds, stocks, and mutual funds can be held under this type of account. IRS regulations require that either a qualified trustee, or custodian, hold the IRA assets on behalf of the IRA owner.

A “Tax-Free/Hassle-Free” IRA Gold Rollover

Our chosen IRA custodian that we recommend in the IRA rollover process is Goldco.  This company continues to exceed the expectations of it’s customers by maintaining a 5 star rating with the Better Business Bureau, 5 star rating with Trustlink.org, and making the Inc. 500 List as one of the fastest growing companies in the financial services category. Their customer testimonials on their website solidifies all of these great accomplishments.

Even if you have a 401(k), 403b, 457b, annuity, or pension plan, you still qualify for a tax-free gold IRA rollover, which is a tremendous value since you won’t be losing any of your savings to taxes. All it takes is speaking with a IRA specialist, by clicking on this link here or by calling the 800 number on the website or simply filling out the form on the right with your Name, Email, and best phone number and you will be contacted within 24 to 48hrs to answer any question that you might have about the process.

Which accounts are Eligible for Rollover into a Gold IRA?

The accounts below are all eligible for a gold IRA rollover:

  • Roth IRA
  • Traditional IRA
  • SEP
  • 401(k)
  • 403(b)
  • Some annuities
  • Pension plans

(Others may apply, please speak with a Goldco account representative)

10 Reasons to Invest in Gold

  1. portfolio diversification
  2. inflation hedge
  3. currency hedge
  4. risk management
  5. supply constraints
  6. history of maintaining its value
  7. deflation
  8. geopolitical uncertainty
  9. increasing demand
  10. tangible assets

Just What is Gold’s Projected ROI?

Let’s say you had invested $33,000 in a gold IRA in 2002. Flash-forward eleven years, and your account value would have peaked somewhere around $200,00 in today’s standards! Not too shabby!

 

What Types of Coins Can be held in a Gold IRA?

There are only certain types of bars and gold coins that can be held in your IRA account based upon regulations set by the IRS. For a full list of all IRS approved metals, see below.

Below is a list of some of the most popular coins and bars recommended for IRA accounts:

  • American Eagle Gold Coins
  • Canadian Maple Leaf Coins
  • American Buffalo Gold Coins
  • Austrian Philharmonic Gold Coins
  • PAMP Suisse gold Bars

The fineness requirements for metals are bulleted below:

  • .995 gold
  • .999 silver
  • .9995 platinum
  • .9995 palladium

(Note: IRA custodian cannot buy or sell metals from a disqualified individual (you, spouse, family members)

How long should I keep Gold in my IRA?

Each situation is unique and should seek expert financial advice to determine how long you should hold gold. Usually gold is seen as a long-term investment, but it is important to understand that every investment comes with associated risks. Market and economic conditions can also influence the decision of how long gold should be kept.

Where is the Gold in my IRA Stored?

Depending on what IRA custodian you choose, it will be either held at the Delaware Depositary or Brinks Storage.

How do I liquidate a Gold IRA account?

The great part of a gold IRA account is the fact when you start taking distributions out of your plan you can either take physical possession of your metals or liquidate them for cash.

This is a tremendous value and great option to have when you plan on making withdrawals from your account.

Why Goldco over any other company?

Why should you choose Goldco over other companies?  Two things, experience and asset preservation.

1. For the target clientele of IRA custodians such as Regal Assets, experience in handling IRAs is most important consideration since these entities would be handling funds that will support them in their retirement years. Asset preservation is understandably the other important concern. Given the continued volatility of the financial markets, safe havens that ensure asset preservation are what most, if not all future retirees want.

2. It is clear that Goldco checks all the boxes as far as these considerations are concerned. They have the longest experience in the field of gold IRA’s and gold IS the ultimate safe haven. On the basis of the requirements presented above, Goldco is in fact the only choice for those who wish to move their IRAs into gold.

Should I Rollover My 401k to Gold

Every year, those of us who are ready to retire find ourselves facing various changes in the world of finances, forcing us to make unexpected decisions. One of the main issues we face is what we are able to do with the money that has built up in our 401K plans while we were working.

Most of us are told that we should rollover our plan and turn it into an IRA (Individual Retirement Account). However, this may not be the best option in all cases, since you have other possibilities as well.

Let’s take a look at these possibilities and what their pros and cons are.

What Are Your Options?

Let’s take a look at the options that are available to you. As with any investment plan, your personal circumstances will play the biggest role of all. Hopefully, by being aware of the options out there, you will be better equipped to make that decision.

1. The Rollover Option

The rollover option is the most common. This is because it gives you the freedom to choose your own investments. By rolling over into an IRA, you can invest in anything you like, from real estate to stocks and bonds. 401K plans tend to be quite limited in terms of what you can invest in, which makes it quite interesting to do a gold 401K rollover instead.

Another benefit of rolling over to an IRA is that your heirs will have more options in terms of having the plan paid out. As the owner of the IRA, you can withdraw money whenever you want or even liquidate it. IRAs also have greater protection from creditors, up to a limit of $1 million.

If you want to, you are able to do a straight 401K to gold IRA rollover, which is known as a self-directed IRA. This also means that when you turn 70.5, you are exempt from the RMD (Required Minimum Distribution).

2. Leave Money in the Plan

Staying in a 401K plan is restrictive, but it does offer some advantages. Mainly, you can leave your assets in one place without them being taxed.

However, you do have to consider just how limited your investment options actually are. On the other hand, if it has always performed better than other plans on the market, then there should be no reason to leave.

Additionally, your 401K is also almost fully exempt from creditors. Hence, you could declare bankruptcy with several million in your 401K, without your creditors being able to lay claim on it. Indeed, only the IRS can attach itself to the money within your 401K.

3. Convert 401K to Gold

The final option is to convert to a 401K gold account. In all of history, precious metals such as gold have held their value in a stable manner. Indeed, gold and silver were long used directly as currency.

Even our country remained on the Gold Standard until very recently, which meant that the value of the dollar was directly linked to the value of gold. Now that we have left the Gold Standard, our dollar’s value is linked to market confidence in the currency and the belief that the value depicted on the notes will actually be paid out.

This means that there is a stronger potential for a full financial crash, or hyperinflation. Precious metals, on the other hand, will always keep their value, as it is classed as “intrinsic” in value. This is because it will always be attractive to use and it will never be easy to mine or get your hands on.

Related Topic: Some Basic Things You Should Know About the Roth IRA

In every economic meltdown that has been experienced, investors have looked to gold in order to ensure their savings are protected. Additionally, gold has been raising in value recently. It resists inflation and becomes more valuable whenever the markets are declining.

Additionally, over the past decade or so, it has provided a very solid return. Naturally, there is always some fluctuation in value, but nothing as significant as what can happen with currency. If you decide to convert your 401K to gold, you know that you will always have significant stability, regardless of what the rest of the economy is doing.

You will always be protected against hyperinflation, meaning that you know your retirement fund will always be waiting for you. Finally, precious metals always have great returns.

Nevertheless, there are some downsides to a gold IRA. The primary one is that it can be quite expensive to run one. However, if you know how to do your research, you should be able to find a company that can manage your account in an affordable and proper manner.

Early 1960′s Recession

APRIL 1960 – FEBRUARY 1961 (10 months)

The Early 1960s recession, also called the Recession of 1960, was yet another chapter in the modern economic cycle that has shown its ugly side so many times to the U.S., as well as to the world. This recession was characterized by, once again, astronomically high unemployment rates, incredibly high inflation, and a bad Gross National Product rating.

These all worked together to cause consumer confidence in the system to plummet, and caused a downward spiral to develop that swallowed many businesses. This in turn caused unemployment to rise, and so the cycle began again.

What ended the recession was the call President Kennedy made on January 30 of 1961 to increase government spending to improve the Gross National Product. This helped reduce unemployment, helped bring back confidence in the economy, helped out many businesses, and helped the recession to come to an end that very year.

Early 2000′s Recession

MARCH 2001 – NOVEMBER 2001 (8 Months)

The Early 2000s recession took place in the U.S. for a number of different reasons. One was the collapse of the dot.com bubble. A false high, created in the initial, money-making wave of the internet that swept the world, finally came crashing down to a realistic level.

Also, the September 11th attacks made against the Pentagon and the World Trade Center Towers caused a huge stir among Americans. Although Americans rallied and stayed positive through the whole thing, the economy took a hit as people stopped spending money.