A Regent Gold Group Special Report

Transcription

1 A Regent Gold Group Special Report

2 Free Report: How to Gain Checkbook Control of Your IRA Note: This Special Report takes a look at how individual investors can assume Checkbook Control over their tax-deferred retirement savings accounts by creating an IRA LLC. If you are like most investors trying to secure a comfortable retirement, it s not unreasonable to expect that your hard-earned savings will be there for you when you are ready to enjoy your Golden Years. And, if you are like more than fifty million Americans, you may have already decided that one great way to reach your retirement goals is through a tax-deferred savings account, known as an IRA. Individual Retirement Accounts, or IRAs have become a wildly popular retirement-savings vehicle over the last 20 years, with an The freedom of individuals to control their own retirement portfolios has made the self-directed IRA market one of the fastest growing segments in the financial service industry. One of the key reasons individual investors are attracted to gaining Checkbook Control of their IRA is to have access to one s gold and silver during times of national crises. estimated 48.9 million U.S. households, representing 40.4 percent of the country. As of 2012, total IRA assets were over $5.4 trillion dollars, with the vast majority invested in traditional IRAs. However, the fact is that most traditional IRAs consist of stocks, bonds and mutual funds, all of which are risky paper assets. This leaves the average IRA portfolio highly susceptible to market fluctuations and loss of value, as became obvious during the 2008 market crash when millions of Americans saw their retirement portfolios suffer catastrophic losses of up to 50% or more. And really, for many individual investors, the 08 crash was the first time they were forced to acknowledge that their IRA was not quite the risk-free investment they were led to believe

3 What is a Self-Directed IRA? A self-directed IRA is an Individual Retirement Account that provides a broader scope of investment options than the standard IRA allows. It can be used to invest in a wide variety of vehicles, including real estate, private stock offerings, paper certificates and commodities. The freedom for individuals to control their own retirement portfolios has made the self-directed IRA market one of the fastest growing segments in the financial service industry. It is currently estimated to be $100 billion (2% of all IRAs), with a growth rate of approximately % over the last five years. Additionally, projected growth is expected to continue along a similar trend over the next five years. Among self-directed IRAs, those specializing in precious metals, such as gold, silver, platinum and palladium continues to follow this strong growth trend. This should hardly be a surprise to anyone who even casually tracks the financial markets, as precious metals, particularly gold and silver, have provided gains of over 300% during the last 10 years. By owning precious metals in their IRAs, investors are taking control of their retirement savings by protecting their portfolios against the disastrous effects of erratic markets, inflation and decreased purchasing power in their retirement years. So what exactly is required if an investor wants to own physical gold and silver in their IRA account? Surprisingly, the process is relatively straightforward, especially if you already have an existing IRA or 401K. First, you open up a self-directed IRA with a company that specializes in precious metals. Next, you call the custodian where your current retirement account is held, such as Schwab, TD Ameritrade or Fidelity. Then, you ask your broker to transfer or rollover you funds from your old IRA or 401K to your new, precious metals IRA custodian

4 To have a greater degree of control over your IRA, including having more say as to where you can keep your IRA Gold and Silver and how fast you can access your funds, an IRA LLC is required. Finally, you work with a trusted precious metals specialist and purchase your precious metals, gold and silver being far and away the most popular among investors. Now, your precious metals are transferred, fully insured, to one of a handful of government-approved, secure storage facilities. So now you own physical gold and silver in you IRA. It is safe and secure and if stored at a leading facility like DDSC, fully insured by Lloyds of London against fire, theft and all the usual list of catastrophic suspects. You own it. It is yours to hold or sell as you chose (though of course, if you sell it before you turn 59½, there s a good chance you will be subjected to stiff IRS penalties.) You can even go and visit your gold and silver at the approved storage facility. But the one thing you can t do with a regular precious metalsbacked IRA is to take physical possession of it. To have a greater degree of control of your IRA, including having more say as to where you can keep your IRA precious metals and how fast you can access your funds, an IRA LLC is required

5 Exactly What is an IRA LLC? In 1996, the federal tax court granted individuals the ability to have direct oversight of an IRA, no longer requiring them to use a custodian. For the first time, individual investors were freed of the costs and time constraints that custodians imposed. This new retirement account was called a checkbook IRA. It basically granted investors the ability to invest in the same broad range of investments as a regular self-directed IRA, but with additional benefits, including the ability to take advantage of timely investment opportunities with the speed of signing a check. With a checkbook IRA, investors finally had the same power to control their retirement accounts as a regular, non tax-deferred account. However, along with this power came certain rules, and first among them was that the IRA had to be a self-directed IRA that is owned by a Limited Liability Company, or LLC. In turn, you would be the owner of the LLC. Here s how it works. First, you need to open a self-directed IRA. Second, you transfer or roll over the funds from your current retirement account, whether an IRA or 401K. Next, you create an LLC, and using the funds in your newly opened self-directed IRA, purchase all of the membership units of the LLC. Once this is done, your money goes into a regular business account that is set up in the LLC s name. This account becomes directly linked to your IRA funds, and you receive a checkbook that will give you access to the account. You sign the checks; you hold the financial purse strings. You have 100% complete signing authority over your retirement funds. In other words, you ve just gained checkbook control of your IRA

6 Benefits and Drawbacks of a Checkbook IRA What are the Benefits? One of the key reasons individual investors are attracted to having an IRA LLC is to have access to their gold and silver during time of national crisis. While you cannot hold physical gold or silver in an ordinary precious metals IRA, there is a certain amount of latitude in an IRA LCC. One method to having access to your IRA precious metals is to hold the physical gold and silver in a safe deposit box at a nearby bank. The box must be registered to your IRA s LLC. Another method is to keep the gold and silver at a home-based vault, though it is important to note that the precious metals may not be held for personal benefit. Talk with your tax professional to make sure you understand the rules. With a self-directed IRA LLC, you are able to make purchases of precious metals instantly. No paperwork is required to access your funds, you can simply write a check when you need to. This allows you to take advantage of price dips in precious metals such as gold and silver, a common tactic used by stock investors who want to accumulate a strong position in precious metals for their portfolios at the best possible prices. As with all IRAs, an IRA LLC provides numerous tax benefits. The value of the physical gold and silver in your account can grow, and you won t have to pay any taxes until you take distribution. In many cases, administrative fees and transactional fees associated with a regular self-directed IRA are eliminated when you have a Checkbook IRA. What are the Drawbacks? Generally speaking, just like any IRA, you can t take a penalty-free distribution of funds until you are 59½. Depending on attorney fees, costs to open an IRA LLC range from $500 all the way up to $10,000. As with all investment-related activities, there are certain risks. Along with the power of checkbook control comes responsibility to do due diligence. Make sure that you are familiar with any costs and other limitations based on your individual state

7 Speak to a Regent Gold IRA Specialist Contact us today to see how investing in Gold and Silver can open new doors for your investment plans and how investing in these precious metals can strengthen your savings for the future. Speak to a Regent Gold IRA Specialist now to learn more Regent Gold Group 269 S. Beverly Drive Suite 1085 Beverly Hills, CA A REGENT GROUP PUBLICATION The statement(s) made on in this publication are opinions and past performance is no indication of future performance. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same depending on a variety of factors. Regent Gold Group cannot guarantee, and makes no representation, that any metals purchased will appreciate at all or appreciate sufficiently to make customers a profit. The decision to purchase or sell precious metals, and which precious metals to purchase or sell, are the customer s decision alone, and purchases and sales should be made subject to the customer s own research, discretion and judgment