Posts Tagged ‘gold 401k rollover’

Jim Sinclair – Gold and the Death of Capitalism

by IRA Rollover in Gold Advisors with Comments Off on Jim Sinclair – Gold and the Death of Capitalism

There is no shortage of articles and education telling you how to invest in gold, especially gold bullion bars and coins. Spokespersons abound, ranging from radio talk show hosts to former treasury employees, from ex-presidents to presidents of gold exploration and production companies. Jim Sinclair belongs to the latter group. As chairman of Tanzanian Royalty Exploration, he is so knowledgeable and his advice so respected that he has earned the nickname “Mr. Gold”.

Who is Jim Sinclair?

jim sinclair gold investing ira rollover

If you have any questions about precious metals, commodities, or foreign currencies Jim Sinclair is an acknowledged expert on such things. In 1977 he founded The Sinclair Group, a full service brokerage firm with branches in the United States, Canada, Switzerland, and England. From 1981 to 1984 he was an advisor to Hunt Oil. He’s been associated with two New York Stock Exchange firms and served as president of his own commodity clearing firm, Sinclair Global Clearing Corporation as well as Global Arbitrage. Since 2002 Mr. Sinclair has been chairman of Tanzanian Royalty Exploration, a company that explores for and produces precious metals. He became Executive Chairman of Singapore Precious Metals Exchange in 2013. Sinclair is also the author of dozens of widely published articles as well as three books on investments, precious metals, global events, trading strategies, and how all those aspects affect the world economy.

Jim Sinclair has an impressive background in precious metals and is an astute observer of economic cycles. When he publishes his opinions about how to invest in gold, silver, gold bullion, and other precious metals the investment world generally listens carefully. 

What is Jim Sinclair’s Theory about the Economy?

In 2006 Jim developed an economic formula that explains the cycles of want and prosperity:

  • Interest rates rise, stimulating the housing and motor vehicle industry.
  • Other industries respond and rise or fall and jobs also respond. There are no plateaus or prosperity in economy, it is always moving up or down.
  • Once economic activity starts to slow, the market rises until major companies announce earnings that make the market fall quickly.
  • Profits are curtailed and that means the treasury doesn’t take in as much revenue in taxes.
  • The federal budget sees an increase in the deficit at spending increases each year but tax collections don’t keep pace.
  • Investment in the United States suffers from growing caution about the economy and the deficit.       More dollars are going abroad than are being taken in and the shortfall must be financed somehow.
  • Interest rates rise, especially long term rates, and business activity slows in response. The economy continues its downward spiral. The government sees that it has to adjust interest rates to stimulate the housing and motor vehicle market to get the economy going again and the entire cycle repeats.

This is not a very optimistic view of the economy but it is realistic. If a wise investor pays attention and pinpoints when each phase begins and ends, the cycle can be quite profitable. It can help you schedule best how to invest in gold by timing your purchases to get the most from your dollar. Looking at the economic cycles realistically allows you to time your purchases of investments so that you get optimum value for your retirement account.

What Will the Future be Like for Retirees?

Mr. Sinclair believes that unless you look at the present and future economy realistically you won’t have the retirement you want or deserve no matter how you invest. He believes that between the markets and the government, capitalism no longer exists and a new financial system is on its way in, slowly but surely. Jim also believes that OTCs, not the housing markets and other economic factors, were the main cause of the Great Recession that spread around the world.

OTC (over the counter) derivatives (OTCD) are the main culprit in the death of capitalism and the ruin of the world economy. OTCD are unregulated trades that don’t involve a formal exchange such as the New York Stock Exchange or American Stock Exchange. They include debt securities traded through a dealer network that is unregulated with very few rules. Stocks on OTC networks are typically those that can’t meet the listing requirements of the legitimate stock market exchanges. According to Jim Sinclair, OTCD are in large part responsible for the economic meltdown of the world economy.

facts of economy future

So what is the future now that the economy is having such a hard time restarting? Currencies are falling and are no longer valuable in the long term. Capitalism has largely been crushed as government has taken over markets and largely regulated free enterprise out of existence.

That leaves gold bullion and other precious metals as the only reliable source of wealth in the new economy that is developing.

How in the World Can a Retiree Spend Gold?

It’s all well and good to learn how to invest in gold and other precious metals but how do you spend it when you retire? Do you cut off chunk to buy food or pay utilities? Do you buy in varying weights that you will use in place of a worthless dollar?

Such scenarios can only happen in the fictional world of movies. In reality, there will be a currency system in place by the time you’re ready to use your IRA to fund your retirement. Just like our current system, you can buy currency with your gold and other precious metals that you can use to spend on necessities and luxuries.

The advantage to investing in precious metals is that it will be worth something no matter what currency is on the market. A dollar’s worth of gold will still be worth a dollar and a Euro’s worth of gold will still be worth a Euro. In any currency present or future, gold will hold its worth. Real estate, precious and semi-precious gems, collectible coins, art, and other investments can lose value but gold and precious metals are always viable and valuable no matter what kind of economy you are living in.

In the future, just as in the present, you will be able to exchange your gold and other precious metals for the currency being traded. No matter what country you are in or the form of currency they are using or how it is backed, gold will provide you a comfortable lifestyle.

Prepare Yourself for a Great Retirement!

gold ira rollover

With the relatively recent economic collapses, the global recessions, and gloom and doom predictions you might think that a comfortable retirement is beyond your reach. Nothing could be further from the truth!

Gold is a great way to insure that your retirement years are the best of your life. Remember that the key to wealth and security is diversity; it’s wise to have a mixture of precious metals, stocks and bonds, mutual funds, and other financial products. Experienced investor and gold expert Jim Sinclair advises that you start learning all you can about how to invest in gold then slowly build up your retirement account with gold bullion and other precious metals.

We suggest you to follow the below three steps:

Investing in gold or any other precious metals should be a well thought through decision.  We advice you to do your research and be comfortable with whichever company you decide to invest with:

Step 1:

Visit our  Top Gold IRA Companies review page

Step 2:

Visit our recommended company Regal Assets

Step 3:

Call this Regal number and get all your questions answered – Free of Cost – 1-877-721-2659

regal assets

Gold Investment with 403(b) Accounts

by IRA Rollover in 403b with Comments Off on Gold Investment with 403(b) Accounts

When you are considering buying gold in preparation for retirement you can probably think of a dozen questions to ask, especially if you’ve never had the opportunity to invest in gold. Your IRA (individual retirement account) is a great product to use in gold investment but what if you have a 403(b) account? Let’s take a look at exactly what a 403(b) retirement account is and what you can do with it if you want to invest in gold.

What is a 403(b) Account?

If you work for a tax-exempt organization such as a public or private school, hospital, a church, a museum, or a charitable organization you probably have a 403(b) retirement account. The 403(b) is so named simply because it is in section 403(b) of the tax code that deals with retirement plans. Established in 1913, the tax code originally was 400 pages long. By 2010 it had grown to 71,684 pages and is surely much longer now! With so many rules, requirements, and exemptions, referring to specific financial products by their number in the tax code is about the only way to keep them straight.

A 403(b) retirement plan is tax deferred, which means you won’t be taxed on it until you start to use it. Anything you take out of it during retirement is taxable income. Unlike other IRAs, you must begin mandatory minimum distributions at age 59 ½ whether you have stopped working or not. Once you begin to withdraw money from your 403(b) you will have to pay taxes on it just as you do on the money you earn before retiring.

How Much Can I Contribute to a 403(b)?

If you are younger than 50 you would have been allowed to contribute $18,000 into the account in 2016; if 50 or older you could make catch-up contributions up to $6,000. You should check with your human resources department or the tax code to get the current limits.

What Investment Products do 403(b) Accounts Use?

The 403(b) plan used annuities as their sole investment product until the mid 1970s. Annuities are basically insurance policies; your contributions to the fund pay the premiums on the policy. When you retire you can draw a monthly income or a specific amount in a lump sum. The lump sum will consist of your contributions plus the interest they have earned. Some annuities offer a fixed interest rate while others vary with the market. And although the contributions are tax free, there are stiff penalties for withdrawing from the account before the annuity matures.

These days most 403(b) plans allow participants to invest in stocks and mutual funds, as well as annuities or a combination of the three products. If you have done any research on investing, you know that the key to success is diversity. Having a 403(b) retirement plan limits your investing options but you may be able to contribute more over your lifetime since your contributions are not taxable.

There are four types of investments currently approved for 403(b) retirement accounts:

  • Mutual funds
  • Individual bonds and stocks
  • ETFs, or exchange traded funds
  • Fixed or variable annuities

Can I Fund a 403(b) With Gold?

You cannot yet use a 403(b) retirement account to invest in gold or other precious metals but some plans do allow gold investment in the form of gold stocks and gold ETFs (exchange traded funds). While many investors find that gold stocks and ETFs are profitable for them there are significant risks in “paper gold” as these investments are called.

The Pros and Cons of Funding a 403(b) Account with “Paper Gold”

Paper gold is just that—a declaration of gold value on paper or papers that state you hold shares in a gold mine or a company that owns a gold mine. You can find companies like this on the Gold Miners Index (GDX). ETFs are another form of paper gold whose value rises and falls depending on how risky the financial climate is.

Owning part of a mining facility can be very profitable but you are also prey to circumstances beyond your control. You are at the mercy of regulations and taxes imposed on these companies by the federal government. If you buy stock in a mine that is located in a foreign country you could profit more due to the lack of regulation. However, if your mine is in a volatile, unstable country you run the risk of it being confiscated by a temporary government, rendering your investment worthless.

Owning stock in a mine also means that your profits depend on the costs or production and the quality of management in charge of the facility. Poor management can mean that you are left holding worthless paper if the mine shuts down. You are also out of luck if the nation experiences a currency collapse since the value of your gold is only on paper, not in your physical possession.  

currency fail - buy gold

Gold ETFs are also riskier than owning physical gold because the stocks rise and fall faster as the spot gold price moves around. There are scores of these ETFs on the market today and some perform very well, making nice profits for their owners. Others aren’t efficient gold investment products because of excessive fees. When choosing an ETF product it’s important to make sure that all your profit isn’t consumed by fees and other expenses.

You Can Still Use a 403(b) Account to Buy Gold

If you work for a tax-exempt company that has provided you a 403(b) retirement account you can still use that account to invest in gold bullion, bars, or other forms of physical gold. All you need to is roll over your 403(b) into a more conventional 401K or other retirement account that allows you to fund it with physical gold. 

Rolling over your 403(b) is not at all difficult. You have a choice of a direct rollover or cashing out and re-investing in a 401K. If you choose to cash out you have exactly 60 days to invest the funds. If you haven’t done so by day 61 you’ll pay a hefty 10% penalty on those funds. You are not permitted to use the cash to buy investments before you establish a new IRA. Having an IRA already set up before you withdraw funds is the best way to maneuver those funds and keep within the time limits allowed. You are limited to one rollover annually.

Of course, you can also take advantage of a direct rollover in which you never see the proceeds of your 403(b). It is transferred directly into a waiting IRA, ready for you to invest it as you see fit. Most people choose this option because it’s so convenient.

Once your funds are deposited to a more conventional IRA you can begin buying gold and storing it for your retirement.

gold value always rising - safe investment

Diversity is the Key to Successful Retirement

Successful, profitable investing depends on diversity. Gold investment should be only one of many financial products that you use to insure a comfortable retirement. While gold will always be valuable and never worthless, don’t put all your money into precious metals. You should have an assortment of products such as stocks, mutual funds, bonds, real estate, and other investments. When one product is not doing so well the others will likely be earning. Ideally you should invest at least 5-20% of your retirement assets in precious metals. You can do more if you want but the more you diversify the more secure and comfortable your retirement will be. 

As you can see, the form your IRA takes doesn’t have to keep you from buying gold. There are legal and sensible ways to invest in gold no matter what type of IRA your money is invested in.

If you are a conservative you’ve probably heard at least one commercial featuring Glenn Back promoting the sale of gold bullion at the very best gold prices available. Since 2008, his radio and television shows as well as his internet endeavors have been sponsored by Goldline, LLC, a company he enthusiastically endorses. But do they really have the best gold prices on gold bullion?

Things Aren’t Always What They Seem

Most large companies maintain a publicity department to project a favorable image and counteract any negative feedback or news regarding their operations. In most cases the public can be persuaded to believe the best about anyone or anything if there is a good PR firm involved. However, once legal action is taken it’s hard to put a positive spin on it. This is what happened to Goldline.

In November of 2011, California prosecutors charged Goldline with using a bait-and-switch tactic to lure customers into buying antique coins as investments. A total of 19 counts of theft and fraud were included in the indictment. The complaint alleged that Goldline lured customers with gold bullion then persuaded them to invest in overpriced coins “using false and misleading claims”. There were also complaints from customers who received different products than what they ordered. Goldline had to pay to have a federal prosecutor monitor their operations for five years in order to make sure they are operating honestly and not misleading consumers.  

Sales personnel at Goldline were trained to offer gold bullion but switch to overpriced antique coins that were marked up as much as 50%. In order to lure customers seeking gold bullion and the best gold prices Goldline hired high visibility spokespersons such as John Mercanti, a retired engraver for the U.S. mint. Other prominent endorsers include radio personality Mark Levin, Mike Huckabee, actor and politician Fred Thompson, and Laura Ingraham. 

Don’t Believe Everything You Hear

Celebrity endorsements do not mean a product is good; it means that the celebrity is being paid to get you to buy the product. A popular actor or politician brings in sales because people trust their perception of the kind of person they are. They don’t realize that those personalities are not actually the people they portray on the screen or impersonate on the campaign trail. A product should be purchased on its own merits, not by what a popular actor or public figure says about it.

When a spokesperson claims that they are a customer of a company like Goldline it is probably true. Companies hand out products to their endorsers at no charge or minimal cost so that they can make the claim that they buy the product.

invest in precious metals ira

What’s So Wrong About Buying Antique Coins? 

There is nothing wrong with buying antique coins as investments as long as you know that their value is fluid depending on the market. Numismatic coins are a fascinating hobby and can be quite profitable but their value depends on supply and demand. Buying a gold collectible/antique coin will often cost you more than the value of the gold it contains and if there is no demand for it you can lose up to 90% of what you paid for it.  

If you are buying antique coins because you love to collect and sell/trade them, that’s a valid reason. If you are buying them in order to invest in gold, you may be making a costly mistake. Selling these coins to buyers who know nothing or very little about the market for collectible coins is very profitable to the seller but quite costly for the buyer. Remember that it is their business is to get you to buy those coins and they’ll do anything to get your money. 

Making Money by Fomenting Panic 

Companies dealing in gold bullion and other precious metals aren’t the only ones that encourage a fear of economic and societal collapse to get you to buy their products. If you acted upon all the dire warnings you hear on television and radio your home would be full to the rafters of gold, silver, platinum, palladium, freeze-dried food, guns, ammunition, water filtration devices and various items of barter. Their reasoning is that if you feel as if your family is threatened you’re going to spend all you can afford on these things. Actually, the only ones that profit are the merchants you buy from. It total collapse really came to pass, none of those items would do you much good in the chaos that would result. 

Another tactic Goldline and other companies are fond of using is fear government confiscation of gold. The sales staff would tell prospective buyers that antique coins are the only type of gold that the government can’t legally confiscate. This is not true and there are no federal laws or Treasury regulations that back up that claim. It’s true that the federal government confiscated gold in 1933 but that is the only instance and federal law states that confiscating the gold of private citizens is legal only in a national emergency.  As a condition of their settlement with California, Goldline is no longer permitted to claim that the federal government can confiscate the gold of private citizens.

protect your family from failing economy

When is the Best Time to Buy Gold?

The best time to buy gold, quite frankly, is any time. There are scores of headlines about gold hitting bottom or being at its highest price in history, shouting at you from internet and print headlines as well as mass media. The truth is that whatever the price of gold is, it’s more valuable than our paper currency that is backed only by air and promises.

You’ll find that when stocks are at an all-time high, inflation is under control and the dollar is strong the price of gold is low. This doesn’t mean that gold is worth less, it just means that consumers and the government are confident in the economy and the demand for gold is not at its highest. When these conditions worsen, the price of gold is higher. Gold’s worth is not dictated by the economy, only its price. It is the most stable commodity you can buy and will be one of the few valuable media of trade if the currency collapses.

Make Your Gold Investment Wisely

It’s a good idea to diversify with silver and platinum when you are investing in precious metals. As well as having a variety of metals it is also wise to buy a number of sizes. Precious metals, including gold, are sold in weights as small as one gram (.03 ounces). This means that you can buy gold for as little as $40-50 and begin to build your security and wealth.

Glenn Beck and other celebrities and public figures will try to get you to buy gold from the companies that pay them. It’s up to you to thoroughly research the companies you are thinking of doing business with. Dealing with a company you can trust is just as important as getting the best gold prices on gold bullion and other precious metals when you are insuring a secure retirement.

We suggest you to follow the below three steps:

Investing your hard earned money should not be a quick decision – We advice you to do your research and be absolutely comfortable with whichever company you decide to invest with:

Step 1:

Visit our  Top Gold IRA Companies review page

Step 2:

Visit our recommended company Regal Assets

Step 3:

Call this Regal number and get all your questions answered – Free of Cost – 1-877-721-2659

regal assets