Private Storage, A Precious Metals IRA Is As easy As 1, 2, 3.

1. Get Educated:

   Our representatives at Landmark Capital have decades of experience and their knowledge surpasses most. They will educate you on the simple process and answer all of your questions.

2. Funding Your Account:

   You can transfer funds from any existing IRA, 401K, or other retirement accounts. Our IRA specialists will prepare all of the necessary forms and initiate the process for you.

3. Purchase and Receive Your Metals:

   Deciding which precious metals to purchase in your retirement is made simple when working with your representative at Landmark Capital. All of your precious metals options are discussed in detail, and specifically chosen based upon your investment goals. You will be able to gain the knowledge and insight to purchase the metals that best suit you. At that point your metals will be shipped directly to you.

   

Why have physical precious metals in your IRA?

Gold is essential to a well diversified portfolio. Gold brings security and peace of mind, especially when fiat currencies are threatened by financial crises or other such events. This is why many people are now converting some parts of their wealth into gold, be this in coins or bars.

The Internal Revenue Service initially prohibited collectible coins and precious metals as part of Individual Retirement Account investments, but this changed with the Taxpayer Relief Act of 1997, which introduced changes to allow the inclusion of gold as well as several other precious metals to shore up IRAs.

1. Gold vs. the Stock Market

   When it comes to retirement, you want to make sure your money is there for you. Diversifying your portfolio with precious metals keeps your money out of the hands of Wall Street and Washington and puts it into your hands. Currently, many investors believe the stock market is overvalued with signs there is a bubble that may burst soon. Prior to 2007 investors that diversified their IRA into precious metals experienced in 2008 and 2009 not a downturn of 40%, and some even greater in stocks, but rather an increase of 72% in precious metals.

2. Gold vs. the National Debt

   Our National Debt has soared becoming unmanageable with no plans in Washington to control it. Adding to that there are multiple unfunded government accounts such as Social Security and Medicare, creating a liability of over 50 trillion dollars. Many economist and even politicians believe this will eventually trigger a panic causing massive inflation or government interventions. Needing further bailouts will add to our national debt, which is expected to increase to over 20 Trillion by the end of 2016. At current levels many believe the national debt has become unsustainable and unmanageable, which may result in a panic setting into the market. Physical assets like gold have often been viewed as independent of market cycles and a hedge against market uncertainty.

3. Gold vs. the U.S. Dollar

   Many investors are waking up to the fact that over time the dollar has consistently lost purchasing power due to inflation and the government’s Quantitative Easing (QE) programs. Inflation is a nasty word because it erodes the purchasing power of the U.S. dollar. It means that the consumer goods we buy on a day-to-day basis, such as food, clothing, and gasoline, require more dollars each year to buy. In the year 1920, a one ounce gold coin and a $20 bill were equal in value. At that time, they both would have bought a man’s custom-tailored suit. However, after inflation, that same gold coin can still buy a custom-tailored suit, but the

   $20 bill cannot. Gold has long been a true hedge against inflation.

4. Gold vs. the Bail In

   This might be the most important reason to own and hold physical gold and silver in your retirement. The government is looking to seize your retirement accounts by doing what is called a Bail In. It has passed laws and has made several moves to accomplish this. Already this has happened in 14 countries since 2008.

   Landmark Capital has wrote a white paper on this titled “The Coming Bail In”, which gives the facts.

   Many believe these problems could cripple retirement plans and other savings through government seizure. Our clients believe the best way to protect their wealth from this threat is to own physical precious metals in their retirement accounts.

What is an IRA?

An IRA is a tax-deferred financial shelter where an individual can contribute a portion of their income. These contributions can be tax-deductible and investment earnings are not taxable until they are withdrawn. You can access your IRA assets any time, yet before you turn 59 1/2 you will be penalized.

Assets are allowed in an IRA, these include stocks, bonds, mutual funds, money market accounts and even real estate. Precious metals and coins were previously prohibited, but with the Tax Payer Relief Act of 1997 an investor can now put gold into an IRA account to improve the flexibility of his or her holdings and also for added security.

You can open an IRA with certain banks, insurance companies, or other financial institutions. However, most of them cannot accommodate gold and silver in your IRA and are not experienced in this area. We have a qualified Trustee that is simple to work with.

What is a Self-Directed IRA?

The way investors can own gold in their IRA is through a Self-Directed IRA. A Self-Directed IRA gives you the power to decide exactly what you invest in. Self-Directed IRAs allow individuals to safely own physical precious metals in their retirement.

Which accounts can be converted to a Self-Directed Precious Metals IRA?

All retirement accounts are qualified to roll or transfer into a Gold and Silver IRA such as, Traditional, Roth, SEP, Simple, and Beneficiary/Inherited IRA. Other accounts, but not limited to this list, are eligible for a rollover include a 401(k), 403(b), 457(b) Deferred Compensation Plan, Pension Plan, and Thrift Savings Plan. No matter what asset you have in these accounts such as: stocks, bonds, annuities, or cash, your Landmark Capital representative can assist you in getting those funds transferred over to your Self Directed IRA.

Explaining the Process

When you have an IRA with physical metals in it you have two choices on where the metals are stored. A Government Approved National Storage Plan or a Local Storage Plan. In a National Storage Plan the gold and silver does not get delivered to you, rather they are stored in a third party government approved depository. With this set up there are storage fees that apply and there is no need to have an LLC which is needed in a Local Storage Plan. In a Local Storage Plan you receive your metals and hold them. This is accomplished by setting up an LLC properly.

To understand this simple process, let’s first take a look at an existing retirement account. In that retirement account it can purchase shares in a company, called stocks. That company has a manager that makes decisions on behalf of that company. That manager buys assets on behalf of the company and receives those assets. Investors then buy shares in that company.

Retirement Account

A gold and silver IRA, that has physical metals in it using a Local Storage Plan, is done the same way. A company is set up called an LLC that you would be the manager of. Your IRA buys shares (or what is called membership units) in your LLC. You, the Manager of the LLC, buys the physical metals, and you, the Manager, receives the metals on behalf of the company. Most of our clients use this option since it allows them more freedom in receiving metals through the LLC without a distribution or a tax liability.

Local Storage Plan

Private Storage

The reason why most of our clienst choose this way of investing in their IRA is because there are multiple benefits. It is more economical since you no longer have a storage fee. You have more freedom of the assets you can now invest in. This way of investing puts control of the asset in the investors hands and gives multiple layers of protection that insulates you from a government Bail In. Also unlike investing in stocks and mutual funds in retirements such as 401(k)s and annuities, and some IRA’s, the fees are significantly less since you are not trading your portfolio constantly.

Distributions in a Self-Directed IRA

When you have a retirement, periodically distributions are made, as well as required minimum distributions. RMD’s get triggered currently at age 70 1/2. The required dollar amount is determined by IRS guidelines based upon your age and the retirement account value. Normal distributions as well as Required Minimum Distributions (RMD), are handled the same way. When RMD goes into effect you have three choices on how you wish to recieve your RMD.

1. Distribution selling the asset to cash. Take a distribution as normal by selling physical precious metals (you would send them to Landmark Capital if you have an LLC) then we liquidate them. The funds then go to the trustee and the trustee would issue you your distribution check. This type of distribution is done when the investor would need the monies.

2. Distribution in Kind. In this type of distribution the physical asset is not sold but the value of the metal is determined. That physical metal comes out from under the retirement account and is now outside of the retirement account legally. The value of the distribution is reported and no check is issued since this is called a Distribution in Kind. If you have chosen already to hold your metals with the LLC option then the metals don’t leave your hands just the ownership changes from the IRA/LLC to you. This type of distribution is done when a person doesn’t need the monies and wants to remain in physical precious metals.

3. Combination. This choice of a distribution would be a combination between choice No.1 and No.2 depending on how much you need in cash.

   All taxes still do apply no matter which type of distribution you take.

Legality of Self-Directed IRA’s and LLC’s

The Self-Directed IRA Structure has been in use for some 35 years, however, the concept of using an entity owned by an IRA to make an investment was first reviewed by the Tax Court in Swanson V. Commissioner 106 T.C. 76 (1996). In Swanson, the Tax Court, in ruling against the IRS, held that the funding of a new entity by an IRA for self-directing assets was a permitted transaction and not prohibited pursuant to Code Section 4975. The Swanson Case was later affirmed by the IRS in Field Service Advice Memorandum (FSA) 200128011.

Swanson V. Commissioner 106 T.C. 76 (1996)

The few highlighted facts of Swanson vs the IRS Commissioner are as follows:

1. Mr. Swanson was the sole shareholder of H & S Swansons’ Tool Company (Swansons’ Tool).

2. Mr. Swanson arranged for the organization of Swansons’ Worldwide, Inc. (Worldwide). Mr. Swanson was named as president and director of Worldwide. Mr. Swanson also arranged for the creation of an individual retirement account (IRA #1).

3. Mr. Swanson directed the custodian of his IRA to execute a subscription agreement for 2,500 shares of Worldwide original issued stock. The shares were subsequently issued to IRA #1, which became the sole shareholder of Worldwide.

Frequently Asked Questions

How difficult is this annual report since I have never done one before?

All retirements are required to send an annual report to the IRS that lists the dollar value of the retirement. For a non-Self-Directed IRA, reports are done automatically by the Trustee. This is done the same way but the Trustee would need to know the value. This is accomplished simply in 10 minutes with a worksheet that we provide you with.

What happens if I forgot to do the worksheet, does the IRS break my Self-Directed IRA and cause a tax liability?

No! The trustee will then send in the latest value of the IRA.

Since I have the metals in my possession, what keeps me from just selling that and “pocketing” the money?

The short answer is nothing. As the Manager of the LLC you are going to act in the best interest of the LLC. If you did this then that would be classified as Self-Dealing in the eyes of the IRS. This would cause a distribution and severe penalties would apply. This is your retirement and monies cannot be comingled with personal money.

How do I sell my metals, and if so would that be a distribution?

Landmark Capital provides a two way market, we will buy back your metals at whatever the market value is. Selling your metals in the IRA does not trigger a distribution since we would be sending the monies to the Trustee and you then would be in cash. Just like if you sold stock and now that money was in cash in a Money Market account.

Summary

Setting up a Self-Directed IRA is easy and cost effective working with Landmark Capital. It is a 3 step process. We have a saying here at Landmark Capital, “We are here to educate, facilitate, and to find value.”

1. Get Educated:

   We believe in education this is why we have provided this comprehensive report. The process is simple once you see how it works. Call your representative to ask any remaining questions you might have and they will also detail this simply for you.

2. Funding Your Account:

   Start the process of getting your money protected and in your control, by filling out the simple needed paperwork. We are here to facilitate this for you since we developed a proven process. We have made it easy for you, so that when you are talking with your representative they can ask you a few questions and all the paperwork will be filled out for you only requiring your signatures. Once you receive this paperwork our representative will go over the forms with you, which usually only takes 10 minutes. You then place those forms in the prepaid postage envelope, mail it, and you are done with this step. Landmark Capital will monitor the process of all the details for you. They will set up your account and LLC (if chosen) and the transfer of assets, keeping you informed at every step of the process.

3. Purchase Your Metals:

   The representatives at Landmark Capital are very knowledgeable and experienced in the precious metals industry. Purchasing is made easy with about a 10 minute interactive conversation with your representative. In this conversation you will be educated on the 3 distinct choices that the market offers. You will know the benefits and drawbacks of each market to get your eyes opened so you can make a simple, and knowledgeable choice, of what is best for you! This is your tailor made entry strategy. Our representative will find the best value for you to invest in the physical markets of precious metals.

Now that the physical metals have been purchased, they are ready to be shipped. If you have chosen the government approved National Storage Depository then your metals will be shipped directly to the Depository. If you have chosen to receive your metals through the LLC, then your metals will be shipped directly to you, and your representative will go over your metals with you when you receive them.

Call your representative to get started and protect your hard earned money today. Remember, if you take care of your money now then it will be there to take care of you!