The only way to avoid the risk of a third party going bankrupt is when gold in a 401K account is physically in a safety deposit box held directly by the 401K.
Fairfax, VA (PRWEB) December 04, 2011
In a November meeting of the Open Market Committee, the Federal Reserve declined establishing a specific inflation target fearing it would be interpreted as a priority over unemployment. The Financial Success Institute is perplexed why the Federal Reserve Board continues ignoring this very real threat to Americans' financial health. In response, the Institute is introducing a new way individuals can guard against inflation by acquiring and holding gold in 401K accounts.
CEO and Managing Director of the Institute, Richard Geller, cautioned today "It's an established economic principle that lowering interest rates makes more credit available. When more credit is available there is more money chasing products and services. Higher interest rates mean less money, thus less inflation. Manipulating rates is the Federal Reserve's tool for controlling inflation. The Federal Reserve's zero interest policy, along with hundreds of billions in government bailout funds, and no inflation target will lead to unbridled inflation. For that reason, the Financial Success Institute finds it essential that investors hold gold in 401K retirement accounts to hedge against the coming inflationary economy. There is no substitute for holding gold in 401K accounts."
Geller goes on to say "Sophisticated investors know to own gold in 401K accounts to hedge against inflation. For most people, retirement accounts are second only to their home as a storage vault for wealth. People storing wealth in Bank CDs or corporate stocks and bonds will see their wealth transferred to the ultra-wealthy and government in the coming inflation atrocity. Having gold in 401K accounts, also shields from capital gain tax. Something Congress threatens to raise in its deficit fight. There are many important reasons to have gold in 401K accounts."
Geller wants it "clearly understood it's about holding physical gold in 401K accounts. An ETF GLD is paper gold. It carries the same risks as any other paper investment. It's nothing more than a promise by someone to hold gold in a 401K account on behalf of another person. The only way to avoid the risk of a third party going bankrupt is when gold in a 401K account is physically in a safety deposit box held directly by the 401K. The Institute has structured just such a way everyone can hold gold in a 401K account."
Something else Geller is fast to point out is that "gold in a 401K is much safer than gold in an IRA. An IRA requires a third party custodian hold the gold. With gold in a 401K, investors have full control of the precious metal. Also, state and federal laws protecting IRAs are considerably weaker than protections afforded 401K accounts. The Financial Success Institute is serious about helping investors protect the gold inside a 401K account."
Less sophisticated investors are seldom aware it's possible to hold gold in a 401K that's 100% separate from an employer sponsored account. Even if people have an employer 401K, opening a separate 401K account with the individual as the custodian holding gold in the 401K without third party involvement is recommended.
Those needing to learn more about buying and holding gold in 401K accounts should read this in-depth article available from the Financial Success Institute. It opens eyes to the important need to hold gold in 401K accounts starting today.