In this article, we are going to review Lear Capital. Is Lear Capital a gold & silver scam? It might sound like a stupid question about a company that has been around since 1997, and is an industry leader. However, there are things you need to be aware of… Ok, with that said, let´s look into it!

Company: Lear Capital

Website: www.LearCapital.com/

Founder: Kevin D Demeritt

Price: Depends on your investment

Who is it for? Precious metal investors, retirees

Overall rating: (3.5 / 5)

Warning!

There are many scammers who will trick you into giving them your hard-earned cash. 

They employ high-pressure sales techniques like calling you every day. 

To avoid this, please do your own research before you decide what firm to invest with. 

You can do this by checking the reviews and ratings independent 3rd party consumer protection agencies give them.

To discover which investment firm consumers rate the highest… who won’t bother you with pushy sales calls… and who you can trust to protect and grow your wealth… then take a look at the #1 Recommended Gold & Silver IRA Dealer on our top-5 list.

See our #1 Recommended Gold & Silver Firm

See our Top-5 Gold Investment Companies 2022

With that being said, let´s continue with the review on Lear Capital!

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Gold has earned its place as one of the most valuable precious metals. Other metals trade for a higher price in comparison to gold. However, these do not carry the economic relevance attributed to gold. Since historical times, this precious metal has been used as the primary measure of value. Throughout the history of economics, gold has played a significant role as a currency and an estimate of value. Even today, gold continues to impact the global economy in various ways. The metal’s economic relevance has made it one of the most preferred means of protecting an investment’s value. In these uncertain times we are living through you might think it is a good idea to get your retirement savings into gold, at least a big part of it. That is why we will provide you with a 401k to Gold Rollover Guide further down in this article.

Intro

Every country keeps a gold reserve equal to the value of its monetary assets. This ensures gold has high control over the global economy. The result is the investor’s preference for the precious metal as a hedge against inflation. During challenging economic times, the purchasing strength of a currency falls. Using the dollar as an example, you buy fewer things with a dollar in unstable economic times as opposed to periods of stability. This can be attributed to the demand and supply mechanics affecting the price of a commodity. When a currency loses value, the commodity demand rises, and the ability to satisfy this demand falls. This causes products to increase in price. Gold follows the same tendency. Its price rises during challenging economic times.

Gold Investment Advantages

Investing in gold offers numerous advantages, non-existent in other forms of investment. However, this form of investment provides multiple options, some involving access to the physical gold and others that don’t give you the access. Each one of these options has different requirements as well as procedures and benefits. 

However, the fundamental trends that define the economic relevance of this precious metal still apply. The difference comes in the premiums paid during account opening with the various companies and trading platforms. Each company has its model of operation as well as strategies.

You should note that, though a gold investment provides a level of security to the value of your investment, the company you choose to invest in may compromise the security or profitability of your investment. Thus, before selecting a product or company, you should thoroughly research your preferences to ensure the best fit your investment needs.

**See our top-5 list of Gold & Silver IRA firms

How you can rollover to a gold IRA from a 401k

Step 1: Choose a suitable gold IRA

You can set up any type of gold IRA depending on the amount and investment preference of your funding. You can choose the conventional gold IRA, which uses pre-tax income, and Roth gold IRA which uses post-tax income contributions.

Step 2: Pick a custodian

Each custodian operates differently, especially on matters regarding required fees. When choosing a custodian, you should be keen on the services they offer and the cost of your income. You need a custodian offering a self-directed IRA for the physical gold investment. If you prefer to invest in physical gold, you should only consider a custodian that offers accounts holding precious metals. The custodian should also have access to depositories to store your investment. You should note that the IRS does not allow you to hold tangible IRA gold.

Step 3: Eligible funds rollover to gold IRA

Rolling your 401k plan into a gold IRA starts with opening an account with your custodian. You then fill out relevant forms to both your 401k plan administrator and your preferred gold IRA provider. Your funds are then transferred electronically or by check. When the funds are deposited into your gold IRA, you can invest in various forms of gold investments.

Step 4: Purchase precious metals

Once the IRA provider receives the rolled-over funds from 401k, you can use them to buy gold in various forms. The gold IRA allows you to add gold bullion, coins, and gold bars to your plan. However, when buying gold, you should check its quality to ensure it’s above 95%. With minted coins and other gold collectibles, you should consider IRS approval to avoid being conned.

Step 5: Shipment to the storage facility

Once you choose the purchase option, your dealer sends an invoice to your IRA custodian requesting payment. Shipping to a secure storage facility run by your IRA custodian follows soon after the payments have been made. With this step, it’s advisable to check whether the dealer has released your gold and if it was received by your custodian’s depository. Like any transaction, you should also ensure you are served with the necessary documents and receipts as proof of ownership.

**Simplify the process with our #1 recommended gold & silver IRA solution

What is a Gold IRA?

Gold investments come with various options. Some of the most popular options include; the gold IRA and the 401k investments. A gold IRA, by definition, is a self-directed retirement plan that involves investing in gold. This kind of investment involves committing your retirement savings into a gold IRA account directed towards generating profit.

With such an account, the value of your investment is accorded a chance to grow by taking advantage of the precious metal’s profitability. However, this may be considered an excellent investment decision; not all IRA plans offer a gold IRA. 

The gold IRA option is different from other gold investments in various aspects. The investment is usually long-term as it is directed to your financial capability during retirement. Another factor of this investment is that; a gold IRA comes with higher operational fees. This is compared to the traditional IRA and the Roth IRA, which involve investing only in stocks, mutual funds, and bonds. These plans do not offer investment in physical gold as opposed to the gold IRA. Another thing to note is that a gold IRA investment is focused on a single asset class.

What is a 401(k) Investment

The 401k plan takes its name from the US internal revenue code’s subsection 401(k). The 401k is an employer-sponsored pension saving account with defined – contributions involved. Contributions into a 401k plan are directly deducted from an employee’s paycheck. However, there are two classifications of 401k. These include; the traditional 40k and the Roth 401k plans. These two options vary on the associated tax benefits.

In a traditional 401k, contributions are made before income has been taxed. This means the employer sets aside the funds for investment into various options before deducting the income tax. The funds invested in an employee’s 401k plan benefit from growth on a tax-deferred basis. However, upon the employee’s retirement, they start receiving distributions at age 59.5 years. Unlike in the Roth 401k, the distributions in this plan are taxed according to the current income tax rate.

For a Roth account, contributions do not impact income tax. Contributions into a Roth IRA are made after the income tax has been deducted. This allows the beneficially to enjoy a tax-free growth of the investment. In this plan, the distribution is also tax-free. This means the benefits you receive during retirement will not be taxed on the condition that the contributions have been made for not less than five years and the beneficially has attained the age of 59.5 years. However, the contribution limits for the Roth 401k are significantly lower than the traditional 401k.

What is a 401k Rollover?

A gold IRA rollover involves the transfer of funds from a retirement account such as the 401k into a gold IRA account. Whether you are changing employers or preparing for retirement, a 401k rollover brings advantages and disadvantages. This requires you to know your options before making an investment decision that may affect the value of your investment.

Some of the factors involved include portability. This is relevant in scenarios where you change jobs; in this case, several options are available to you regarding your 401k plan. You can leave the money with your previous employer’s plan or roll over your new employer’s plan.

However, this article will cover the option to roll over your 401k plan into an IRA account. Rollovers are considered due to the costs incurred when you choose to cash in your 401k plan. For example, your employer may hold 20% of your account’s balance which is directed to prepaying the tax you owe.

Additionally, leaving your plan with the previous employer denies you the chance to continue with contributions. The disadvantages of not rolling over make the rollover option an excellent investment choice.

401(k) Rollover into a Gold IRA

First, you should note that you have the right to roll over your assets into an IRA plan when you retire or leave your job for any reason. However, the process involves various options based on the type of 401k plan you are rolling over and the type of IRA account you are rolling over to.

There are 401k plans that present an opportunity to invest in gold. However, should an employee feel the program doesn’t fit their development plans, the individual can choose to roll over into an IRA account. 

Rolling your 401k plan into a gold IRA starts with filling out relevant forms to both your 401k plan administrator and your preferred gold IRA provider. The funds are then transferred electronically or by check.

When the funds are deposited into your gold IRA, you can invest in various forms of gold investments. The gold IRA allows you to add gold bullion, coins, and gold bars to your plan.

When you decide to roll over your 401k plan, there are no tax penalties as long as you re-invest the funds in the gold IRA within 60 days. However, traditional IRAs do not allow investments in physical gold. With this option, the only choice is to invest your funds in gold stocks or funds.

The best option for holding physical gold is the self-directed IRA. This option allows investment in physical gold that you can both see and touch.

IRA Investment options:

An IRA account allows you to invest in various forms of gold investments. With an IRA account, you can also invest in stocks, ETFs, and mutual funds.

Self-Directed IRA Rollover

The best option for holding physical gold is the self-directed IRA. This option allows investment in physical gold that you store in your home. A Self-Directed IRA Rollover gives you the advantage of almost all types of gold investment options. These include; ETFs, stocks, mutual funds, options, and commodity futures, among other options.

ETFs:

The term ETF means; exchange-traded funds. These allow you as an investor to purchase large sets of gold stocks, corporate as well as government bonds in a single purchase. ETFs and mutual funds have a similarity. However, ETFs are monitored by algorithms tracking the entire performance of gold in the economy, while with mutual funds, you rely on the prowess of your fund manager. This brings about the difference in the management expense ratios (MERs).

Types of ETFs:

As an investor, various types of gold mutual funds are available for your purchase. These include; The stock market tracking ETFs, allowing you to own a fraction of the American gold economic sector. Sector Tracking ETFs option is best applicable to those investors who want to focus on the specific gold sector of the economy as opposed to the entire economy. International ETFs is an option for investors aiming to invest in international stocks that focus on developed or emerging markets. 

Gold Mutual Funds

With this option, you are allowed the opportunity to invest in gold directly as well as indirectly. You invest in mutual funds by purchasing stocks from gold producing, distributing, or mining companies. In short, you can invest in the asset without buying the physical gold. Gold mutual fund investments are usually open-ended and based on units provided by the gold ETF. The price of gold directly determines the value of your investment.

Advantages of a Rollover

Some of the advantages of rolling over your 401k plan into a gold IRA involve the tax benefits. This means that rolling over into a gold IRA does not expose you to any tax implications. With a rollover, you gain the opportunity to diversify your portfolio. 

You are also accorded an annual deductions advantage associated with a $5,500 gold IRA if you are under 50 years and $6,500 for individuals above 50 years. 

A gold IRA will enhance your retirement portfolio, making it more viable for profitability. The gold also enables you to ensure your investment is hedged against inflation in challenging economic times that may result in the loss of your investment’s value. 

Disadvantages of a Rollover

The most common disadvantage of an IRA rollover is the complex process involved. As much as it provides numerous opportunities for portfolio diversification, it is quite tasking. Though you are provided with access to physical gold, with the traditional IRA plan, you will have to acquire a custodian to store the gold for you. 

Only a self-directed IRA affords you the privilege of storing the gold in your home. The option is also demanding in case you are not conversant with the gold trade. Gold investments come with risks, making understanding the gold market’s basics crucial for every prospecting investor. This brings us to the most critical disadvantage, investing in gold comes with risks. If you do it right, rewards are (most likely) guaranteed; however, should you invest poorly or choose a company that is not well conformed to the mechanics of the gold trade, the decision can lead you to lose much of your hard-earned wealth.

Why Buy Gold with your rolled-over funds

Here are a few reasons why you should consider buying gold with your 401k rollover to IRA funds:

Ease of rollover

There are a few requirements for the rollover process. An investor can also use existing retirement assets to fund a gold IRA, like with the funds from a 401(k) to a gold rollover.

Transfer without penalties

A rollover from a 401k retirement plan to a gold IRA investment is non-taxable and doesn’t attract penalties. You also avoid covering any additional charges as your custodian handles the entire process.

Security

Gold’s economic relevance makes the precious metal an excellent means of hedging against tough economic times. Gold tends to rise in value during inflation, ensuring your investment’s value is not lost.

Gold has intrinsic value

Having intrinsic value relates to gold’s numerous economic applications; for example, electronic devices manufacturers need it to make components vital in the operation of these devices. The numerous applications give gold a huge economic and industrial relevance and intrinsic value.

In conclusion, 401(k) rollovers are an excellent investment option; however, it’s advised that you do thorough and conclusive research on the available options so as to make an informed investment decision.

==> See 3 top firms that can help you simply the gold rollover process

I hope you found this short guide on the 401(k) to gold IRA rollover process to be helpful and that you now have a better idea of what it is and what your next steps are. Please share your own experience in the comment section below as it can help others. Also, if you got any questions about this I would be more than happy to answer them below!

I wish you success!

Glanz, investor and team member at Gold Retired

Due to the Corona pandemic, shortages in the supply chain have remained a challenge to the economic sector. The pandemic has brought about an increase in demand for commodities due to the limited supply. These factors have led to global financial constraints, with most investors in various economic sectors experiencing the impact attributed to the decrease in value of their investment. 

However, economic challenges do not affect all sectors in the same way. Some sectors witness increased profitability during these periods depending on their role in economic value determination. An excellent example of such an investment is precious metals like gold. Historically, gold has been used as the most preferred economic value determinant. This has enhanced its economic relevance and ability to shield investors from adverse economic effects like inflation brought about by pandemics, and political instability, among other factors. Due to this reason, the price of gold tends to increase during economically challenging times. In turn, the value of related investment rises too. Thi trend attributes to the increased demand for precious metals from investors who want to hedge against the harmful effects. The trading sector occurrences can illustrate the concept.  

In this article, we will cover one of the popular gold investments involving investing in gold stocks. This brings us to the question; which is the best gold stock to buy now?  

According to the President and Editor of the Ord Oracle, Timothy Ord, the price of gold stocks could see 10X gains in the next three years. Wall Street estimates for the near future show a continued increase in price. Goldman and Citibank expect gold to rise to around $2,300 per ounce. These predictions make gold investments one of the preferable investments currently. 

Things to know before investing in gold stocks

As an investor diversifying your portfolio gives you enhanced chances for profitability. With gold as one of your investment options, diversification is guaranteed. The diversification is attributed to the multiple options available for you as well as the economic role of this precious metal. However, there are various things you need to understand about a gold stock investment.

First, an investment in gold stocks is not the same as investing in physical gold. As much as investing in gold stocks gives you exposure to gold, you will not be investing in physical gold. In other words, this option lets you invest in gold by investing in companies that produce, distribute or mine the precious metal. You should note that gold stocks are prone to a fall in value depending on the situation. This means, like any other investment, there is always a risk to the value of your investment.

Another factor to consider involves the precious metal’s inverse relationship to the dollar. This means their prices tend to move in a different direction. In simple terms, gold prices rise when the dollar falls and vice versa. As the dollar is one of the most important currencies in the global economy, gold investment can serve as a hedge against inflation related to the currency. However, there are scenarios where the prices of both gold and the dollar move in the same direction. In periods of systemic risks, people tend to use gold and the dollar as safe-havens, which can result in such an effect. This means portfolios may not act according to your expectations. 

Taxation is another fact of a gold stocks investment. However, there are advantages associated with a gold investment. Long-term capital gains are usually taxed lower than your marginal rate. This means your marginal tax rate is the tax on short-term assets; your marginal rate is capped at 28% for long-term investments. In simple terms, you must know the tax rating to make a more informed decision when buying or selling gold stocks.

The final and most important fact to understand is gold, like any other investment, does not provide consistent returns. Publicly trading companies gain value out of the value of goods they produce. However, gold does not have an output. Michael Reynolds, the vice president of investment strategy at Glenmede refers to this as a structural disadvantage of gold concerning other asset classes. To simplify, this means even when stocks pay dividends and bonds pay interests, gold does not produce more gold. This means your investment’s profitability is based on price fluctuations. These are not guaranteed and can have long stretches of underperformance.

Gold investment may also require you to pay a premium that does not involve the marked price. These extra costs are attributed to manufacturing, and related distribution, among other factors. This means that you will have to account for the charges to determine your profitability, which minimizes your profits.

Gold Stocks Options

Gold stocks involve publicly traded gold investments. In simple terms, you purchase shares in publicly dealing gold. This allows you to gain profit from the trades made on gold. In other words, you get paid in the form of a dividend. The shares are of companies dealing with gold which can be; gold Mutual Funds, mining corporations, or Exchange Traded Funds. This means that when you buy shares, you own a percentage of the company, which entitles you to profits made by your investment in the gold stocks.

Stocks in Gold Mining Companies:  this option involves purchasing stocks in a gold mining company. Gold is a hard mineral to find, for that matter. However, a company’s prowess to find and mine it determines its profitability, as well as the profitability of its stock. Investing in this option depends on your preferred company’s ability to mine gold. You should review the company’s track record to make a more informed decision. As gold is rare, the investment provides a high risk and reward.

Exchange-Traded Funds (ETFs):  ETFs are a type of investment that involves securities that you can buy or sell through a brokerage firm during market hours on a stock exchange. ETFs involve a collection of stocks or bonds in a single fund that is bought and sold like a common stock on the stock exchange. Investing in ETFs offers you a chance to diversify your investment through a mix of assets. With this option, you benefit from lower operating expenses, trading flexibility, and tax efficiency. 

Gold Mutual Funds: This option allows you to invest in gold directly and indirectly. You invest in mutual funds by purchasing stocks from gold producing, distributing, or mining companies. In short, you can invest in the asset without buying the physical gold. Gold mutual fund investments are usually open-ended and based on units provided by the gold ETF. The price of gold directly determines the value of your investment.

Best Gold Stocks in the Market

Barrick Gold Corp (NYSE GOLD): This Canadian company is ranked among the most valuable. The company has a market capitalization of more than $35 billion. Barrick gold corp owns 14 mines, six of which are tier one gold assets. This means they have a life expectancy of more than ten years on 500 thousand ounces of gold production. This fact ensures one of the most profitable return expectations in the market. 

The fact that the company continuously explores and acquires new land for gold mining provides an enhanced chance of continued profitability of stocks purchased under the company. In 2020, the company generated $12.515 billion in revenues, with the annual production being 4.8 billion ounces. The company’s yield on the stock has averaged 1.04% in the last five years. The company’s performance also enhances liquidity as more than 14.5 million are traded on an average trading session.

Newmont (NYSE:NEM): This company is ranked among the largest gold mining companies in the world. The company owns 22 mines. Ten are dedicated to underground mining, while the other 12 are for surface mining. The company prides a market cap of more than $47 billion. 

The company also actively searched for new sites for mining development, ensuring continued profitability. In 2020 the company generated revenues worth $11.479 billion with a production of 5.9 million ounces. The company stocks yielded dividends averaging 1.21% in the last five years, with highs of 3,11% to a low of 0.24%.

Kirkland Lake GOLD (NYSE:KL): This is also a mining company that operates internationally with gold mines in Canada and Australia. The company owns three high-quality mines that have contributed to its ability to pull more than one million ounces from the ground. These company’s stocks are attractive to income investors as they have managed to pay quarterly dividends without fail since 2007. 

In 2020 the company generated revenues amounting to $2.46 billion. In the same year, the company produced 640,467 ounces of gold. The company claims to trade 1.5 million shares on an average trading session. In the last five years, the stock yields ranged from 0.24% to 1.96%.

Conclusion

Looking at the examples of the most profitable stocks, it’s easy to note that most of the best-performing stocks relate to gold mining companies. These companies take the bulk of the top ten rankings with a high possibility of returns on your investment. To answer the question, which gold stocks to buy now?. 

I would recommend you consider stocks related to mining companies. However, the profitability of these stocks is based on various factors, including; the specific company’s operation, among other factors. As much as these stocks promise value addition, it’s also wise to do further research on the company stocks you wish to invest in to make a more informed decision. 

Recommended resource

One resource I always recommend for gold stocks, mining, and investment in general is the Capitalist Exploits main service, however, they also got a free newsletter that might be very valuable as well. I would recommend that you check those guys out and sign up to their newsletter, and if you are serious about things, then their paid service is a must, the price for it is very undervalued I would say… especially when you look at the value it brings.

I hope you found this short article on the best gold stocks to be helpful and that you now have a better overall view on your purchasing alterniatives. Please feel free to share this article with anyone you think might find value from it!

Thank you for reading!

Glanz, investor and team member at Gold Retired.