MONSEY, NY--(Marketwire - Sep 19, 2012) - On September 13th Fed Chairman Ben Bernanke announced a new round of financial intervention in the form of a continual $40 billion per month investment in mortgage-backed-securities. Almost immediately, the speech had visible ramifications with a surge in gold prices and other commodities. As a facilitator of self-directed IRAs and Solo 401(k)s, Broad Financial saw a similar upswing in consumer interest and set a company record for single day customer inquiries.
CEO Brian Finkelstein was not surprised by the response. "The Fed's decisive action sends a clear message to the investing public. Unfortunately, it may not be the message that the Fed wants people to hear. You can't promise an unlimited greasing of the wheels and then not expect to stoke fears of inflation."
The reason why this kind of speech leads to interest in self-directed IRAs can be explained by their ability to invest in hard assets. Broad COO, Daniel Gleich, explained that hard assets often appear to be the only economically viable alternative. "With the promises made by QE3, investors find themselves in a tight position. The influx of government simultaneously encourages inflation while at the same time keeping interest rates low in the short term. That means that traditional savings vehicles are not a good option for the here and now, and Wall Street products might very well be a bad bet for later. Hence the run to physical commodities like gold and real estate."
Broad's platform is especially attractive to those looking to get into hard assets because of its feature of Checkbook Control. This allows investors to bypass the custodian when making investments, thus saving on transaction fees and paperwork hassle. Checkbook Control is accomplished by establishing a dedicated LLC and then opening a checking account in the name of the LLC. The investor can now invest his/her retirement funds by simply writing a check.
With current economic forecasts predicting a continuation of the status quo, self-directed platforms will very likely continue to see impressive growth rates.