Jim’s advice is that in order to have maximum protection for your assets you must eliminate all third parties between you and your investments. The Federal Appeal Courts decision in the Sentinel case does not augur well for any client should their brokerage become bankrupt. You should read the judgment in the Sentinel case in the light of your current circumstances.
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Jim’s Mailbox
Posted June 27th, 2013 at 10:38 AM (CST) by Jim Sinclair & filed under Jim's Mailbox.
http://www.jsmineset.com/2013/06/27/jims-mailbox-1295/
Hi Jim,
Hope all is well with you. I am looking forward to seeing you in Florida.
I have been working with my stock broker (Charles Schwab) in an effort to GOTS with my IRA account. According to Schwab at the present time my IRA stocks are held in the name of Charles Schwab for the benefit of My Name. This would seem to me to offer me more protection than if they were held in street name but certainly not as much protection as if they are in my name alone. Based on my discussions so far with Schwab it would appear that in order to have them put solely in my name (DRS) I would have to withdraw them from my IRA, pay taxes as required, then put into my name in DRS.
I’d appreciate your comments regarding how they are presently being held, ie. Charles Schwab for the benefit of my name.
Thanks so very much for all you do,
CIGA Larry from Orlando
Hi Larry,
Jim’s advice is that in order to have maximum protection for your assets you must eliminate all third parties between you and your investments. The Federal Appeal Courts decision in the Sentinel case does not augur well for any client should their brokerage become bankrupt. You should read the judgment in the Sentinel case in the light of your current circumstances.
The financial pain involved in paying the taxes to enable you to exit the IRA will not compare to what you might face in the event of a brokerage failure. Peace of mind is an important thing to have, particularly in this new world of finance dominated by thieves.
Regards,
Peter Mickelberg
Communications Consultant
www.jsmineset.com
Hi Alex,
Jim’s advice is that If your broker is telling you there is no way you can DRS your shares then you must find another broker that can deliver the service. You could contact Mishka Vom Dorp at Sprott Global Resource Investments Ltd. He will be happy to asset you regarding DRS. The contact details are:
http://sprottglobal.com/contact-us/
Mishka vom Dorp
Sprott Global Resource Investments, Ltd.
1910 Palomar Point Way Suite 200
Carlsbad, CA 92008
Regards,
Peter Mickelberg
Communications Consultant
www.jsmineset.com
I’d rather be invested in the gold sector now and suffer through the potential for slightly more downside than miss a possible upside explosion.
–CIGA HV
Hi Peter,
Thanks for your reply. I found out that if I get the shares in my self directed RSP registered, then that is effectively withdrawing them from my SDRSP and I would take the tax hit. Kind of damned if you do, damned if you don’t. Not sure what I’ll do with those, but I’ll direct register the shares in my TFSA.
I have two small pensions from companies I no longer work for. They’re both with insurance companies, Sun Life and Co-operators. Should I be concerned about them? Obviously, if I were to get them transferred to my SDRSP, I still can’t direct register any shares I may purchase due to the reason above. Puts a guy in a tough spot.
CIGA Grant
Hi Grant,
Jim’s advice is that in this climate we must exercise caution concerning all of our investments and retirement accounts. They are all potentially at risk.
The question of taking a penalty for an early exit is a vexing one but it must be made in the light of the very real prospect that nationalization of retirement accounts could be a reality. The IMF has openly canvassed the idea in relation to Cyprus which may have been a dress rehearsal for further bail ins.
Regards,
Peter Mickelberg
Communications Consultant
www.jsmineset.com
Hi David,
The US Fed has, via it’s printing press, disbursed $2.284 trillion in new money since August 2008.
Currently 81.5% of that money sits idle in excess reserves of private banks which are deposited at the Fed. Those reserves increased from $831 billion in August 2008, just prior to the collapse of Lehman, to $1.863 trillion as of June 2013.
Previously the excess reserves of the private banks had stayed near zero since 1959. The reason it was so low up until August 2008 was because the banks were investing in income earning assets which included loans to consumers and businesses otherwise the money sat idle earning zero interest.
The reason the private banks are presently not seeking a return is because Bernanke made them an offer they couldn’t refuse. The Fed pays these banks a high enough interest rate to not make loans because the Fed thinks that is the best way to prevent inflation.
That is why despite all that money printing by the Fed the velocity of money is so low.
Regards,
Peter Mickelberg
Communications Consultant
www.jsmineset.com
Posted June 27th, 2013 at 10:38 AM (CST) by Jim Sinclair & filed under Jim's Mailbox.
http://www.jsmineset.com/2013/06/27/jims-mailbox-1295/
Hi Jim,
Hope all is well with you. I am looking forward to seeing you in Florida.
I have been working with my stock broker (Charles Schwab) in an effort to GOTS with my IRA account. According to Schwab at the present time my IRA stocks are held in the name of Charles Schwab for the benefit of My Name. This would seem to me to offer me more protection than if they were held in street name but certainly not as much protection as if they are in my name alone. Based on my discussions so far with Schwab it would appear that in order to have them put solely in my name (DRS) I would have to withdraw them from my IRA, pay taxes as required, then put into my name in DRS.
I’d appreciate your comments regarding how they are presently being held, ie. Charles Schwab for the benefit of my name.
Thanks so very much for all you do,
CIGA Larry from Orlando
Hi Larry,
Jim’s advice is that in order to have maximum protection for your assets you must eliminate all third parties between you and your investments. The Federal Appeal Courts decision in the Sentinel case does not augur well for any client should their brokerage become bankrupt. You should read the judgment in the Sentinel case in the light of your current circumstances.
The financial pain involved in paying the taxes to enable you to exit the IRA will not compare to what you might face in the event of a brokerage failure. Peace of mind is an important thing to have, particularly in this new world of finance dominated by thieves.
Regards,
Peter Mickelberg
Communications Consultant
www.jsmineset.com
Hi Alex,
Jim’s advice is that If your broker is telling you there is no way you can DRS your shares then you must find another broker that can deliver the service. You could contact Mishka Vom Dorp at Sprott Global Resource Investments Ltd. He will be happy to asset you regarding DRS. The contact details are:
http://sprottglobal.com/contact-us/
Mishka vom Dorp
Sprott Global Resource Investments, Ltd.
1910 Palomar Point Way Suite 200
Carlsbad, CA 92008
Regards,
Peter Mickelberg
Communications Consultant
www.jsmineset.com
I’d rather be invested in the gold sector now and suffer through the potential for slightly more downside than miss a possible upside explosion.
–CIGA HV
Hi Peter,
Thanks for your reply. I found out that if I get the shares in my self directed RSP registered, then that is effectively withdrawing them from my SDRSP and I would take the tax hit. Kind of damned if you do, damned if you don’t. Not sure what I’ll do with those, but I’ll direct register the shares in my TFSA.
I have two small pensions from companies I no longer work for. They’re both with insurance companies, Sun Life and Co-operators. Should I be concerned about them? Obviously, if I were to get them transferred to my SDRSP, I still can’t direct register any shares I may purchase due to the reason above. Puts a guy in a tough spot.
CIGA Grant
Hi Grant,
Jim’s advice is that in this climate we must exercise caution concerning all of our investments and retirement accounts. They are all potentially at risk.
The question of taking a penalty for an early exit is a vexing one but it must be made in the light of the very real prospect that nationalization of retirement accounts could be a reality. The IMF has openly canvassed the idea in relation to Cyprus which may have been a dress rehearsal for further bail ins.
Regards,
Peter Mickelberg
Communications Consultant
www.jsmineset.com
Hi David,
The US Fed has, via it’s printing press, disbursed $2.284 trillion in new money since August 2008.
Currently 81.5% of that money sits idle in excess reserves of private banks which are deposited at the Fed. Those reserves increased from $831 billion in August 2008, just prior to the collapse of Lehman, to $1.863 trillion as of June 2013.
Previously the excess reserves of the private banks had stayed near zero since 1959. The reason it was so low up until August 2008 was because the banks were investing in income earning assets which included loans to consumers and businesses otherwise the money sat idle earning zero interest.
The reason the private banks are presently not seeking a return is because Bernanke made them an offer they couldn’t refuse. The Fed pays these banks a high enough interest rate to not make loans because the Fed thinks that is the best way to prevent inflation.
That is why despite all that money printing by the Fed the velocity of money is so low.
Regards,
Peter Mickelberg
Communications Consultant
www.jsmineset.com