I downloaded a sample from iBooks over the weekend and have found it to be provocative reading, to say the least…that is if you don’t mind wading through the wonky stuff.

Already the naysayers and market pundits have decreed that Stockman is just some “cranky old man” who has an ax to grind.

But, it’s important to point out that Stockman was a Congressman from Michigan, worked in the Reagan White House and spent more than a little time on Wall Street himself. I think he knows a thing or two about how things work.

Hopefully, the main stream media won’t excoriate him before enough people have had the time to read what Stockman has to say about the liars, thieves and downright bad guys who have totally corrupted our financial and political systems.

Stockman portrays the future as “bleak”. He believes when the next bubble pops, there will be nothing to stop the collapse.

He characterizes the United States as being broke – fiscally, morally, intellectually — and he places the blame squarely on the unholy alliance of politicians and greedy Wall Street investment bankers aided and abetted by the Federal Reserve.

According to Stockman, the way out of this mess would be so radical that it simply can’t happen. And, after reading what the required medicine would be, I completely agree.

Recall the movie “Oh Brother Where Art Thou”. Remember the scene where the guys are standing on the top floor of a burning barn and are looking out at the sheriff and his deputies with shotguns and rifles. One of them looks at the others and says “boys – we’re in a heap of trouble”.

I’ve been writing about the Wall Street casino and mobsters who call themselves politicians and lobbyists almost since the 2008 collapse. I’ve described Wall Street as legalized gambling and the smoke & mirrors created by the Fed as something akin to the “Matrix”.

Hopefully, you’re not still speculating in the stock market. If you are, you might want to heed Stockman’s parting words: “If this sounds like advice to get out of the markets and hide out in cash, it is”.

I’ll take it a step further: get out of markets and invest into “real” assets that won’t disappear just because the Dow drops out of sight. More specifically, invest into income-producing real estate assets.

If you don’t already have a Self Directed IRA or 401(k), consider setting up one right now. Then, invest into assets that will produce income.

Contact us to learn how.

Safeguard IRA & 401(k) Advisors
877-229-9763
www.IRA123.com

Answer: Everything. Both have been created by BAD government policy, easy money and greedy Wall Street players.

Yesterday, CNBC’s stock market expert, Jim Cramer, stated: “we all know it’s going to end badly, but in the meantime we can make some money” – Translation: “just make sure to sell (stocks) ahead of everyone else.”

This morning (3/6/13), USAToday’s Editorial board released a statement confirming their belief that a bubble is building in the stock market (just like the housing/mortgage market from 2002 to 2007)…and they’re not alone with their warning.

Here’s the most important quote from the Editorial entitled “Dow Jones High On Fed Steroids”:

“The Federal Reserve’s purchases have driven interest rates to near zero. This has stimulated the economy but not without cost. Savers, particularly older ones trying to live on income from their investments, are starved for safe options.

Investors have been forced into stocks, (by the Fed’s stimulus spending) which is one reason the market has been acting as if it’s on steroids. Further, with borrowing costs low, Congress and the White House have less incentive to rein in the national debt. Rock-bottom interest rates have also distorted markets.

The best indication that the Fed’s bond-buying purchases are pushing stocks up artificially is that investors run for cover whenever there is a hint that the Fed might change course, as happened recently.

On Monday, billionaire super-investor Berkshire Hathaway CEO Warren Buffett told CNBC that markets are on a “hair trigger” waiting for signs of change from the Fed. The market is “hooked on the drug” of easy money, Dallas Fed President Richard Fisher told Reuters.”

Read the entire Editorial here: USAToday Editorial. Read the Jim Cramer article here: Zero Hedge

Jim Cramer stated the obvious by pointing out “we all know it’s going to end badly”. (What he’s referring to is a BIG drop in the stock market. The only thing we don’t know is “when and how much”).

In 2007, the housing mortgage bubble burst. BAD government policy and easy money, coupled with Wall Street’s mortgage backed securities scam proved a toxic mixture and the walls came tumbling down. Millions of investors lost a huge portion of their retirement investment.

Thirty years ago, the band “The Eagles” wrote and recorded a hit song called “Take It Easy”. Part of the lyrics are very appropriate right now: “Lighten up while you still can, don’t even try to understand. Just find a place to take your stand, and take it easy.

Unless you have a crystal ball or you have incredible market timing, we believe a wise thing to do right now is to liquidate most, if not all, of your funds invested into securities, and move them into a cash position…money market, etc.

Then, allocate a part of your portfolio to income-producing real estate or notes & trust deeds backed by the security of real estate. Regardless of what happens, these investments will produce income…unlike the outcome with a falling stock market.

Over the past 5 years, millions of people have become renters because of the distressed housing market. And, rent rates have gone up 16-20%.

Our clients have successfully capitalized on investments into income-producing real estate with their Self Directed IRA or 401(k). We encourage you to do the same.

Safeguard IRA & 401(k) Advisors
877-229-9763
www.IRA123.com

Fed Chairman Ben Bernanke is pumping $40 billion of stimulus spending per month into the economy arguing that stimulus spending (quantitative easing, printing money) is the only thing that will “save” America from economic collapse.

Bernanke was quoted as saying that stimulus spending helps the stock market to rise… thus creating a wealth effect. “If people feel that their financial situation is better because their 401(k) looks better, or for whatever reason, their house is worth more, they are more willing to go out and spend.”

In other words, what you see and what you hear about the economy, job creation, stock market rising, it’s NOT REAL…it’s all an elaborate ruse. It’s smoke and mirrors, an illusion, a magic trick, a fantasy.

Yesterday, January 25, 2013, The New York Times published an article entitled “As Worries Ebb, Small Investors Propel Markets”. (Please read the entire article).

The essence of the article is this: Feeling better about the economy, and being driven by rising indexes and the fear of being left out of a big run up in the stock market, individual investors are plowing money back into stocks and mutual funds.

But, this is what you should focus on in the article:

“In good times and bad, many individual investors tend to buy and sell at precisely the wrong moments. They dump stocks after the market falls and buy stocks after the market rises, the opposite of what investors aim to do.”

“People who got out as stocks plummeted in 2008 and early 2009 have already missed a remarkable rally.”

“Now, the investing public seems more afraid of missing out than of misreading Wall Street again.”

About 6 months ago, we posted a blog entitled “Dow Jones 13,000…Real or Fake”, in which we quoted another New York Times article published on July 24, 2012 that stated:

“Quantitative Easing is an effective manner to manipulate the stock market higher, often on anemic volume, creating the illusion of wealth and an improving economy. And since people vote with their portfolio pocketbooks, such investors are more likely to buy stocks in such a stealth bull market environment, creating a further illusion of wealth.”

If the economy were a patient with a brain tumor, the central banks are injecting the patient with morphine to make the patient feel better, but meanwhile, the tumor continues to grow. The price to pay for providing temporary feel good solutions without dealing with the tumor is catastrophic. And, the end result may be disastrous stock market results which is indicative of a disastrous economy.”

Remember, this is the same New York Times newspaper that in July 2012 is laying out the truth about what stimulus spending does…it creates an illusion of wealth. Then in the January 25, 2012, the same newspaper reports…the Fed’s stimulus spending, cheered on by Wall Street and mainstream media, is doing it’s job.

Collectively, the Federal Reserve, Wall Street, the U.S. Government, and the mainstream media, have once again succeeded in convincing individual investors that it’s safe to put their money back into the stock market…a total “illusion”.

DON’T FALL FOR IT… You have far better options than the stock market. You can invest a Self Directed IRA or 401(k) into income-producing real estate assets…rental properties and trust deed notes, that not only outperform the stock market, they’re much, much safer investments.

For more information and to explore options, contact us now:

Safeguard Advisors
Self Directed IRA & 401(k) Plans
877-229-9763
www.IRA123.com

• Even after 5 million foreclosures, there is still an excess supply of single family homes, relative to demand.
• Home prices will rise in 2013, but only modestly… about 3% on average.
• Shadow inventory (seriously delinquent mortgages + homes in foreclosure) is in the 4 million range and will continue to supply the market for the next several years.
• Rental vacancy rates are heading down and rents are rising as weak income gains, favorable demographics, and the foreclosure crisis continues to turn homeowners into renters and keep renters from becoming homeowners.
• Slow income growth has accompanied the tentative economic expansion of the past couple of years. Consequently, many households, particularly new households, lack the financial wherewithal to purchase a home.
• More than 5 million homeowners have lost their homes to foreclosure over the past several years. This makes it difficult for them to return to homeownership because lenders typically will not approve a mortgage if a borrower has been foreclosed upon within the last seven years.
• Acceleration in apartment construction exceeds that of single-family construction, but in the context of longer-term trends apartment construction is not keeping up with households.
• Supply conditions on the single-family rental side are tightening, as very few new construction single-family units are being built and vacancy rates are dropping.

Summary

In 2013, the drivers of rental demand will remain solid and demographics will stay favorable for renting, while a stream of foreclosures will continue to feed the pool of renters.

Tightening in the apartment market combined with a declining single-family vacancy rate insures that investors will continue to profit from converting distressed homes into rentals…many with the intent of selling these homes once price appreciation returns.

We can help you set up a Self Directed IRA or Solo 401(k) in order to invest retirement funds into a real estate deal of your choosing or you can take advantage of our Managed Real Estate Investment Program.

Call us today to explore your options.

Safeguard Advisors
Self Directed IRA & 401(k) Plans

Safeguard Properties
Managed Real Estate Investments

877-229-9763
www.IRA123.com

Sources for this blog: Moody’s Analytics & Case-Shiller

And, despite rising prices and shrinking foreclosure inventories, most active real estate investors plan to buy as many or more residential properties in the next 12 months as they did in the past year”.

(Access the entire survey and report here: Real Estate Investment Survey)

The survey also points out something that we have known as a reality for the last year: There are lots of individual investors (foreign and domestic) out in the marketplace, and our friends on Wall Street have not only taken notice…they’ve become participants.

Hedge funds and venture capitalists have identified the single family rental market as a class of investment that they could exploit with their superior “fire power”. And, they have attacked it with abandon.

(For an in-depth understanding of how the Wizards of Wall Street are impacting single family home investing, please read our previous blog on this subject: Rental Homes: New Asset Class…for Wall Street.)

Between 2008 and 2012, there were about 5 million foreclosures that hit the market, supplying a huge amount of investment properties that were available at rock bottom prices.

As with many investments, the best time to get in was when most others were sitting on the sidelines. Savvy investors (many of them our Self Directed plan investors) recognized what was going on, and they scooped up bargains that popped up across the street, or in another state.

But, what about today. Is there still time to take advantage of this once-in-a-lifetime investment opportunity?

As with other investment opportunity cycles, the easy days of walking around and picking up gold nuggets off the ground are over, but if you know where to look, there are still lots of bargains out there.

So, if you’re still undecided, wondering if real estate investing is the right thing to do, we have good news: you can still invest into income-producing real estate and expect really good returns…just like thousands of our clients nationwide.

Contact us today for help with setting up a Self Directed IRA or 401(k) plan that is designed to invest into real estate, precious metals, private company stock and a myriad of other options.

And, we can help you invest through our Managed Real Estate Investment Program that allows you to either own a property that we manage for you or you can be a lender and hold a private mortgage with real estate as security.

Safeguard Advisors
Self Directed IRA & 401(k) Plans

Safeguard Properties
Managed Real Estate Investments

877-229-9763
www.IRA123.com

We are all aware that these are dark and perilous economic times, even though there are glimmers of light shining through here and there.

Unfortunately, many retirement investors are just plain “fearful”…afraid to make a decision about what to do about their future. Most have a list (if not written down, then mental) of economic conditions and issues that could have very negative effects, both real and imagined, on their lives.

They don’t know what results the negative impact could have. So, coupled with their lists, they add “fear of the unknown”. A double whammy! Frozen in place!

However, for those of us who understand that not taking action is worse than the alternative…fear is not an option.

Overcoming fear doesn’t happen instantly or automatically…it’s the result of deliberate and intentional actions. The result? Those positive actions invariably lead to a sense of well being and happiness rather than misery.

Nothing valuable was ever gained by playing it safe. The Founding Fathers, in signing the Declaration of Independence, weren’t just risking their economic futures, they were risking their very lives because what they were doing was an act of Treason.

Fear of risk, especially in the realm of money, typically causes people to make very bad decisions and their worst fears often come true. It’s not because risk was involved, but because all options weren’t considered and evaluated properly.

Is it possible that the world economy will collapse tomorrow? Yes it is. What would that mean? It would mean there would be some very unpleasant times. Money would have no value and stocks would be worthless. Chaos would rule the day.

But, should this scenario, which will probably never happen, prevent you from making investment decisions today that will be beneficial to your retirement future tomorrow? No. Absolutely not.

As a retirement investor, you must take risks. But, don’t just blindly jump into something…educate yourself. Ask good questions. Consider all the possibilities, then unhesitatingly make your move confident in the outcome.

We are fully prepared to advise you because we’re dealing with the same investment decisions that you’re dealing with. How much should I have invested in the stock market, or in real estate, or precious metals? How much should I leave in cash?

We can help you set up a Self Directed IRA or Solo 401(k) in order to invest retirement funds into a real estate deal of your choosing or you can take advantage of our Managed Real Estate Investment Program.

Call us today to explore your options.

Safeguard Advisors
Self Directed IRA & 401(k) Plans

Safeguard Properties
Managed Real Estate Investments

877-229-9763
www.IRA123.com

As the report points out, a number of Self Directed IRA account holders have been the victim of fraud by criminals intent on separating account holders from their money. The report lists 6 examples totaling at least $40 million in IRA funds that were lost through illegal and fraudulent schemes.

Most of these schemes mimic the same type of fraud that has become well known to us through people like Bernie Madoff and many other fraud promoters (criminals) who can be viewed weekly on television shows like “American Greed”.

Of the more than $4.7 trillion invested in IRAs and other pension and retirement plans, about 2 percent, or $94 billion dollars, is held in Self Directed IRAs.

And, while the $40 million in this report represents only .5%, of the total funds invested in Self Directed IRAs, there is no question that you should be aware of the risks of getting involved with unscrupulous individuals.

Now…having meticulously read through this friendly alert from the SEC, and having duly published a link to this report so that you can read it for yourself, I must make the following comment:

“Investing in individual rental properties and trust deeds is probably the safest way to prevent the kind of fraud and deception referred to in the SEC report. And, when compared straight up with the performance of stocks, bonds, mutual funds and CDs, there is no comparison at…in terms of ROI.” (See our blog: A Dose of Reality: Stocks vs Rental Property)

So, be aware that there are people out there who are looking for an opportunity to separate you from your hard earned IRA and 401(k) funds without giving any thought to actually giving your money back, much less a gain on the so-called investment.

Go out on Main Street and make all the money you can make. There are wonderful opportunities all around you. Just make sure you do your homework and be diligent.

We can help you set up a Self Directed IRA or Solo 401(k) in order to invest retirement funds into a real estate deal of your choosing or you can take advantage of our Managed Real Estate Investment Program.

Call us today to explore your options.

Safeguard Advisors
Self Directed IRA & 401(k) Plans

Safeguard Properties
Managed Real Estate Investments

877-229-9763
www.IRA123.com

Unless you live in a cave, or under a rock, you know that the world, and the U.S., is in a very perilous state of affairs. And, people are acting like “deer in the headlights”…frozen in place.

This Presidential election cycle (more than any since 1980) has created emotional cripples of most consumers and investors with ramped up rhetoric that, at the very least, causes people to just “do nothing” when it comes to making important decisions.

On top of that, gas prices are skyrocketing and this issue tends to have a psychological impact that goes way beyond filling up the gas tank…even if you can afford the increases.

The day after the election, the airwaves will go silent (at least the campaign ads will go away) and people can return to the “fantasy” of living out the American dream. All will be well in paradise…even though it’s really not.

Frankly, if you think it through, what difference will it make to your investment decisions whether a Democrat or Republican is elected?

Yes, each political party has a different “view of the world” and strategy for attacking our economic problems, but right now you still need to do whatever is necessary to maximize returns on your retirement investments.

So, turn off the TV and stop exposing yourself to the endless diatribe of attack ads, rhetoric and downright despicable oratory coming from every possible source.

Tune into developing a strategy to maximize the wealth that you can create for retirement by setting up a Self Directed IRA or 401(k) and then investing into real estate, precious metals, private company stock or other opportunities that may come your way.

If you don’t know what to do, check out our Managed Real Estate Investment Program that offers between 9-15% annual return on investment.

Give us a call at 877-229-9763 to discuss your options.

Is it a coincidence that global central banks have pumped nearly $7 trillion into the world’s stock markets?

In most recessions or economic downturns, central banks strengthen the economy by lowering interest rates. But when times are so bad that banks won’t lend or borrowers won’t borrow, interest rate lowering simply does not work.

Quoting the New York Times on July 24, 2012:

“in those circumstances, central banks turn to what economists call “quantitative easing’’ — unorthodox methods of pumping money into an economy and working to lower the long-term interest rates that central bankers do not usually control.

 The most usual approach is large-scale purchases of debt. The effect is the same as printing money in vast quantities, but without ever turning on the printing presses. The Fed buys government or other bonds and writes down that it has done so — what is called “expanding the balance sheet.”

The bank then makes that money available for banks to borrow, thereby expanding the amount of money sloshing around the economy thereby, it hopes, reducing long-term interest rates.”

So, how does the relate to the Dow Jones average? According to Dr. Chris Kacher and Gil Morales (co-Managing Directors of MoKa Investors, LLC and Virtue of Selfish Investing, LLC):

“QE is an effective manner to manipulate the stock market higher, often on anemic volume, creating the illusion of wealth and an improving economy. And since people vote with their portfolio pocketbooks, such investors are more likely to buy stocks in such a stealth bull market environment, creating a further illusion of wealth.”

If the economy were a patient with a brain tumor, the central banks are injecting the patient with morphine to make the patient feel better, but meanwhile, the tumor continues to grow. The price to pay for providing temporary feel good solutions without dealing with the tumor is catastrophic. And, the end result may be disastrous stock market results which is indicative of a disastrous economy.”

We wholeheartedly agree with this assessment. When the house of cards comes falling down, your portfolio will go with it just like it did in 2008.

Learn how you can invest into alternative assets such as income-producing real estate and avoid the catastrophic stock market collapse that is sure to come in the not too distant future. Go to www.IRA123.com and investigate your options.

The main focus of the company is the professional set up, maintenance and investment of Self Directed IRA and 401(k) plans for clients who want complete control and investment flexibility within all asset classes, but primarily Real Estate.

Founded in 2005, Safeguard IRA Advisors serves more than 2000 real estate investor clients in all 50 states, and ex-patriot investors in more than a dozen countries.

Contact Safeguard at 877-229-9763 or go to the website at www.IRA123.com.

Certain venture capital companies are promoting a “new” asset class to be sold as securities…single family home rentals!

Remember the last time Wall Street created a new asset class? That’s right, they packaged up single family home mortgages that were sold as securities. And, we all know what happens when bad government policy and Wall Street financial experts conspire to take advantage of Main Street…don’t we?

Yes, you’re reading this correctly. Instead of packaging up and selling the underlying mortgage as a security which led to the 2008 economic collapse, Wall Street is packaging up the rental home itself as a publicly traded REIT (Real Estate Investment Trust). Like a mutual fund, a REIT is a so-called “professionally-managed” collective investment scheme that pools money from many investors to purchase securities.

Big Opportunity or Just Another Way to Take Your Money?

CNBC recently interviewed several real estate oriented venture capital firms on camera. A principal at Colony Capital explained that “this is the biggest opportunity we’ve seen in our careers”. Colony, along with Carrington Holdings will be launching a publicly traded rental REIT sometime next year.

Colony Capital is estimating that as many as 6 to 7 million more homes will go into foreclosure over the coming years and be available for acquisition. Right now, along with a number of other firms, Colony and Carrington are out in the marketplace snapping up as many single family homes as they can get their hands on.

Translated into Main Street language, the comment that “this is the biggest opportunity we’ve seen in our careers” simply means “there’s lots of money pouring into this investment sector and we want to make sure we get as much of it as possible”.

Pioneers? Really?

What really caught my attention in the CNBC video is the fact that the hosts of the CNBC segment characterized these companies as “the Pioneers of an exploding new asset class…single family rentals”.

For more than 35 years, there have been real estate investors, both individuals and companies, that have bought single family homes, rehabbed them and put tenants in place either for themselves or for other investors. (I have been among this group since 1976.) We call the process “redevelopment”.

So, what does CNBC mean when they use the term “Pioneers”? Perhaps they mean it in the sense of “finding a new path to extract more money out of unsophisticated investors”.

Between 2000 and 2007, real estate “speculators” were purchasing single family rental properties purely for appreciation…a very dangerous game, as many found out. And, our Wall Street friends joined the party by concocting a scheme to package up toxic mortgages and sell them off as AAA rated securities…commonly known as Mortgage Backed Securities. They then sold off these securities to “unsophisticated investors” in the United States and around the world. Now, they’re doing it all over again.

The Real Question

There’s no doubt that investing into single family home rentals is an excellent investment. But, if you want to acquire this type of property to hold either in your Self Directed retirement plan or with personal funds, who do you want to handle for you…the Wizards of Wall Street, or local experts who have decades of experience working in the realm of single family home rentals?

Safeguard’s Managed Investment Program

The key to owning rental homes is ALWAYS property management. That’s why our investment offerings are managed by the same people who bought the property, rehabbed it and put the tenant in place.

Our investment Partners are experts in their local markets in which they are intimately familiar. They find a distressed property. They buy it, rehab it to a high standard, interview and select good tenants. Then, they sell the property to one of our investors and continue to manage it.

Since 2009, after the dust settled from the 2008 collapse, our Self Directed IRA and 401(k) clients, have been investing in distressed properties (primarily bank owned foreclosures). Most of these investments have been into single family homes.

These clients have worked with us to develop a strategic plan to invest on a “turn-key, hands off” basis and the rewards have been extraordinary. Our Managed Investment Program is producing cash-on-cash returns averaging 9-12%. With leverage, returns have been up in the 20-25% range.

It’s not too late to get started with this extraordinary opportunity to build retirement wealth, but you’ll need the right guidance and consultation.

For More Information About Safeguard Financial’s Services:

CLICK HERE for setting up Self Directed IRA and 401(k) plans
CLICK HERE for our Managed Investment Program
Call our toll free number at 877-229-9763.