Posts Tagged ‘Precious Metals’

How a Gold IRA Improves your Retirement Account

Monday, May 22nd, 2017

Not a whole lot of people know you can invest in gold, nonetheless, invest in gold with a gold IRA. But you can and for some retirement savers, it’s the answer they’ve been waiting for. If you’re the type that likes to invest in commodities or hard assets, then a gold IRA might have what you’re looking for. Here are a few examples of how a precious metal IRA benefits everyday savers like you and me.

Hedging against U.S. dollar

A lot of investors, in times of economic instability, turn to commodities as an investment. The reason for this is that generally, hard assets like gold, oil and natural gas retain their value when the dollar does not.
Usually, gold’s price per ounce rises during inflationary periods, or as consumer prices go up. So as the cost of day-to-day living increase, so in turn does gold’s value. This is how you help protect your purchasing power.

Portfolio diversification

Precious metals historically have a weak correlation to price movements in the financial markets. Especially the stock market, which give you the advantage of avoiding market volatility. Best advice is to get your retirement account solely out of the stock market, with a gold IRA. To place your bets on only one investment type can be dangerous. With foresight and a trusted investment advisor, you can carefully diversify and avoid a potential crisis.

Steadfastness

One of the biggest reasons that investors choose gold and other precious metals is stability. Precious metals get a reputation for being a “doomsday” investment, the type of investments that you make if you’re uncertain of the economic future. There’s a great reason for this. Number one would be that gold has been around for as long as anything else on earth, and it’s still used in our everyday life. Number two might be that there’s a finite amount available, thus making it valuable, just by its existence.

 

Using Your IRA to Invest in Precious Metals: Q&A

Thursday, October 29th, 2015

precious metals img 2

You most certainly do not have to work on Wall Street to know that things have been rocky the last few months for the U.S stock market. It seems that it’s an everyday occurrence that there’s mass hysteria on whether or not the Fed will raise rates, and if you’re like most Americans with an IRA, pension or 401k, you pay attention, because your retirement could be at stake. When the market crashed in 2008, it was said that retirement savers lost $2 trillion in the stock market, and there was nothing that could be done to get those funds back. It left millions of hard-working Americans with depleted accounts and no answers.

Today, I’d like to think that we’re smarter with our money, that we’ve self-educated, and that we now know how to make the market work for us. The answer is diversification. And today, we’re going to specifically talk about diversification with a gold-backed IRA.

Q: What Type of Precious Metals and Coins are Approved Investments?

precious metals

Click to enlarge image

A: Only gold coins that are legal tender with 0.9999 fineness are allowed in an IRA, with the exception of the American Gold Eagle, which has a fineness of 0.9167% fineness. Other gold coins allowed to be put into an IRA include the American Buffalo, Canadian Gold Maple Leaf, and Australian Gold Nugget. The popular South African Krugerrand is not permitted to be included in an American IRA because it’s fineness is only 0.9167%
The regulations that govern gold contributions to IRAs call for a minimum purity of only 0.995%, most gold bullion bars are 0.9999% pure.

Q: Can I Take Distributions of Physical Metal Instead of Cash?

A: Yes, distributions from an IRA can be cash or non-cash. The only issue will be that the distribution will usually be taxable to you (except for a Roth IRA), which would mean that you would either have to liquidate enough metals to pay the taxes, or you would have to use cash from your personal accounts to pay the taxes.

Q: Are There Monthly Storage Fees?

A: Asset value of metals:

fees metals

Q: How is the Metal Held and Stored?

A: Here at Accuplan, all precious metals are stored in our secured vault with Brinks in Salt Lake City. Tax laws require that a licensed custodian hold precious metals for your IRA. All metals are counted and verified upon receipt in the Brinks vault, and you will receive an email notification along with a certificate of ownership when the metals are verified at the vault.

There are many ways to help protect yourself in your day-to-day activities, so why not also protect yourself from a financial crisis as well with a gold-backed IRA?

Author: Tanya

What We See For Self Directed IRAs in 2013

Sunday, January 6th, 2013

No one has a crystal ball and no one is 100% accurate in trying to predict the US economy. However, as wrong as people may be at a detailed level, its not too hard to see larger, more macro trends with some good level of predictability and accuracy. As such, we are seeing 2013 as a less than stellar year. Its not our desire to be a permabear and naysayer. We want to see the US grow and prosper as much or more than anyone. But, we have to look at the facts, figures, and trends and call them as we see them. What follows is our current view of how the economy is going to play out in 2013 and how these trends will likely impact your investment decisions with your self directed IRA.

What are the key drivers for our less than optimistic outlook for 2013

  • The two political parties (democrats and republicans) will continue to operate in a total dysfunctional manner.
  • The Fed will continue to print, debase, and artificially drive down interest rates
  • The government will continue to tax and spend
  • The president believes in taking from productive citizens and disincentivizing commerce and capitalism
  • The government and many Americans believe that the government actually is a creator or wealth and prosperity and therefore a positive driver in the economy

1. Government dysfunction

The two political parties see themselves as fundamentally different. However, the facts don’t support that perspective. We are now at a point where both parties are agreeing to increase taxes on Americans, despite the fact that the government has seen record revenues over the last years, and despite the fact that government spending is up over 70% over the last 10-15 years. yet, they claim they need more money, and both parties are agreeing. Yet, no one seems to be able to address the elephant in the room which is too much government and too much spending. The push is towards more government in  our lives, more rules and this ultimately leads to more spending (a/k/a more deficits).

At the end of the day the two parties are all about keeping their jobs, and not making any sacrifices. This just goes to prove how little difference there actually is in the two parties. the end result is not addressing our debts and deficits.


2. The Fed has committed to more printing until attitudes improve

The Fed just announced that it would continue providing fiscal stimulus for the foreseeable future. It has even increased its $40B per month treasury purchased to $80B per month. They have also announced that they will maintain low interest rates for the next 1-2 years.

The issue that we see is that this is extremely inflationary. First of all, the printing (purchases in the market), just continues to push more and more cash into the money supply. The cash in the system is at all time historically high levels. At some point, these excess funds will find their way back into the consumer’s hands. This will result in a lot of dollars chasing too few goods, which puts upward pressure on prices. We already have seen inflation rates in excess of 6% (our real number versus the governments artificially low number).

If we continue to see all of these excess dollars circulating in conjunction with very low interest rates, you are likely to compound the inflationary risk. the Feds only tools for tamping this down is to increase interest rates to really high levels. That only impacts the lending process and home prices. They still have the challenge of gracefully calling back all of these dollars.

The bottom line is that we see significant inflation risks, which will have the effect of pushing up costs, prices for goods, services, and homes.

3. The Government will continue to tax and spend

The government debt is at all time, historic highs. The government is committed to be at 25-27% of GDP – all time high versus historical levels of 20%. One in every six Americans is on some sort of government financial assistance. 47M Americans are using food stamp – up from 25M just 4 years ago (refer to the chart below courtesy of http://www.trivisonno.com/food-stamps-charts).

Food-Stamps-Monthly

Its clear that the government will continue to need more tax revenue which can only come from the producers in our economy. With more and more people on government assistance, the pool of tax payers continues to shrink. This places and enormous burden on the producers which at some point, which we believe we have reached, the government burdens dampen economic growth, and further act as a disincentive for producers to produce more and for those on government assistance to get off of the assistance. Its a double negative and the net result is reduced, slow or negative GDP and growth.

To further support the point, the President and Congress has just agreed to extract $1.4 trillion in tax revenue form Americans. We are already at $16T in debt and are now projected to hit $20T+ over the next few years.  Nowhere in the process did the powers that be drill down on any real spending cuts. The moral of the story is that bigger government is here to stay, and this monster needs more of our money for support and re-distribution to others.

Self Directed IRA Recommendations

Real Estate – We still advocate that real estate is  a good bet for 2013.

  • Real estate is a hard, tangible asset.
  • Its tough for the federal government to manipulate the real estate market
  • Even in bad times, people still need a place to live.
  • Government intervention will likely result in price inflation
  • Government intervention will likely continue to push people to be renters vs. owners

Given these factors, we see direct ownership of rental real estate to be positive. We also see great opportunities in private lending through deeds of trusts.

Precious Metals

We continue to be bullish on metals in 2013. We advocate holding physical metals in your self directed IRA. We recommend silver eagles and gold eagles. The market has not necessarily been kind to metals of late. Many are still calling for the fall in metals prices, but they ignore the fundamentals. the price of gold and especially silver, is still not in correct ratio to historic ratios when you look at the overall costs of key items such as oil and real estate. Secondly, the naysayers continue to discount and ignore the inflationary impacts of the government and Fed actions.

Given these drivers and conditions we are still recommending holding metals in your account in proper proportion to your specific situation and needs.

Private placement offering

This asset class is somewhat broad, but we need to address it. Certain specific industries can be interesting. In general, there are big movements towards crowd funding and the funding of small businesses. This is a hot area right now, but you need to use caution and perform due diligence and allocate funds in a direct proportion to your risk level. There are a number of private offerings that deal with real estate which can be interesting and can be good investments. However, the devil is in the detail of what the partners do and how they do it.

Oil and gas offerings are still attractive. Energy prices may fluctuate a bit, but the overall macro trend is towards higher energy costs. This makes the profitability of a venture more likely. Here again, due diligence is very key when looking to invest your self directed IRA.

Summary

We see great opportunities in 2013 for self directed IRA investors. We believe that most people should strongly consider allocation a portion of their portfolio to a self directed IRA so as to move away from the influences of the government and Wall Street, plus take advantage of some of the return opportunities that will present themselves.

Self Directed IRA Fundings Top $464 Million

Sunday, November 25th, 2012

We wanted to take a moment and provide some insight o what is happening with our self directed IRA account activity. As of November 2012 we have funded more than $464M in self directed IRA deals. Below is a graph that give you a good idea of what the activity level looks like.

The significance of this is that we continue to see a steady stream of people coming in from more traditional retirement accounts invested in stocks and bonds, and moving into more hard assets investments such as real estate, precious metals and deeds of trust.

It is our opinion that this trend will not reverse itself for a generation of two. Investors have made a fundamental shift in how they view the traditional markets that we refer to as Wall Street. Investors continue to look for hard assets, investments that they understand, and most importantly investments that are out of the direct control or manipulation of the Wall Street types.

So, for those of you who are still sitting on the sidelines regarding setting up your self directed IRA, then let the numbers help you. There is no better time than now to be setting up your self directed IRA.

How Quickly Our Perception Of Paper Currency Can Change

Saturday, November 24th, 2012

Recently my bank started issuing $50 and $100 bills from the ATM machine. Every time I go to a store or restaurant to spend one these crisp bills, the clerk or the waiter either holds the bills up and scrutinize them like they are analyzing a diamond, or they call over a manager who is more qualified to determine of I am passing good paper. In some cases, like McDonalds, I can’t even give then any bill larger than a $20.

When I was a kid or even a young adult, I would have viewed getting paid in a $50 or $100 dollar bill as very cool and prestigious. If I would have had the ability to pay for goods or services with those same bills I would have thought I had arrived and achieved real success. However, I now look upon these bills as troublesome, embarrassing, and a general pain. Therefore, I will not use the ATM options where I get $50 or $100 bills.

The point of this is that this is the first time in my life I can ever remember having any preference for how I got paid in terms of currency. Money used to be money. Now, not so much. The moral of the story is that it is not so far fetched to believe that we, Americans, could suddenly change our perception of the value of US currency. It is more than plausible to think that as our government continues to debase the US dollar through printing, and deficits, and the resulting inflation that we decrease our belief, reliance, and perceived value of the US dollar. Such changes in our mindset would ultimately result in shifting our ownership to alternate forms of currency such as gold or silver or other hard assets.

As I write, I realize that I am making the case for what is already happening in our country… people are started to shift into precious metals because of their lack of faith or belief in US Government policies and the overall economy.

So what does this mean for your and your self directed IRA?

Well I think the point is clear. The Government has and continues to engage in polices that debase the US Dollar, and create the perfect storm for hyperinflation. This drives the citizens of the USA to look for alternative assets and investments that are not based in US dollars or that will be a hedge against the US dollar. That investment/hedge/asset is physical gold and silver in your self directed IRA.