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Lear Capital: The Gold IRA - A Good Strategy For Long Term Savings and Retirement

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Sponsored Post by Lear Capital

Regardless of your traditional investment preferences, tangible assets like gold and silver can help make the profitability and safety of your retirement portfolio far more attainable.

Simply put, gold can reduce the volatility of your retirement savings.  Historically, gold has moved counter to the direction of stocks, bonds and mutual funds.  Technically speaking, precious metals are "negatively correlated" to stocks.

Examining the charts will bear this out.  If we go back to the time when Nixon took us off the gold standard, allowing gold to once again trade freely in the marketplace, we watched gold rise from $42 an ounce in 1972 to a bubble high of $850 an ounce in 1980.  During this same time, gold climbed some 1700% and the Dow slipped 8%.

Over the next 20 years, we saw real estate rise through the Reagan years and stocks through the 90s led by the technology sector.  The Dow climbed some 1300% over the 20 year span, while gold prices gave back bubble gains and then some, falling 65%.

What happened from 2000 to present is likely painfully fresh on everyone's mind.  The Dow is hanging on to slim gains of about 4% over an 11 year period.  Gold on the other hand has risen about 400%.  To neatly summarize, gold is up 34 fold over the last 39 years and the Dow is up 16 fold. 

Which has done a better job of preserving purchasing power over the long term?

If you asked anyone who owned gold during the entire period of 39 years, if they had any regrets for doing so, I would suspect only Gordon Brown would try to answer yes. 

I provide this illustration to make the case for gold as part of a long-term savings and retirement plan such as an IRA.  If you are going to put money away for the day you get the gold watch, why not have a portion of it in Gold or some other precious metal.  
However, retirement planning isn't just about saving money.  It's also about diversifying to avoid the economic erosion of your assets.  Here are some of the pitfalls you can avoid.

• Rising inflation • Rising interest rates • War and world tensions • A volatile stock market • Bank defaults • Weakening dollar.

Inflation, in particular, can wither away a plan's assets. For example, say you contribute $10,000 a year for twenty years at 8% interest.

With no inflation, you'll receive $50,338 a year for twenty retirement years. But with 5% inflation (the average rate over the past twenty years), you'd only get $18,602 per year for twenty retirement years.

Clearly, you should plan for inflation and position yourself to survive or take advantage of crises as they present themselves.

To learn more, visit Lear Capital to request FREE information and take advantage of a myriad of FREE information services.  See why gold may now be just on the first leg of another historic rise. src="http://ad.doubleclick.net/ad/hgn.zerohedge/;post=1;sz=1x1;ord=[timestamp] ?" border="0" alt="" />

 

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Sat, 03/19/2011 - 17:22 | 1076578 traderjoe
traderjoe's picture

Isn't there another place to put these sponsored posts then in the regular news flow. Fwiw, not a fan.

Sat, 03/19/2011 - 17:39 | 1076668 Tyler Durden
Tyler Durden's picture

Would a paywall be preferable?

Sat, 03/19/2011 - 18:35 | 1076851 traderjoe
traderjoe's picture

Just to show you that I want to put my FRN's where my mouth is, I just re-upped my 'subscription' with a donation. 

I totally get that money has to flow in to pay for time, resources, expenses, etc. And I very much enjoy what you've done - both in terms of news flow and creating a community. You, and the comments, are my first source for news. I thank you for that. 

From the cheap seats, I just wonder if there is a better place to put the sponsored posts. I think making them from ZeroHedge was an improvement. It is an ad though. In a newspaper, ads are clearly separated from editorial or news. 

So, my thought/comment is not about the existence of sponsored posts - but in their placement and their obviousness for the paid nature of the content. 

Again, just some thoughts. Cheers!

Sat, 03/19/2011 - 22:16 | 1077456 snowball777
snowball777's picture

"Sponsored post by" was too obtuse for you? C'mon...those aren't nits...you're just poking the air like a jackass.

Sun, 03/20/2011 - 00:26 | 1077743 GoldenDragon
GoldenDragon's picture

The "sponsored by" lead is clear enough.  We all know what we're reading.

No, Tyler, we do not prefer a pay wall.  I appreciate the sponsor supported news.  Thank you!

Sat, 03/19/2011 - 18:39 | 1076869 oygevalt
oygevalt's picture

I posted this on the original Lear Capital post, but in Tyler's defense - a friend who is involved in a distant cousin to this type of information service was advised that a paywall web site could generate some real legal problems, in the event anyone were to post what could be considered "insider" information that was not in a relentlessly public forum.  I have no idea what Tyler might have been counseled, or if this advice is universally applicable, but it's a thought as to why he hasn't put up a paywall.

Sat, 03/19/2011 - 19:20 | 1077018 Sudden Debt
Sudden Debt's picture

Just ignore it TD.

Everybody should at least click 2 ads every time they visit ZH. I do :)

 

Sat, 03/19/2011 - 20:41 | 1077198 TeMpTeK
TeMpTeK's picture

@Sudden Debt

"Everybody should at least click 2 ads every time they visit ZH. I do :)"

Ok so when Tylers advertiser pays more for bogus cliks than they receive in actual revenue this is somehow good for ZH and the advertiser??.

FYI..above the fold banner ads dont usually pay per clicks anymore they pay based on the amount of pageviews..So if you want to do the right thing.. then donate.. and keep coming back to ZH read the excellent content and share with your friends.. the more people reading ZH articles the better for ZH. Mindless ad-clicking does nobody any good..

Sat, 03/19/2011 - 20:50 | 1077232 Yen Cross
Yen Cross's picture

Sudden Debt. I invite your effervescence in any whimsical debate. I'm just not getting it?

Sun, 03/20/2011 - 09:41 | 1078415 Pegasus Muse
Pegasus Muse's picture

Everybody should at least click 2 ads every time they visit ZH. I do :)

I do too, especially if it has Cramer's ugly mug on it.

Sat, 03/19/2011 - 19:34 | 1077059 Charlie Brown
Charlie Brown's picture

What would be TRULY preferable is NO IRA AT ALL.

They're all going to be seized, and probably soon. Look, IRA's, 401K plans (and the like) have something on the order of $10 Trillion in aggregate assets -- and it's generally in cash (& cash equivs).

At some point, the US Gov't will fold the whole thing into the FICA/MED system BECAUSE THEY WILL HAVE NO OTHER CHOICE.

THINK, people.

$10 Trillion.

Mostly in cash, and cash equivs.

And all they need to do is to change one sentence in the US Tax code.

And they'll own the whole thing.

AND THEY WILL SOON HAVE NO OTHER CHOICE BUT TO TAKE IT ALL.

Go ahead, junk me if you like.

I'm right, though.

I'm totally, completely, 100% correct.

Your IRA is already gone, pal.

You just don't know it yet.

Sun, 03/20/2011 - 16:54 | 1079512 Birddog
Birddog's picture

yeah, I'm concerned about that possibility myself, although I don't have enough info to pay the 10% penalty and and tax on my roth IRA...do you know of any developing threats to rule changes or the Fed gov attempting some forced allocation of Ira/401k funds?

Sat, 03/19/2011 - 18:30 | 1076840 Montgomery Burns
Montgomery Burns's picture

Don't read them then. Simple

Sat, 03/19/2011 - 18:37 | 1076846 Pseudo Anonym
Pseudo Anonym's picture

sponsored posts

you are an idiot. actually, my apologies. you are a fucked up union cocksucker accustomed to entitlements. you think you are entitled to everything just because you pay union fees. you make me sick.

Sat, 03/19/2011 - 18:38 | 1076865 traderjoe
traderjoe's picture

Who the fuck are you talking to? You talking to me? Your comment makes no sense at all. 

Sat, 03/19/2011 - 19:43 | 1077093 Pseudo Anonym
Pseudo Anonym's picture

Who the fuck are you talking to? You talking to me?

yes, I am addressing you! You exhibit the same ignorance as union representatives that come to me demanding "something and anything" just because they wear a union badge. you think that because you donated $1 to ZH that you can dictate ZH policy. don't you?

Sat, 03/19/2011 - 20:52 | 1077235 Yen Cross
Yen Cross's picture

I like you both! Lets call it a truce?

Sat, 03/19/2011 - 23:02 | 1077526 yabyum
yabyum's picture

__________________------

Sat, 03/19/2011 - 23:05 | 1077535 yabyum
yabyum's picture

Pseudo. Go fuck your self........peace OUT.

Sat, 03/19/2011 - 17:24 | 1076590 Papasmurf
Papasmurf's picture

Gold serves no purpose if it's in someone else's hands.

Sat, 03/19/2011 - 17:37 | 1076663 ipud
ipud's picture

Denninger thinks it's the utimate buzz kill

http://www.youtube.com/watch?v=XsLu6iPi3pc

Sat, 03/19/2011 - 23:14 | 1077222 akak
akak's picture

Hasn't Denninger and his misguided crew managed to sail over the edge of the flat earth on their deflationary voyage of the damned yet?  Those incompetent deflationists!  They probably ran aground on the Shoals of Fiat once again --- and just within sight of the Isles of Gold, too, which they willfully ignored, even though all their charts clearly showed them as the only safe haven within that financially storm-tossed sea.

Sat, 03/19/2011 - 17:37 | 1076664 PenchantForHoarding
PenchantForHoarding's picture

This is an ad, no?

 

Boo.

Sat, 03/19/2011 - 17:48 | 1076697 Sudden Debt
Sudden Debt's picture

I will probably keep my silver stash as a retirment safe above my other pension savings and government pension.

Unless it goes over gold, then I'll sell :)

Sat, 03/19/2011 - 20:55 | 1077242 Yen Cross
Yen Cross's picture

Probably? Pension? Tell the truth! Retired Fed worker?

Sat, 03/19/2011 - 18:08 | 1076752 max2205
max2205's picture

Recommending gold at these levels is going to kill passive investors

Sat, 03/19/2011 - 19:05 | 1076971 Big Corked Boots
Big Corked Boots's picture

With the gyrations and manipulations of markets these last few years, passive investors are dead meat no matter what they are invested in. Note how so many people have given up on the markets...

Sat, 03/19/2011 - 18:17 | 1076800 TaxSlave
TaxSlave's picture

Get physical!

Sat, 03/19/2011 - 18:27 | 1076832 Broomer
Broomer's picture

It isn't tangible when it isn't in your hands. Gold and silver savings in an IRA account must be kept in a bank vault, happily sitting for confiscation.

Sat, 03/19/2011 - 18:31 | 1076841 Vint Slugs
Vint Slugs's picture

This is the same tired old saw that retail stock brokers have been preaching for years about commodities funds:  they provide stability to a "balanced" portfolio.  That means you own some commodities, in this case apparently gold, but you also own a stable of other investments.  If you put everything in a gold IRA, that's a different story.  Then you completely change the volatility component of your portfolio.

Others above have it right:  In the case of gold, if you don't control physical, you don't control.

 

Sat, 03/19/2011 - 20:14 | 1077148 Hacked Economy
Hacked Economy's picture

+1

Or silver.  Then when the silver/gold ratio falls (and it will...just wait for it), trade some of the white stuff for the yellow stuff.

Sat, 03/19/2011 - 20:38 | 1077207 Charlie Brown
Charlie Brown's picture

Not in the USA.

"Stock" brokers in the US can not act as an agent in a commodity trade of any sort -- in fact, they legally can't even do so much as give you a simple quote over the phone on ANY commodity.

Conversely, a commodity broker can not trade stocks for you (nor can he offer quotes).

The licenses are fully separate.

/spent 3 years on the street
//was a broker at a couple of firms
///understand the rules just fine

Sat, 03/19/2011 - 18:42 | 1076878 count_zero
count_zero's picture

25% t-bills

25% TLT

25% IAU (physical preferred)

25% VTI

Done.

Sat, 03/19/2011 - 18:43 | 1076887 monopoly
monopoly's picture

"Is this an ad", passive investors killed, "put this someplace else" And Denniger who has been negative on gold since 850 or so. As long as I see idiotic posts like these I know we are no where near a top. And I doubt if when we get to the price where gold, silver belong, it wil decline from there but  they will take there place as part of a Real Currency.

What is wrong with you people. You see your dollar and your nation being destroyed, your purchasing power being wiped out, the elite becoming even wealthier as your standard of living deteriorates with few "quality jobs" being produced, Obama, The Bernank and Geithner in charge and you think the above is an ad.

Get down and thank Tyler for posting intellingent feeds as the above.

And to confirm how i feel about being killed with my gold, my last purchase was on 3/15/11 with gold at 1389 and Silver at 33.99 spot. And I contribute to this site on a regular basis. My sanity requires it.

Beyond words all, just beyond words. Sell my gold. Geesh!

Sat, 03/19/2011 - 19:10 | 1076987 Basia
Basia's picture

This article takes away from the credibility of this site.

Sat, 03/19/2011 - 19:41 | 1077085 BlakeFelix
BlakeFelix's picture

Ya. If this site was entirely made up of such ads its credibility would sink to about where everyone else is. TD needs some fiat, and he has plenty of credibility. S'all good.

Sat, 03/19/2011 - 20:02 | 1077122 technovelist
technovelist's picture

I don't mind appropriate ads, and this one seems appropriate to me. In any event, the bandwidth this site requires to keep it running is staggering to contemplate, and is undoubtedly expensive. Someone has to pay for it...

Sun, 03/20/2011 - 00:47 | 1077801 RockyRacoon
RockyRacoon's picture

You are correct.  Someone has to pay for it:

Donate To Zero Hedge

Sat, 03/19/2011 - 20:24 | 1077167 redpill
redpill's picture

Half these sponsored posts wind up being punching bags anyway.  Good for you for getting them to pay for it, but I figure most folks here are too suspicious of damn near everything at this point to be drawn in by an ad.

 

Sat, 03/19/2011 - 21:08 | 1077272 Charlie Brown
Charlie Brown's picture

“Some have suggested the creation of Guaranteed Retirement Accounts (GRAs), which would give workers a simple way to invest a portion of their retirement savings in an account that was free of inflation and market risk, and in some versions under discussion, would guarantee a specified real return above the rate of inflation.”

FREE OF MARKET RISK...?

Yeah, you know what that means. That means that retirement will all be under the control of the Federal Government.

http://www.whitehouse.gov/sites/default/files/microsites/100226-annual-r...

There's the link.

It's on page 28.

More...?

“While defined contribution plans have some strengths relative to defined benefit plans, participants in defined contribution plans bear the investment risk because there is no promise by the employer as to the adequacy of the account balance that will be available or the income stream that can be provided after retirement.” .... “The Agencies are considering whether it would be appropriate for them to take future steps for them to facilitate access to, and use of, lifetime income or other arrangements designed to provide designed to provide a stream of income after retirement.”

Heh... that one made it to the Federal Register last year.

http://www.irs.gov/irb/2010-11_IRB/ar10.html

There is "no promise by the employer," you see, "as to the adequacy of their account balance" w/re "income stream" after retirement.

IT'S COMING.

Because THEY KNOW WHAT'S GOOD FOR YOU.

Even more than YOU know what's good for you.

$10 Trillion.

In cash, and equivs.

They see it there.

And they are, indeed, drooling over it.

YOUR IRA'S AND 401K's ARE ALREADY GONE.

YOU JUST DON'T KNOW IT YET.

Sun, 03/20/2011 - 00:49 | 1077804 gwar5
gwar5's picture

Afraid you might be right. If our dear leaders talk about it, it tends to happen. And they've been talking about confiscating IRA's like Argentina did. They just look around to see where the money is sitting and then figure out how to get it. They're definitely giving IRAs and 401Ks the stink eye. But they'll wait for the next big crises to do it to avoid an armed revolt.

Get a self directed IRA and buy foreign property, or, a big boat with a proper mariner's lien as such liens supercede government liens. Why make it easy..... do it early, do it often.

Sun, 03/20/2011 - 00:51 | 1077806 RockyRacoon
RockyRacoon's picture

Yup.  Just look at where those contributed dollars are "invested" or held.

Didja think they were holding your money is some sort of passbook equivalent?

Charlie's right -- the money is gone already.

Sat, 03/19/2011 - 22:05 | 1077430 prophet
prophet's picture

A couple of things.

1.  Sponsored Posts

Brave and innovative.  For both the advertiser and the host.  I think the objections would subside a bit if the main page story head said "Sponsored Post:" as is done with "Guest Post:".

I'm sure once the coffers fill a bit you will see another iteration of placement improvements, post management for accountees (or whatever you call us'ns), and many new and exciting site navigation improvements like themed thread management and annotated feed links.  (Just think, you may be able to set a preference that excludes certain accountees from your view!  I'm sure some of you would like that.  No doubt the owner is taking notes about slash-dot functionality, like requests, et. al.)

[lord help us all when they link into the fb collective, especially before the infrastructure is ready] 

2.  PMs in IRAs

Given the tax treatment of both paper and physical it may be worth considering a deferred approach.

Sat, 03/19/2011 - 22:15 | 1077451 New World Chaos
New World Chaos's picture

Call NAFEP and get them to turn your 401(k) into a self-directed IRA LLC.  You can take delivery!

Sat, 03/19/2011 - 23:23 | 1077571 HellFish
HellFish's picture

How about defining that large acronym and adding details - if you don't mind.

 

Oh and as to the paid advertising posts - I think they're fine - they are labelled as such.  If you're worried about the credibility around here you'd need to moderate the political discussions - the anti- semitism and progrssive liberal crap is over the top.

Sun, 03/20/2011 - 00:34 | 1077762 gwar5
gwar5's picture

I've never heard of NAFEP either, but doesn't matter. There are lots of self-directed IRA outfits that can set you up. Google "self directed IRA" and see -- it's a cottage industry the banks won't tell you about. Shop it around for low transaction fees, set up fees, and maintainence fees. They're not bad, couple thousand to set up and couple hundred a year after that if you don't have a high # of transactions.

Get a self-directed and then you can form an LLC under the IRA. As an LLC you can do whatever any other LLC does as a vehicle to buy real estate for rentals, foreign property, partnership with your buddy's LLC, buy out another LLCs.....  just about anything except things like baseball cards and antique furniture. Follow the rules -- eg., can't buy a foreclosure property and live in it. So keep it clean or be careful.

Sun, 03/20/2011 - 00:45 | 1077791 New World Chaos
New World Chaos's picture

they are the National Association of Financial and Estate Planning, and they are one of the main providers of self-directed IRAs.  You can get a Checkbook IRA LLC, which is a shell company where you have the checkbook.  Most people use it for real estate.

http://www.nafep.com/ICO/self_directed_ira.htm

It cost me about $3000 in fees plus about two months of paper-shuffling while Ben frittered away my stash, and after that it's a couple hundred bucks plus filling out some forms every year until the government collapses.  You will have to balance this against the size of your stash and your paranoia level when considering if a rollover is worth it.

Sun, 03/20/2011 - 00:18 | 1077719 gwar5
gwar5's picture

Good call on the self-directed, I've been doing it, and it's the way to go. Foreign property, too.

I wasn't sure about taking delivery of PMs insofar as I thought the designated custodian had to hold such items. I'd be happy to be wrong on that one. I figured other compliant ways to do essentially the same.

Sun, 03/20/2011 - 00:22 | 1077727 Jasper M
Jasper M's picture

"Historically, gold has moved counter to the direction of stocks stocks . . . "

Looked at a chart much lately? Jeez. 

Sun, 03/20/2011 - 00:24 | 1077736 Auberon Herbert
Auberon Herbert's picture

There's no point in buying gold if you're not going to store it someplace safe. An IRA ranks only slightly above the dashboard of your crack addict sister's car in a public parking lot in terms of safe places to store gold.

Sun, 03/20/2011 - 04:00 | 1078114 SME MOFO
SME MOFO's picture

you can't smoke gold, so what's the worry?

Do NOT follow this link or you will be banned from the site!