Retirement

From the Desk of: Alex Stanczyk
Re: Retirement Investing

What do I have to say on the topic of retirement?

Simply this: If you have your money tied up in instruments that depend on a strong stock market (401k, IRA, Etc), then seriously investigate what you need to do to move that into something else, and do it fast.

We are currently headed towards one of the biggest financial train wrecks in history. Put simply:

• The USA has legislated a stock market crash of unprecedented proportions. Thanks to legislation that requires retirees to start pulling funds out of their accounts before the age of 71, as the 80 million baby boomers retire and start to suck liquidity out of the market, it will come down like the Hindenberg. If you are smart, you will be one of the first to move your money out of the markets before mass sell offs destroy your portfolios.

• Social Security Is Insolvent. When the Social Security System was created, there were approximately 4 workers to each benefit recipient. As the Baby-boomers retire, that number will rapid shift towards a 1 to 1 ratio. The funds that were supposed to be earmarked for Social Security use were long ago plundered for other government programs. If you actually believe SS will be there for you in your time of need, I encourage you to investigate further.

• Medicaid and Medicare. The promises made by politicians in regards to what you are getting are impossible to keep. The total amount required to actually fund these programs as written exceed $55 Trillion dollars according to David Walker, Comptroller General of the United States. These programs are mathematically unsustainable, and if you are currently relying on them, I urge you to seek other options.

The good news?

There are solutions. You can move money out of current vehicles and into ‘Self Directed IRA’s’ for one. This would allow you to do a direct rollover of your assets with no tax liability and enable you to invest in precious metals with the proceeds.

We will be adding to this section continually, with step by step instructions on how to do this, as well as links to IRA Custodial organizations that can assist you.

Update: 4-12-2008AD

Individual Retirement Accounts (IRAs) can be funded with physical gold and silver, yet very few investors are aware of this fact. They are exempt from all capital gains taxes, so if your investments perform well over a long period of time, it can result in huge savings.

Diversifying your retirement portfolio with precious metals is fundamentally required if you properly understand asset allocation (see the Ibbotson study). Additionally precious metals normally rise during periods of unsettling events such as wars, terrorism, inflation, deflation, downturns in the stock market and the US dollar. Precious metals usually yield large profits in these circumstances.

What is unique about this plan is that you can take physical possession of the actual gold or silver when you make your withdrawals. That’s correct! You can cash out in real honest-to-goodness gold and silver instead of fiat dollars. This is the most important feature of all. Down the road, in this generational bull market in gold and silver, the odds are in your favor that you will want and need the physicals when it’s time to access your investment.

Once you decide that you want to include precious metals in your retirement planning, you need to determine how much you want to invest. How much depends on your annual contribution, your personal goals and your individual investment philosophy. Factors to consider are your age, total assets and risk tolerance.

About the legality of Self Directed IRA’s: IRA Association of America Article

We are in the process of identifying an IRA Custodian to partner with. Join our newsletter for updates.

Recent Articles regarding Inflation:

Desperate Consumers Raiding 401k’s

Pensions Plunge by $170 Billion

To your future prosperity,

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