If you are struggling to understand the current stock market and have a deep worry about your retirement future, then The Plug can help you find the right precious metals company to work with. Diversifying your portfolio to hedge against inflation may be your best option. One of the best methods to hedge inflation is through investment in precious metals like Gold, Silver, Platinum, and Palladium.
The IRS allows investors to buy precious metals through a self-directed IRA. The IRA gives investors the same tax benefits as a Standard IRA or Roth IRA. The benefit to the investor is they have control over their investments. One such control is the ability to buy or sell your precious metals at any time and delay any tax implications till you start your distributions. The IRS has specific guidelines for Gold and Silver to be purchased within your IRA and since we are all not tax advisors and IRS agents, we need to work with the companies providing the most accurate and trustworthy information.
Knowing which companies are the best choice to work with can be difficult. The internet is full of information and can make things more difficult and easier, at the same time. The Plug wants to help you by narrowing down all those options to get you to the best Gold and Silver IRA companies, so you don't need to start from scratch.
Today, we are providing some details regarding Lear Capital. We hope the information provided helps you decide if they are a viable company for you to work with. Keep reading to get information about the company, its offerings, and other details about its customer satisfaction and support.
Before we get started with Lear Capital Review:
It's tough to determine which precious metals dealer is reputable and reliable for your investment needs. The Plug aims to provide you with as much useful information as possible to shorten your decision-making process. The Best Gold IRA Dealers want to educate and inform their clients. We've broken down a list of the Top Gold and Silver IRA Companies for your review. Our research tells us our 5 Best Gold IRA Companies provide the highest quality customer service and reputation in the industry.
Check out The Plug's list of the 5 Best Gold IRA Companies and find out Is Lear Capital in our Top 5?
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Lear Capital: Is it a Reputable Business or Should I Look Elsewhere for My Gold and Silver
We are not going to beat around the bush on Lear Capital. All our information is coming from the internet and you should do your research before choosing to buy or sell from this precious metals business.
Lear Capital is currently offering metals, both IRA Approved Gold and Silver, along with numismatics and rare coins. The positive for Lear Capital is they have their currently available products on their website with pricing.
As with many online dealers offering the ability to purchase without speaking with a salesperson, their pricing is online. While a good source for retail buying of individual metals, the company also has experience working with Gold IRAs and can assist investors with buying metals for their retirement accounts.
The Plug only provides information on companies, we do not suggest to individual investors who they should and should not do business with.
The reviews for Lear Capital, which are covered later in this article, are mixed and in general not good for the company. When a business doesn't provide its BBB (Better Business Bureau) rating on its website, to us it is a RED Flag that something is not good.
The BBB notes that Lear Capital is Not an Accredited Business with their organization. Current BBB status states that Lear Capital has a 2.56 out of 5 Star Rating. There have been 39 complaints closed in the last 3 years and 11 complaints closed in the last 12 months. The overall rating for Lear Capital is a C+.
Our research online has also found articles that indicate Lawsuits against Lear Capital in California and New York for fraudulent practices. Both articles indicate the cases against Lear Capital for "...fraudulently charging undisclosed commissions - up to 33 percent...". You can check out these articles at ag.ny.gov and beverlypress.com.
Upon further research, it appears that Lear Capital has Filed for Chapter 11 Bankruptcy - Case 22-10165-BLS Doc 1 Filed 03/02/22. Since it is a Chapter 11 Bankruptcy Lear Capital can continue business operations during the bankruptcy. Check out the case information here at cases.creditorinfo.com/learcapital.
Again, our aim at The Plug is not to discredit any business. We want to provide the most useful information for an investor to choose a credible business.
As an online retailer, we appreciate the pricing of precious metals being open to the public to see. This allows investors to compare pricing. Make sure you do your due diligence before making any purchase from any precious metals dealers. The truth is you need to be aware of how gold and silver are priced and the premiums and commissions companies are charging for their produce.
Lear Capital: Who Runs the Company
The leadership of the company starts with Kevin DeMeritt as the Founder and Chairman of the company. Current operations are led by John Ohanesian the CEO.
Excerpts from Lear Capital Website:
Kevin DeMeritt, a seasoned expert in international banking, has established himself as a visionary in the field of finance, consistently displaying a remarkable ability to anticipate financial trends and guide investors toward profitable outcomes. With a reputation as a respected analyst, sought-after financial expert, and acclaimed author, DeMeritt gained recognition for his book, "The Bulls, The Bears and The Bust." This book, reviewed by the Associated Press, accurately predicted the market crash of 2001 and highlighted the subsequent rise of gold as a safe haven investment.
As the visionary Founder of Lear Capital, DeMeritt's expertise in economic cycles, financial trends, sovereign debt, and diversification strategies has positioned Lear as one of the most esteemed and consistently endorsed precious metals companies in the nation. Leveraging his two decades of experience in investment-quality gold, DeMeritt has successfully guided numerous investors in capitalizing on economic booms and safeguarding their savings during periods of financial downturns.
In addition to his role at Lear Capital, Mr. DeMeritt actively shares his insights on various talk radio platforms and boasts a remarkable track record of over 1,000 interviews. Through these engagements, he delves into the advantages of tangible assets, cautions against the volatility of Wall Street, emphasizes the importance of diversified holdings, analyzes the implications of US debt, and provides valuable predictions for the upcoming fiscal year.
John Ohanesian, is a renowned expert in the direct-to-consumer arena, showcasing his exceptional leadership skills during his tenure as President & CEO of Bosley, Inc. Under his guidance, Bosley transformed from a small private business into a global leader in hair restoration. With an impressive 20-year tenure at the helm, Ohanesian successfully expanded the brand into over 90 markets worldwide, spearheading the company's international growth in countries such as Canada, Mexico, and Japan. Notably, his business acumen also enabled the distribution of Bosley's hair care products in an extensive network of 35,000 salons across North America.
Continuously attuned to market dynamics, consumer preferences, and technological advancements, Ohanesian dynamically adapted the Bosley business model to navigate changing economic landscapes. In addition to his achievements at Bosley, he co-founded and served as CEO of the Aderans Research Institute, Inc., the esteemed research and development arm of Bosley.
Complementing his professional accomplishments, Ohanesian holds a degree from Sonoma State University and a Masters from California State University, Long Beach. Known for his commitment to philanthropy, he has actively contributed to the community, notably serving as the Administrator of Olympic Health Services during the Summer Olympics in Los Angeles, CA. Furthermore, Ohanesian has served on the Board of Directors of esteemed organizations such as the Center Theatre Group, City of Hope National Cancer Institute/Beckman Research Center, and The Archer School for Girls in Brentwood (Los Angeles), CA. Presently, he is a member of the Sheri and Les Biller Family Foundation based in Seattle.
What is a Lear Advantage IRA?
As a precious metals dealer, Lear Capital also assists individuals with Gold and Silver IRAs. Lear Capital calls their IRAs "Lear Advantage IRA". A precious metals IRA or Self-Directed IRA allows investors to invest in physical metals including Gold and Silver. This type of retirement account allows for alternative investment opportunities while allowing for the tax advantages of retirement distributions when investors have lower tax brackets.
Lear Capital's Lear Advantage IRA offers these services:
- Free IRA Set-up and Storage
- Free Gold & Silver Guides
- Price Match Guarantee
- 24-Hour Risk-Free Purchase Guarantee
- Real-Time Metals Pricing
- Free Evaluation of Metals From Others
How To Set Up a Lear Advantage IRA:
- Request a Free Brochure and Complete Application - Lear Capital associates will assist with the paperwork
- Fund Your Account - New Accounts can be funded with Max Contributions by IRA guidelines are $6,500 for those under the age of 50 and $7,500 for those over the age of 50. In addition, you could roll over your 401(k) or a portion of a current IRA with no penalty.
- Purchase Your Metals - Lear Capital associates will assist with the purchase of IRA Approved Gold or Silver Coins.
- Deliver Metals to Safe Storage - With coins and bars purchased within your SDIRA, you cannot hold them personally. You are required to hold them in an approved secured storage facility like Delaware Depository or other similar locations.
What Precious Metals Products Does Lear Capital Sell?
Lear Capital is a coin dealer, they have numismatics, rare coins, and IRA Approved Gold and Silver. Their product online is extensive and having knowledge of coin pricing and demand will assist you in determining what is right for you. Here is a quick overview of a few items found on their website. This is not all-inclusive and the pricing for certain products like the Proof Silver American Eagle states "call for pricing".
Gold Bullion and Coins:
Silver Bullion and Coins:
Advantages and Disadvantages of Investing In Precious Metals
Precious metals investing is not for every investor. Investing in precious metals offers advantages such as value retention, inflation protection, diversification, and global demand. However, potential disadvantages include a lack of income generation, price volatility, storage concerns, varying liquidity, and complex regulations. Consider both sides to make informed decisions about including precious metals in your investment strategy.
Advantages of Precious Metals Investing:
Investing in precious metals offers several key advantages for new investors. First and foremost, precious metals, such as gold, silver, and platinum, have a long history of retaining their value over time. They are considered tangible assets that tend to hold their worth even during periods of economic uncertainty or market volatility.
Precious metals also serve as a hedge against inflation. When the value of traditional currencies decreases, the price of precious metals often rises, providing a safeguard against the erosion of purchasing power. This makes them an attractive option for preserving wealth and maintaining stability in one's investment portfolio.
Moreover, investing in precious metals offers diversification benefits. Including these assets in a portfolio can help mitigate risk by reducing dependence on traditional stocks, bonds, or real estate. Precious metals often have a low correlation with other asset classes, meaning their value may move independently of the stock market, providing a potential buffer during times of market turbulence.
Another advantage of investing in precious metals is their global demand. These metals are sought after not only for investment purposes but also for their industrial and technological applications. The widespread demand for precious metals across industries can contribute to their overall value and potential for long-term growth.
Lastly, investing in precious metals is relatively accessible. Investors can choose from various forms, including physical bullion, coins, or exchange-traded funds (ETFs). This flexibility allows investors to tailor their investments based on their preferences and financial goals.
Disadvantages of Investing in Precious Metals:
While investing in precious metals offers several advantages, it is important for new investors to also consider the potential disadvantages. One significant drawback is the lack of income generation. Unlike stocks or bonds that may provide regular dividends or interest payments, precious metals typically do not generate ongoing income. Their value primarily relies on price appreciation, making them more suitable for long-term wealth preservation rather than immediate income generation.
Another potential disadvantage is the price volatility of precious metals. Their market values can experience significant fluctuations over short periods. While this volatility can present opportunities for gains, it also carries the risk of substantial losses. Investors need to be prepared for short-term price fluctuations and have a long-term investment horizon to potentially realize the benefits of precious metals.
Storage and security can be additional concerns when investing in physical precious metals. Safely storing and protecting physical gold, silver, or other precious metals may require additional costs, such as secure storage facilities or insurance. These factors should be considered when assessing the overall investment costs and potential returns.
Furthermore, the liquidity of precious metals can vary. While gold and silver are generally more liquid and widely traded, other less common precious metals may have a smaller market and limited liquidity. Investors should be aware of the ease with which they can buy or sell their precious metal investments in their preferred form or market.
Lastly, the regulatory environment surrounding precious metal investments can be complex. It is crucial for investors to understand the applicable regulations and potential tax implications of investing in precious metals, both at the national and international levels.
Is A Gold IRA Right For You?
When it comes to diversifying your retirement portfolio, a Self-Directed Individual Retirement Account (SDIRA) can provide you with more control and flexibility over your investments. One compelling option within an SDIRA is allocating a portion of your funds towards a Gold IRA, which involves investing in physical gold or other precious metals. Here are some benefits to consider:
- Diversification: Including precious metals in your retirement portfolio can help diversify your holdings beyond traditional assets like stocks and bonds. Gold and other precious metals often have a low correlation with other asset classes, meaning their value may move independently. This can potentially provide a buffer against market volatility and enhance the overall stability of your portfolio.
- Inflation Hedge: Precious metals have a historical track record of acting as a hedge against inflation. When the value of traditional currencies decreases, the price of gold and other precious metals often rises. By including them in your SDIRA, you can potentially protect your retirement savings from the erosive effects of inflation and maintain your purchasing power over time.
- Wealth Preservation: Gold and other precious metals have long been considered a store of value. Unlike paper currencies, they have intrinsic worth and tend to retain their value over the long term. Investing in a Gold IRA allows you to safeguard a portion of your retirement savings with tangible assets that have stood the test of time.
- Portfolio Protection: Precious metals can serve as a form of insurance for your retirement portfolio. During periods of economic uncertainty or stock market volatility, gold and other precious metals have historically demonstrated the ability to hold their value or even appreciate. This can provide a degree of stability and potential capital appreciation, helping to protect your overall portfolio.
To ensure proper diversification and risk management, it is generally recommended to allocate around 8-12% of your SDIRA towards precious metals. This percentage can be adjusted based on your risk tolerance, financial goals, and market conditions.
Lear Capital: Reviews and Complaints
As mentioned earlier in this company review, Lear Capital doesn't have the highest ratings and reviews for credibility and fair practice. Many of the complaints circle around their lack of clear pricing and hidden fees. Some of those hidden fees include commissions which are upwards of 33% in some circumstances.
We analyzed several review sources to give you a complete picture of these sites. See our notes below and if you choose you can click on the link to get over to Lear Capital page for each source.
Better Business Bureau - C+ Rating; Non-Accredited; 2.56/5 Star Rating; 39 Complaints in the prior 36 months and 11 complaints in the past 12 months. Link Here
Consumer Affairs - 4.7/5 Star Rating with 1196 reviews. Link Here
Yelp - 3.5/5 Star Rating; 59 reviews. Link Here
Trustpilot - 4.8/5 Star Rating; 1,409 reviews; Quick Responses by Company to Negative Posts. Link Here
Business Consumer Alliance (BCA) - AAA Rated; 5 Star Rating based on 5 Reviews; 8 Complaints closed in last 3 years; all complaints appear to be based on unprofessional tactics related to misinformation on silver pricing and large commission fees. Link Here
Our opinion of review sites and the information found is that you need to read and take them with a grain of salt. We know there are services that provide fake reviews both positive and negative for businesses. You need to look further into the complaints and read what each says to base any final decisions.
The Plug is not an investment advisor and does not recommend any particular investment choice. Readers are responsible for their individual choices and our review and information are based on our opinions. Please do your own due diligence before making any investment decisions.
Pros and Cons of Lear Capital
With every precious metals company, there are positives and negatives. You should consider all information read, but make decisions based on your choices. Consult investment advisors, attorneys, your CPA, or others to finalize any investment decision.
Final Thoughts on Lear Capital
While Lear Capital is still operating, there is a lingering Chapter 11 Bankruptcy and several negative reviews of being dishonest or hiding fees and charges to clients. We don't condone this type of business as our belief is Gold and Silver is a good investments, but some companies definitely are not concerned about the welfare of investor savings and retirement.
We would not recommend Lear Capital to our readers. We do have a list of favorable Gold IRA Companies that intent is to educate and provide clarity to precious metal investing.
Check out the companies in our 5 Best Gold IRA Companies article or look into the other Gold IRA Companies we have reviewed.
Don't be discouraged by one precious metals dealer, do your own research and you will find that securing your retirement savings is a good option to hedge inflation and combat any negative governmental or economic influences on your traditional stock or mutual fund portfolio.