This “investment opportunity” is about as risky as they come. It involves shady gold companies convincing you to open up an LLC company in your own home, which will then supposedly allow you to hold your retirement funds (or gold) in your own home!
This is an attempt to avoid the IRS requirement of retirement accounts, including precious metals IRA’s, to be setup by an established custodian or financial institution that is subject to state or federal regulation.
No Banks and No Fees?
With the home storage scam, gold dealers will tell you that there will be no banks, no fees, and immediate access to your precious metals right in the comfort of your own home.
While they will make it sound simple and legal… BEWARE.
It is EXTREMELY RARE for anyone to actually meet the lengthy IRS requirements for a home storage IRA, and setting up a simple LLC in your house won’t cut it.
Anyone wishing to even attempt this, must complete a written application with the IRS, demonstrating that you satisfy a long list of requirements that meet the applicable regulations.
IRS Complicated Long List of Requirements
This includes complicated requirements relating to fiduciary ability, experience, capacity, fitness to handle retirement assets, bonding, audits and net worth.
Additionally, the applicant cannot act as a trustee or take possession of the metals until the IRS provides notice that their application has been approved.
The time and effort it would take to compile these materials and even stand a chance for approval is ridiculous.
Don’t Be Prey For The “Simple 3 Step Process”
This reality is in stark contrast to the simple 3 step process promoted by many “home storage” gold dealers.
But the gold companies don’t care because once they have your money, they will ship the gold to your LLC company (at your house) while you wait for IRS approval (or the more likely rejection).
Even worse, if you look carefully on their website, there will be a tiny disclosure stating that you release them of any legal liability if the process turns out to be illegal!
And, What Happens to You?
So you are left holding the bag.
And guess what happens if you take possession of that gold before you are IRS-approved, or if the IRS rejects your application?
You could be required to pay immediate taxes on your entire retirement account, as well as a 10% penalty – effectively costing you 35% of your retirement or more!
The scammers are not only trying to trick YOU, but they are also trying to get you to trick the IRS, by pretending that your IRA isn’t really under your control – and that it is instead “controlled” by a shell company in your house.
Do You Think You Can Really Fool the IRS?
But let’s be realistic here.
We are talking about the IRS.
Do you really think they will believe you do not “control” your IRA if the funds are sitting in a safe in your own bedroom?
And which is more likely — the IRS accepting your application with this cockamamey structure, or rejecting it?
The answer is obvious.
So do yourself a favor and hang up the phone if any company mentions a “home storage” option for your precious metals IRA.
The sales people work on commission, so take what they say with a grain of salt.
Speaking of safe storage, if you are worried about a government collapse, and total anarchy…
There is one ideal place to store your gold, safely, with maximum security, zero taxes, and peace of mind.
It is OUTSIDE of the USA and 100% legal and IRS-approved.
100% insured and backed by Brinks Security.
The location is Singapore, and it is emerging as one of the preeminent precious metals trading hubs in the world.
If you think it’s a good idea to get your gold outside of massively indebted and near insolvent Western banks and jurisdictions…
Singapore is a viable option.
Tomorrow I’ll be sending you my last message. About Scam #5.