Posts Tagged ‘IRA-LLC’

Why Gold Went Up Now With The Feds QE3 – What This Means For Self Directed IRAs

Sunday, September 23rd, 2012

This past week the Fed announced that it would engaged in a continuous stimulus program from now through 2015 due to the continued weak and anemic labor market. The Fed committed to a monthly outlay of $40B to purchase mortgage backed securities. the theory here being that this will help stimulate housing and subsequently the labor market.

We’ve been hearing and talking about QE3 all summer. Despite the fact that we all knew and understood that QE3 was coming, gold moved sideways in the $1500 to $1600 territory, for weeks. Now, just before QE3 is announced, gold spikes up past $1700 and into the $1750 range.

What’s going on here?

Not to be one to engage in conspiracy theories, buts its almost as if there is insider information being passed around. We’ve known for weeks there would be some sort of Fed action. We did not have any really significant economic news, yet, gold is up suddenly.

Its our theory that there are insiders that do get a glimpse as to what is coming. More specifically, such inside information clearly bodes well for metals.

Self Directed IRA Actions

Metals have definitely shown the next new bull leg. QE is here to stay. The government has not fixed one single problem in our country. The American electorate can’t clearly see that their current president has not delivered, yet the think that they may still want to vote for him despite his inability to deliver tangible results. Based upon this the risk is on. We see nothing positive coming from the government and maybe not the presidential election. Dr. Ben is printing like mad. the dollar will continue to be debased and lose value. Inflation will continue to creep into our lives.

We still have a buy and hold action for gold and silver in your self directed IRA. We recommend holding physical gold and silver for the ultimate hedge and protection with your self directed IRA.

US Trade Policy And Its Impact On Self Directed IRAs

Sunday, September 9th, 2012

As you listen to the political theater that came from both political party campaigns, these last two weeks, you can’t help but ask the question “where are your real solutions?”.

We hear both candidates talking about jobs. But really? You, the government can create jobs in the private sector? We never heard one single solution or set of tasks or activities that either candidate would implement that they could tangibly demonstrate could or would create jobs and prosperity. In fact, if we look to the current administrations track record, their attempts at creating jobs have failed miserably.

Now, lets consider US trade policy by this administration as well as those of Bush and Clinton. We now have what we consider a free trade policy. The argument put forth by the Clinton administration was that we need to have a policy that opens doors to foreign markets. This allows US manufacturers to sell their goods into those markets. This also provides cheaper goods back to the US consumer. The theory being that the US companies will hire more US workers to support their operations in foreign markets, as well as dropping the costs of goods in the US markets. Sounds like a win-win scenario.

However, the reality does not seem to support the theory. What we have actually seen happen is that the US has, since the Clinton era, ran massive trade deficits. The American worker’s wages have not kept pace with inflation. We saw a major economic bust right at the end of the Clinton administration. We’ve seen American manufacturing move offshore, and we have not created net new jobs.

Why is this happening?

We’re not here to beat the drum for American jobs, protectionism, or some socialistic economy. What we are pointing out is that what our government’s trade policy has accomplished or failed to accomplish. What we managed to accomplish is that we opened up our doors to cheap goods from from foreign countries. Foreign countries have the access to the same technology, education, information, and capital as we do in America. The only variable between us and the foreign country is the cost of labor. That clearly gives them a competitive advantage that we do not have here.

We hear the President proclaiming that we are going to bring back American manufacturing, and American jobs, but the reality is that those jobs are never going to come back with our current policies. We have deliberately implemented a trade policy that puts us on an unequal footing with 3rd world countries. How would you ever expect us to be competitive with someone that make less than 10% of what an American worker makes? the short answer is you won’t. My personal experience from a prior life in manufacturing management and consulting is that America has moved manufacturing offshore, closed US plants all in an effort to reduce cost. American companies were and are in a competitive dog fight with foreign goods. The US based companies more often than not have shareholders and are driven to earn a profit for their shareholders. That’s their reason for existing. So, its only natural that these companies look for lower labor costs in order to keep their goods price competitive with the foreign goods being imported.

The heart of the problem

The crux of the issue lies in how we define the purpose of an economy. Are we here to serve the economy, or does it serve our society? The second part of the issue is are economies suppose to serve their society or country or nation, or do nations, and societies not matter and its just one big global pot?

Let’s deal with the second question, first. If we value the concept of nations, countries, regions as being the highest level of our society or community, then the economy would be defined relative to that construct. If, however, you really say that we live in a global community, then the country is out the window, and there really is no economy or purpose for it. What we have is a free for all, and policy, borders, and countries do not matter. Therefore, you have to compete directly with the person making $2 per day living in a dirt floor hut.

The answer to the first question is that the economy is designed to deliver wealth and prosperity to its participants. Therefore, if you live in the US, then the US economy is designed to improve the lives and prosperity of Americans, not the Chinese, or Indians.

So, if you buy into the precept that the United States economy is here to serve the people of the United States and the objective is to improve the overall wealth and prosperity of American, then you have to have trade policies designed to do just that. Today, we do not have such policies and we are not going to see jobs and economic prosperity and improvement with the current policies of our government.

What does this mean for self directed IRAs

Ok, so we may have gone the long way around the barn, but the issue is clear. The political theater that you see come from the President or Mitt Romney are just that — theater. There are not any solutions being put forth, and there is no indication that either party or candidate will implement anything that will address our economic woes. This is why you have seen massive QE from the Fed and why the price of metals will continue to increase. The printing of money is the only way that the government can deal with our problems. Its because of this that we still recommend that people maintain a good, healthy position in precious metals held in their self directed IRA.

We are also advocating that you continue to look for self directed IRA investments that get you away from the markets and into hard tangible assets such as real estate or investing in small businesses that you know and understand or have some control over.

Disclaimer: The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.

What The Lastest CPI Numbers Mean For Self Directed IRA

Wednesday, August 15th, 2012

The latest CPI numbers show that overall prices increased 0.05%. However, what this fails to acknowledge, and what the rest of us that live here know is that gas prices were up more like 7% in July. But, when we look at the infamous government figures the should be showing an increase of 0.24% vs. the 0.05%.

What does this tell us?

This tells us that the government is dealing with inaccurate, no-real figures when they set fiscal policy. This means that the US citizens have been and will continue to feel the pinch and pressure from failed economic policies for the foreseeable future.

What does this mean for self directed IRAs

Self directed IRAs continue to be a key retirement strategy for building your retirement. Self directed IRA investors are investing in hard assets and assets that are out of the direct control and manipulation of Wall Street and Washington. If you currently hav a self directed IRA, our current recommendations are to continue to look for and invest in rental properties. We are also advocating holding precious metals as the currency debasement and potential for more printing and dumping of the US dollar still has real potential.

Disclaimer: The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.

Crowdfunding And Self Directed IRAs

Tuesday, August 7th, 2012

For all of our recent memory and experience, its been illegal to solicit people or investors for investments into any business. This investment space has been relegated to the few that dwell on Wall Street and associate with the right people.

As most of us have learned from the 2008 meltdown, we are mere mortals and at a great disadvantage to Wall Street. However, there is hope.  Recently Washington has approved what is known as the JOBS bill which would make it easier for small companies to solicit and receive investments from private investors. This concept is based upon a concept known as Crowd Funding.

Crowd funding initially started as  a way for small companies to solicit investment by giving away generous amounts or products or services in exchange for money. The so called investor never receives any equity or ownership or any other paper. Instead they are at most receiving goods or services. This gets around the securities laws.

However, with the recent economic meltdown, and dismal, non-existent recovery here has been a push to make private, small business investing less restrictive and easier. This push has led to the JOBS act. The JOBS act attempts to allow small, non-accredited investors, to invest 10% or $10,000 in a private offering. The solicitation restrictions for the business would be removed. There would be a exchange platform in which the offeror would register. The investor can view and qualify the offeror. From there they can choose to invest.

What this means for self directed IRAs

The above discussion is brief at best, but it gives you a taste for what is going on. When this law becomes effective in 2013, it will open a whole new world of investment opportunities for self directed IRA investors.

How June Jobs Numbers Will Impact Your Self Directed IRA

Friday, July 6th, 2012

Well, the June 2012 jobs numbers are out and they are terrible, as expected. There were on;y 80,000 new jobs created. May was revised upwards to 77,000 from the initial 69,000. Overall, the unemployment rate is steady at 8.2%.

The numbers are starting to reinforce the a pattern that will become statistically significant. The implications being that the employment picture has never really improved in a significant way for 4 years, but it may actually be worsening. One of the key components that unemployment has not and does not capture are the under employed and the stagnant wages, relative to inflation. This is the unreported story.

What this data is pointing to is that jobs are not getting better, wages are not maintaining pace with inflation. We are starting to see signs consumers are reducing their spending which is causing some price deflation. At some point in time, soon, we will likely hit that tipping point where the markets finally see the problem.

What this means to your self directed IRA

We are seeing a storm developing that is made up up more money printing, flat to down consumers spending, and potentially hyperinflation. The hyperinflation will likely manifest itself when all of the money starts finding its way into the hands of the consumers and businesses. This is a sign for investing your self directed IRA in precious metals and real estate.

So, check your self directed IRA portfolio and determine if you are properly invested.

Disclaimer:
The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.