Month: April 2022

One of the most important parts of being a CEO is learning how to motivate your team. Earlier this month, I wrote about how the spring season presents a great opportunity to get to work on your finances—a bit of “spring cleaning” to help prepare your portfolio for whatever the rest of the year may have in store.

For some, the idea of freshening up their portfolio may be enough to motivate them to sit down, reexamine their unique financial situation, and see where new opportunities may lie. For others, some additional motivation or help understanding “Why now?” may be useful.

With that in mind, these three big news stories happening right now may help motivate you to spring into action on your portfolio.

The Federal Reserve is increasing interest rates, but some analysts are saying it may be too late to stop a recession.

For many of us, uncertainty can be our worst enemy. Not knowing what will happen can cause us to freeze up or experience incredible levels of stress. But not if we take action.

For some time now, we’ve been waiting and watching as the Federal Reserve has made plans to increase interest rates, which have been kept incredibly low to help bolster economic growth. But now that the Federal Reserve is updating its policies, some worry that it may be too little, too late to stop a recession.

According to a March 29, 2022, article by Bloomberg, the Federal Reserve has “pivoted toward an even more aggressive plan of interest-rate hikes than they signaled earlier this month to ensure price increases cool.” However, CNBC writes, “Economist Mohamed El-Erian warned that the Fed’s efforts to combat inflation could tip the economy into recession,” citing among other things a “cost-of-living crisis.”

I believe that in a world where economic uncertainty feels like it’s fast becoming the norm, taking actions against that uncertainty should become the norm right along with it. Economic uncertainty is not something to fear—it signals that now may be a good time to spring into action.

We still don’t know how the continuing conflict in Eastern Europe may impact our portfolios.

Another reason to consider taking action is the additional uncertainty caused by the ongoing conflict in Ukraine. In fact, according to the Bloomberg article mentioned above, the conflict may have been one of the reasons the Federal Reserve held off from making a larger initial interest rate increase.

A March 21, 2022, article by Fox Business states that the Russia-Ukraine conflict “will likely hit economic growth globally and here at home.” The article continues by saying, “The majority of [National Association of Business Economics] economists see inflation staying above 3% through 2023.” The New York Times seems to agree: “The global economy is poised to be sent on yet another unpredictable course.”

In other words, it may not be economic factors just here at home that could impact your portfolio. With multiple layers of uncertainty hitting markets at the same time, you may wish to examine your diversification strategy.

As this uncertainty continues, interest in and demand for precious metals is rising.

If your first thought during times of economic uncertainty is to turn to non-paper-based assets like precious metals, you’re not alone.

Earlier this month, on March 12, 2022, Bloomberg reported that gold was “playing its age-old role as a safe haven in times of wars and crisis, and people all over the world are piling in.” On March 21, 2022, CNBC reported, “Fighting in Ukraine boosted demand for safe-haven bullion,” and according to Craig Erlam, senior market analyst at OANDA, “Another escalation around Ukraine will drive significant safe-haven flows to gold, even inflation hedge moves if we see sanctions that trigger another commodity surge.”

Consider, too, that Russia is the world’s largest supplier of palladium and the second-largest supplier of platinum. If sanctions are put on Russian precious metal exports or if the country reduces its output, it could impact both demand and prices for these precious metals.

In times like these, I’ve always preferred being proacting over reactive. There’s a peace of mind that comes from knowing you’re being proactive to protect yourself and your loved ones—a level of comfort from knowing you’ve taken well-researched steps just in case. Combine this with the other reasons listed above, and I believe there’s a very strong case for springing into action on your portfolio today.

The post If You’re Waiting to Spring Into Action on Your Portfolio, Here Are Three Things to Consider. appeared first on U.S. Money Reserve.

“We don’t recommend you ever leave your [401k plan] behind with your former employer or roll it into the new company’s 401k plan.”

— Sr. Precious Metals Advisor Steve Rand

More than half of US workers invest in an employer-based retirement account¹ with 401k plans being the most common. Of all 401k benefits, the most compelling is that many employers will match retirement contributions of their employees which is essentially free money.

However, what should you do with your 401k, 403b, 457 plan or TSP after leaving a job? You’ve worked hard for that money, so you want to make the most of it. Watch the video above to see what IRA Liaison Michelle Ellis and Sr. Precious Metals Advisor Steve Rand have to say about 401k rollovers when leaving a job (watch on YouTube here).

Should I Rollover My 401k to New Employer?

Starting a new job is an equally exciting and stressful time. You have the exhilaration of embarking on a new career, but you also have to worry about making a smooth transfer. One of the most important questions for investors during this transition phase is what to do with a 401k after leaving a job.

You may not want to leave a 401k with an old employer as people have had retirement accounts frozen for extended periods of time without being able to access their funds. However, it may not be the best choice to rollover your current 401k plan to a new employer either. Despite being a common move when transitioning careers, this 401k rollover comes with some investment downsides of its own.

Investors lose control of their plans

There’s a window of opportunity to take full control of your retirement plan when switching jobs. However, that chance is gone when you finalize the 401k rollover to your next employer. Since you’re working hard for the investments and you’ll be the one living off of it, it’s ideal to remain in full control of your retirement funds.

Learn How to Avoid Costly Rookie Mistakes & Invest in Gold Like a Pro!

Get Free Gold Investor Guide

There are extremely limited investment options

401k plans are highly restricted in the type of investments they permit. Investors are pretty much stuck with stocks and bonds which are great asset classes when part of a diverse portfolio. However, these limited investment options leave people vulnerable to bouts of inflation and overall market downturns.

The company’s performance is a risk factor

Having an employer set up and match contributions to a 401k feels great, but this ties the performance of your retirement fund to a company. If your employer were to go bankrupt or merge with another company, you have less control over what happens to your account. As mentioned before, frozen retirement accounts aren’t unheard of.

Why Rollover to a Self-Directed Precious Metals IRA

If you should avoid leaving a 401k behind with an old employer but shouldn’t rollover to a new employer either, what should you do with a retirement account when switching jobs? We highly suggest transitioning to a self-directed precious metals IRA to take full advantage of the benefits offered by these plans.

You’ll have true diversity

Every investor understands the importance of portfolio diversity. The more dynamic your investments, the less risk you have overall. This is especially important in retirement when you’re living off investments and savings. A self-directed precious metals IRA allows investors to invest in physical gold, silver, and other metals for greater diversity.

The fees are transparent

It’s easy for investors to lose track of 401k fees which can add up over time, eating a chunk out of their retirement funds. On the other hand, precious metals IRAs have upfront and transparent fees attached which are lower overall than their 401k counterparts. That means more money in your pocket for retirement.

Your retirement becomes an inflation hedge

Gold, silver, and other metals have been proven to be reliable hedges against inflation unlike stocks, bonds, and other USD-backed assets. With a physical precious metals IRA, you’re gaining protection from market volatility the ability to protect and leverage inflation.

Learn More About a Precious Metals IRA

More and more people are starting to see the benefits of a precious metals IRA over the more common 401k. A self-directed Gold & Silver IRA offers diversity from paper assets, greater protection and more control overall than other retirement accounts. Plus, setting up a precious metals IRA is easier than you might think, especially with guidance and support from an IRA liaison at Scottsdale Bullion & Coin.

We’ve seen a growing demand for precious metals IRAs as inflation reaches a 40-year highs² and the tax year rolls to a close. Now is the perfect time to set up a precious metals IRA since it’s still not too late to make your contributions for 2021. Don’t wait, as this window is about to close.

Interested in learning more about investing in a precious metals IRA? Watch the video below for a clear explanation of how to rollover your retirement savings into physical gold and silver.