Fairfax, VA (PRWEB) December 16, 2011
Richard Geller, CEO and managing director of FinancialSuccessInstitute.org, announced today, "The Institute is concerned the loss of customer funds by MF Global is very possible with any financial institution other than FDIC insured banks. The Gold IRA or 401K likely eliminates this risk when it's correctly structured. Yesterday, the FinancialSuccessInstitute.org expert panel released their preliminary finding about why a Gold IRA or 401K eliminates risks inherent with financial institutions that gamble with customers' investment funds."
The FinancialSuccessInstitute.org's mission is identifying highly secured investments for investors. The institute's Gold IRA article outlines how the MF Global bankruptcy can happen to any financial firm at any time. A Dec. 14 Reuters article states the MF Global bankruptcy was caused by a $6.3 million investment made in European sovereign debt using customer funds without first disclosing the investment. The Reuters article cites a bankruptcy trustee inh the case as saying as much as $1.2 billion is unlikely to be recovered."
Geller stated, "At the heart of the Institute's study is finding the most secure investment possible while delivering a good return. We believe it's one where the investor physically controls the asset in the way a Gold IRA or 401K might be structured. A Gold IRA or 401K could feasibly be assigned ownership of the gold. The Gold IRA might then register a bank safety deposit box in the name of the Gold IRA to physically hold gold without a third party custodian having any access to the gold. The owner-investor of the Gold IRA would possibly have exclusive access."
Geller continues, "A Gold IRA appears to make sense because gold has increased in value on average 18% annually since 2000. No other commonly held asset class is able to make this claim other than the Gold IRA or 401K."
Geller points out, "A Gold IRA or 401K will likely have liquid cash on occasion. Properly structuring a Gold IRA would notionally involve opening a savings account or certificate of deposit at an FDIC insured bank in the name of the Gold IRA for the purpose of holding cash. This could provide the Gold IRA the highest level of security available."
Geller emphasizes, "Those not fully understanding the importance of physically holding gold in a Gold IRA need to read the Gold IRA article explaining why all investor funds held by non-FDIC financial institutes are at risk in the same manner MF Global customers were surprised to find themselves. Another reason the Gold IRA appears to make sense is the risk that stock markets will again bottom-out over a negative news headline - the same headline is likely to drive up the value of a Gold IRA. Along with reduced risk, another benefit often associated with a Gold IRA is it has always been a hedge against inflation. Overall, the expert panel sees great promise in the Gold IRA as an ultra-low risk investment vehicle."
Geller summarizes the FinancialSuccessInstitute.org's announcement of the expert panel study of the Gold IRA this way, "The panel is aware of other highly secure investment vehicles rather than the Gold IRA. For example, the institute educates investors about using a self directed 401K to own real estate. These are highly secure but not as secure as the Gold IRA. Investors spooked by the MF Global bankruptcy should educate themselves about the Gold IRA and other highly secure investment vehicles by visiting FinancialSuccessInstitute.org today."