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Weekly Market Update: Protect Your Retirement Account From The Bear Market Rally

Over the last few weeks, bond price have spiked even as yields have plunged. Investors are waking up to a coming recession. Their knee-jerk reaction has been to pour their money into safe haven Treasuries, thinking this will save them. The 10 year Treasury yield dropped to 2.26 percent last week on May 29th. This graph reveals the trend:

Chart appears courtesy of CNBC.com

This has led to a yield curve inversion, which has historically (and very accurately) indicated a recession looming on the horizon.

Economist Peter Schiff has been warning about the end of the stock market’s recent bear market rally. He explained that it was constructed on the idea that the Federal Reserve would begin shifting into an easing cycle. Chairman Jerome Powell crushed this idea recently, which led Schiff to believe it would kill the market’s rally. He put this cleverly as:

“What the Fed giveth by being more dovish than the markets expected, the Fed had finally taken away by being more hawkish.”

Now looking at the markets several weeks later, both the Dow Jones and S&P 500 have fallen a significant 5.5 percent off of their highs of early May. Economists like Peter were taken aback by how long the bear market rally managed to continue to the highs it reached. Yet now it is apparent that the pendulum is again swinging the opposite direction. He now expects the markets to test their lows from earlier this year.

This would lead the Fed to ride to the market’s rescue at that point. Even now, the various markets have priced in rate cuts, though the Fed had verbally taken this option off of the table. The million dollar question is: when will the U.S. central bank act, or how long will they wait? Schiff has a strong opinion on this issue:

“If the Fed waits until we’re officially in a recession, well, then they’re just going to go straight to zero. They’re not going to pass go. But if they started cutting rates sooner, like maybe next week or something, then maybe its possible they only go a quarter point or a half point. But that’s not going to be enough. That is going to do nothing. That is going to be like waving a scarf at a bull. Because the minute the Fed cuts the markets are going to push them to cut more.”

Schiff does not even believe another vaunted go round of Quantitative Easing will be sufficient to stave off the crisis this time. With each popping bubble, it needs a lot more air to reflate it. The quantity of QE that the Fed would need to blow back up a bubble after the “everything bubble” pops would destroy the dollar as a currency.

Markets may not completely understand this yet, but they are beginning to fear a coming recession. They are correct in their assessment that a recession is in the cards, but this is bearish for bonds, not bullish. Bond markets are placing bets on an upcoming recession which they believe will prompt the Federal Reserve to slash interest rates. Schiff explains the problem with this remedy:

“But if the next time the Fed slashes the short term interest rates inflation spikes up, and that means long term interest rated don’t go down, they go up and they follow the inflation rate higher, then that is going to exacerbate the pain of the next recession.”

Is Your Retirement Portfolio Protected from the Bear Market Rally and Coming Recession?

You can picture in your mind how disastrous this result would be for corporations, consumers, and governments which are all saddled with unprecedented amounts of debt. The federal government debt alone is now over $22 trillion and counting.

Recession is inevitable. Now is the moment to be preparing for the markets to fall, potentially for years. Where can you find an effective safe haven for your retirement accounts?  With 3,000 years of proven hedging history, gold delivers this every time. When your personal retirement assets are protected by the safe haven yellow metal, you will sleep easier at night.

Click here today to obtain your completely free and absolutely no-obligation gold IRA rollover kit from the nation’s most beloved and award-winning gold retirement company— Regal Assets. The nation’s top-rated gold retirement and alternative asset firm goes out of its way to deserve its coveted reputation by delivering individualized attention to both domestic and international clients. Their 100 percent free precious metals investing report will ensure that you receive the critically time-sensitive information you do need to safeguard your IRA retirement assets using a prudent, partial diversification of your retirement accounts into physical, tangible gold.

The post Weekly Market Update: Protect Your Retirement Account From The Bear Market Rally appeared first on Regal Assets.

Why Should I Rollover My 401k Into A Gold Ira

Self-directed IRAs including precious metals will help you meet two retirement goals that are important. They combine the wealth-preserving power of the ultimate safe-haven assets with the tax benefits of an IRA.But you will have to establish a self-directed IRA before you can take advantage of these benefits. Generally plans do not allow diversification into physical gold due to the special circumstances that go along with precious metal possession.

Self-directed IRAs open the door for precious metals while keeping all the rules pertaining to taxation treatment that apply to retirement plans that are traditional investment. Once you get an account set up, you'll have the ability to invest retirement funds directly into gold and silver coins and bullion. With a third-party custodian, you can have your metals allocated at that time.

IRAs including precious metals can allow you to meet with two important retirement goals. They combine the wealth-preserving power of the ultimate safe-haven assets together with the tax benefits of an IRA.But you will need to establish a self-directed IRA until you can take advantage of those benefits. Generally, conventional plans do not allow diversification into physical gold because of the special circumstances that go along with precious metal possession.

How To Rollover 401k To Gold

IRAs open the door for precious metals while keeping all the rules pertaining to tax treatment that apply to retirement plans investing. Once you get an account set up, you will be able to invest retirement funds into gold and silver coins and bullion. With a third party custodian, you can have your metals physically allocated at that time.

Youll often do so when youve left your former employer and want to keep your retirement savings in one place. However, you might also be looking to increase your retirement savings with resources that arent as closely tied to the market.

Read on to learn about the basics of gold IRA strategies and how to start one by rolling over your 401(k). Youll also see how to determine if such a plan aligns with your retirement goals. What Is a Gold IRA Made possible by the Taxpayer Relief Act of 1997, a golden IRA is a sort of long-term retirement account where a custodian holds precious metals to the account owner.

Why Should I Rollover My 401k Into A Gold Ira

You can also hold certain types of platinum, silver and palladium. Gold IRA plans are typically self-directed IRAs, which allow varied investments compared to a traditional IRA. One thing to note: you cant only collect anything. The IRS has a list of particular fineness requirements all precious metals must meet before you can have them on your gold IRA.

First things need to discover a custodian. Because its illegal for you to keep the gold yourself, you need a custodian to hold the gold you buy through your IRA. By contacting a local bank, credit union or trust company, you can find one. Make sure that you do your research and find a company that has a strong track record of well-performing gold IRAs.

Often, the custodian will have a list of brokers its worked with that can act as a starting place for your research. When youve discovered a custodian and a broker youre satisfied with, you can open your account and buy your precious metals. Once its time for you to retire, you have the option either to accumulate the metals or put them into cash.

Why Should I Rollover My 401k Into A Gold Ira

Steps to deal with a 401(k) to Gold IRA Rollover Once youve opened your gold IRA, you can contact the company managing your 401(k) accounts to begin the rollover process. First youll need to choose between a rollover.

Having an indirect rollover, you've got 60 days from the date you get the funds to transfer the money to your custodian or gold IRA company. The capital become a taxable withdrawal if you dont complete the transfer in the 60 day period.

With either rollover option, youll also have to be sure youve fulfilled any particular requirements the company might have for rollovers. Once youve met the prerequisites, the business is going to send a check with your funds to either you or your gold IRA custodian. Now, youll have completed your 401(k) to gold IRA rollover.

Why Should I Rollover My 401k Into A Gold Ira

Gold IRA plans, or gold investments in general, can be attractive since the purchase price of gold generally goes in the opposite direction of the stock market. So if your securities investments are doing badly, your gold investments are probably on the increase, and vice versa. Investors use gold investments to hedge against other investments.

Gold will definitely have some value to it. However, its important to remember that theres no such thing as a investment. The price of gold is subject to its own rise and fall.

Bottom Line Investing in gold may be a fantastic way to diversify your retirement strategy. This could indicate physical coins and bars or inventory in businesses that are gold. If youre looking for a new destination for those funds in your 401(k) and you want something that doesnt closely follow the stock market or the economy, then a 401(k) to gold IRA rollover may be a fantastic option.

How To Rollover 401k To Gold

Make sure that your retirement strategy incorporates several distinct asset classes. That will help protect you. Tips Finding a financial advisor can explain the advantages and disadvantages of different retirement strategies can prevent a lot of headaches. With Smart Assets Smart Advisor fitting tool, you can answer a set of questions about your financial needs and preferences.

When would you rather be taxed With a traditional IRA, taxes will apply when you withdraw your funds. Before you invest your cash taxes will apply.

With the Smart Asset retirement calculator, you can enter your data and determine the funds you need to keep your lifestyle after you retire. Photo Credit: i Stock.com/gmutlu, i Stock.com/Aleksander Nakic, i Stock.com/Rawpixel .

Why Should I Rollover My 401k Into A Gold Ira

Self-directed IRAs including precious metals will help you meet two important retirement goals. They combine the wealth-preserving power of the ultimate safe-haven assets with the tax benefits of an IRA.But you'll have to set up a self-directed IRA until you can take advantage of those benefits. Generally, conventional plans don't allow diversification into physical gold because of the special circumstances that go along with precious metal ownership.

Self-directed IRAs open the door for precious metals investment while keeping all the rules pertaining to tax treatment that apply to traditional retirement plans. Once you get an account set up, you will be able to invest retirement funds directly into gold and silver coins and bullion. With a third party custodian, you can have your metals physically allocated at that point.

To fight the rising cost of pensions during the 1980's, the account was born. Named after the subsection of the Internal Revenue Code by the same designation, a 401k account is simply a savings plan that permits workers to invest some of their pay before taxes are taken out.

Why Should I Rollover My 401k Into A Gold Ira

Companies will match a portion of the employee's contribution in an effort to lure and retain talent. A 403b is a public employee's version of a 401k. Employees that work in government agencies, schools or organizations typically have pre-tax contribution retirement programs that are 403b. 401k or 403b accounts have distinct limitations which produce the transfer of accrued monies from such accounts into gold, a particularly attractive proposition.

Plan participants have very little control over their cash as an account advisor can be assigned on behalf of the employer to manage fund movements and investment decisions. The plans themselves have limited investment options or variety and typically feature a combination of stocks, bonds and mutual funds. If an employee needs to take money from a given plan prior to retirement or under the age of 59 years old, they should expect to cover both heavy interest and penalties.

When it comes to optimizing your retirement dollars and securing your future… flexibility, diversification, and expansion are essential which is why it's important to consider precious metals like silver and gold. A IRA can reduce your retirement portfolio's volatility and protect your purchasing power! With the mounting global economic crisis and our domestic debt and deficit issues, many savvy investors are turning 401k monies into precious metals, espeically gold.

Why Should I Rollover My 401k Into A Gold Ira

If they do not allow for gold and other precious metals investments it may necessitate rolling your funds to a self-directed IRA. Bear in mind that some plans have roll-over penalties and others do not allow accrued dollars like leaving employment or financial hardship, unless an exemption is mentioned to be moved at all.

Smart investors are putting both physical gold and silver in their Individual Retirement Accounts (IRAs). Silver and gold have become significant possibilities for hedging against increasingly likely economic collapse.

You may also complete our IRA Account Type and you will be contacted by a Lear Representative. The statements made on this site are opinions and past performance is no indication of future performance or returns. Risk is, like all investments, carried by metals. Coins and precious metals may appreciate, depreciate, or remain the same depending on many different factors.

How To Rollover 401k To Gold

Makes no representation, and Can't guarantee, that any metals bought will appreciate or appreciate a profit. The decision and which metals to purchase or market, are the clients decision alone, and purchases and sales should be made prudence subject to the clients own study and judgment.

For anyone concerned about financial security in retirement, Next Avenue Contributor by Kevin Mc Kean, those advertisements touting silver and gold IRAs on cable TV channels that are conservative-leaning and from news outlets can sound persuasive. Take the Rosland Capital commercial.

However, you can control whether or not you let the money in your retirement lose its value. Theres the one from Lear Capital like Rosland Capitals, running on Fox News Channel that asks the question: Would you like to get an asset that has the potential to get a 60% growth or Hard to say No to that.

How To Rollover 401k To Gold

Theres generally no minimum investment and the advertiser teaches you how to open the account and roll up your existing IRA or 401(k) to it.

The advertisers taste for media may be due to the fact that their ads have a tendency to play on fears of meltdown. The world is a dangerous place, they may say. Even international upheaval, inflation or federal debt could hammer the value of stocks, bonds and cash. Protect your money by putting it into hard assets that promises and can survive a catastrophe or, as Devane puts it, an IRA backed by gold and silver, not.

Theyre trying to frighten people into thinking that is only. The focus on retirement accounts makes sense because thats. So they are both preying on fear and going where the money is, says Allan Roth, founder of the fee-only financial advisory firm Wealth Logic, of Colorado Springs, Colo..

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